Health Savings Accounts (HSAs) are pretax medical savings accounts available to taxpayers in the United States who are enrolled in a qualified high deductible health plan (the Rice CDHP, Consumer-Directed Health Plan is a qualified plan). Funds can be used to pay for eligible health care expenses for the member, their spouse, and their tax dependents. Or funds can be saved for the future.
Annual Contributions:
Under current Internal Revenue Service rules, the annual contribution limits are:
| HSA Annual Contribution Limits for 2024 | |
| Individual | $4,150 |
| Family | $8,300 |
|
Age 55+ catch-up provision allows an additional $1,000 contribution |
$5,150 or $9,300 |
For the past plan year, annual contribution limits were:
| HSA Annual Contribution Limits for 2023 | |
| Individual | $3,850 |
| Family | $7,750 |
|
Age 55+ catch-up provision allows an additional $1,000 contribution |
$4,850 or $8,750 |
The HSA plan is administered by Fidelity at www.netbenefits.com/rice. Members should Carefully review the HSA election with their spouse/partner to avoid going over the annual contribution limits. More information about the Fidelity HSA plan is available here.
There are tax penalties for excess HSA contributions. Rice will not withdraw excess funds from individual HSA accounts if the calendar-year maximum amount is exceeded.
Individuals cannot have an HSA and FSA at the same time unless the FSA is a limited purpose FSA. Rice does not offer a limited-purpose FSA. Individuals cannot have an FSA if their spouse has a qualified high deductible health plan. For questions, Fidelity, a tax advisor, or the benefits team.
What is the advantage of an HSA over a traditional medical spending account?
Unlike a traditional medical spending account, funds roll over and accumulate year to year if not spent. HSAs are owned by the individual allowing them to take the account with them should they leave Rice. The HSA also has an option to invest the accumulation in selected mutual funds. The funds can accumulate tax-free, grow tax-free, and be used for eligible expenses tax-free. It’s a great way to save money for health care costs down the road, even in retirement.
To learn more, read through the resources below:
HSA program requirements and limitations
HSA FAQs
- Can I invest the money in my HSA?
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You may choose to invest some or all of your HSA money for potential growth to help pay for qualified medical expenses in the future or retirement. If it grows, that growth is also tax-free.
- Can I roll my HSA over from year to year?
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Yes, your H.S.A is not "use-it-or-lose-it" — the account belongs to you, and your contributions can accumulate year after year and are yours, even if you leave Rice’s employment
- Is an HSA right for you?
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If you're covered by the CDHP, an HSA can offer a variety of benefits. It's tax-advantaged in 3 ways—contributing, spending for qualified medical expenses, and investment growth are all federal income tax-free. You can also invest your HSA money for potential long-term growth, so HSAs are a great way to save healthcare costs through retirement.
- How is an HSA different from a Flexible Spending Account (FSA)?
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HSA money is not “use-it-or-lose-it” and the entire HSA balance may carry over from year to year. The HSA is owned by you, even when you change employers.
- How do I access my HSA?
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You will set up your HSA with Fidelity Investments. You will receive an email with instructions to set up an account at Fidelity if you did not previously participate in the plan.
For more information please see this guide.
- Am I eligible to open and contribute to an HSA?
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You are eligible for an HSA if:
- You are covered by the CDHP on the first of the month;
- You’re not covered by another comprehensive medical plan
- You cannot be claimed as a dependent on someone else’s tax return.
You are not eligible for an HSA if:
- You are enrolled in any part of Medicare
- You are 69 1/2 years old *
- You receive health benefits under TRICARE
- Can I enroll in both the HSA and FSA?
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Faculty and staff who enroll in the CDHP with the HSA cannot also enroll in the healthcare flexible spending account, per IRS rules, since both are tax-advantaged accounts.
- What are qualified medical expenses for reimbursement using the HSA plan?
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The Internal Revenue Service (IRS) determines which expenses can be paid and reimbursed from an HSA. Some examples include:
- Medical plan deductible
- Dental treatments not covered by dental insurance
- Copays and coinsurance
- Prescription drug out-of-pocket costs
- Vision out-of-pocket expenses
- How much does Rice contribute to my HSA?
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- Rice will contribute up to $500 if you enroll in the CDHP Employee Only coverage option
- Rice will contribute up to $1,000 if you enroll for any other coverage option of the CDHP