What is an HSA?
A savings account that lets you pay for eligible medical, dental, vision and pharmacy expenses with tax-free dollars. You can use your HSA to pay for eligible healthcare expenses not covered under your medical, dental or vision plan.
If you enroll in the HDHP Medical plan, you’re eligible to open an HSA through WEX.
Contributions
Your contributions to the HSA are pre-tax. You can select a contribution amount when you enroll/re-enroll each year, and contributions are taken from your paycheck pre-tax.
Salesloft also makes contributions to your account. For 2024, Salesloft will contribute up to $1,200 for individual or $2,400 for family coverage.
The HSA maximum has increased for 2024. The 2024 maximum total annual contribution (yours and Salesloft’s combined) to your HSA is $4,150 for individual coverage and $8,300 if you cover dependents. You can contribute an additional $1,000 if you are age 55 or older.
It’s a savings account. Any money in your HSA that you don’t spend stays in your account to help you save for future medical and retiree health care expenses.
HSA Advantages
You own your HSA, so the money is yours to keep even if you change jobs or retire.
There’s no use-it-or-lose-it rule, so you don’t have to spend the money when you don’t need to. Your balance rolls over each year and keeps growing.
You have three ways to save on taxes: tax-free contributions, tax-free earnings on interest and investments and tax-free withdrawals to pay for healthcare.
The account is flexible, so you can spend your HSA dollars now on current health expenses, or use later if you leave Salesloft or retire.
Once your account balance reaches $1,000, you can invest your HSA dollars to help your account potentially grow faster. There are many investment options available, and you can choose the ones you prefer, just as you do with a 401(k) plan. With the HSA, any income you gain from investments is also tax-free.
Eligibility
The HSA is only available when you enroll in a High Deductible Health Plan, like the Cigna HDHP.
You are not eligible for the HSA if you:
- Are enrolled in any form of Medicare, including Parts A, B or D.
- Have coverage under the Cigna PPO 1000 or Cigna PPO 2000.
- Can be claimed as a dependent on someone else’s tax return.
- Are covered by veterans’ benefits and have used Veterans Affairs medical services within the past three months.
- Are enrolled in or covered by a general purpose Healthcare Flexible Spending Account (FSA) or Health Reimbursement Account (HRA), including one through your spouse’s/domestic partner’s employer.
