If you participate in the HDHP medical plan, you may be eligible to participate in a Health Savings Account (HSA). An HSA is a tax-exempt savings account that can be used for eligible healthcare expenses (an expense which pays for care as described in Section 213 (d) of the Internal Revenue Code).
HSA Overview
What is a Health Care HSA?
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You may contribute pre-tax dollars to the HSA. Interest accumulates tax-free and funds are tax-free to withdraw for eligible medical, prescription, dental and vision expenses.
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The HSA funds can be used to help you satisfy your plan’s annual deductible.
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Your HSA with RWJBarnabas Health will be with Optum Bank.
What is a Health Care HSA?
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You must have coverage under an HSA-qualified HDHP medical plan.
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You must have no other first-dollar medical coverage.
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You must not be enrolled in Medicare.
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You cannot be claimed as a dependent on someone’s tax return. Contributions to an HSA are limited annually by the IRS.
2024 Contribution Limits
For 2024, the contribution limits are:
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$4,150 for employee only coverage for employees under 55
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$8,300 for family coverage for employees under 55
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Additional catch-up contribution of $1,000 for employees over age 55
