Health Savings Account (HSA)

Changes for are noted in pink. Please review carefully.

Stretching your dollars

A Health Savings Account (HSA) is a tax-advantaged account which allows you to pay for your eligible out-of-pocket health care costs using pre-tax dollars – meaning you save money.

You’re offered an HSA if you select the Advantage Plan. You can use this account to pay for your health expenses in the current plan year or roll it over into future years.

Key details

  • You contribute pre-tax dollars*
  • Your savings can be invested and grow tax free*
  • You don’t pay tax when you withdraw your savings to pay for qualified medical expenses*
  • You can contribute up to $3,850 ($3,650) for individual coverage and $7,750 ($7,300) for family coverage
  • If you are 55 or older, you can contribute an extra $1,000
  • The Start-up contribution will be prorated based upon your month of enrollment

 

*There are some exceptions for state taxation, so it’s important to check how your state treats the HSA.

Save, Invest and Build
  • Your HSA belongs to you, the money in your account rolls over year after year and it stays with you, even if you leave the company
  • Once your account reaches $1,000, you can start investing your HSA funds
  • Visit healthequity.com to make your investment choices

Your wallet will thank you for being in the right plan.

Over 40% of Reynolds employees are enrolled in the Advantage Plan. They are paying less for their monthly medical premiums, receiving a Start-up contribution in their Health Savings Account, and are saving and investing money for health care expenses that is growing tax-free.

FAQs

How do I contribute into an HSA?

Health Equity administers the HSA. Once you confirm that you meet the eligibility requirements, Health Equity will open your account and you’ll be able to start contributing.

Reynolds will make a Start-up Contribution to give your HSA a boost. You can contribute additional funds through pre-tax payroll deductions or by making tax-deductible contributions directly to Health Equity. You can change your contributions anytime through Alight.

What’s the difference between an HSA and a Health Care FSA?

The main differences between an HSA and an FSA are shown in the table below.

  HEALTH SAVINGS ACCOUNT FLEXIBLE SPENDING ACCOUNT
Who can contribute? Employees enrolled in the Advantage Plan as long as HSA eligibility requirements are met. Employees who aren’t enrolled in the Advantage Plan.
What is the maximum that can be contributed during 2023? For Individual Coverage: $3,850 ($3,650)
Family Coverage: $7,750 ($7,300)
At age 55 you can contribute an additional $1,000 annually.
$2,750
If funds are left at the end of 2023, will they rollover to the next year? Yes No
Can the funds be invested to potentially grow? Yes No
Will the account remain open if you leave the Company? Yes – you own the account. Generally, no.
Am I eligible to contribute to an HSA?

You’re able to contribute to an HSA if you are enrolled in an HSA-eligible health plan like the Advantage Plan and meet other IRS requirements. If you’re unsure if you qualify, talk to a tax advisor or consult IRS Publication 969.

Since the HSA is a tax-advantaged account, there are rules about who can participate. You won’t be eligible if:

  • You’re covered by any other health insurance plan that isn’t an HSA-eligible health plan.
  • You’re enrolled in Medicare (Part A or B) or claimed as a dependent on another person’s tax return.
  • You’re a U.S. resident who resides in Puerto Rico or American Samoa.
  • You’re on active military duty or a veteran who received veteran’s benefits within the last three months.

Tools

Blue Cross Blue Shield (BCBS)
Review your health care expenditure over the last few years
Express Scripts (ESI)
Visit the ESI website to review your prescription drug expenditure over the last couple of years.
Express Scripts Price Comparison
Compare the cost of your prescription drugs under the Advantage and Standard Plans. Remember, once the Advantage Plan deductible is met your cost is the same under each medical plan.
myHealthEquity
Find out more about tax-favored savings
Ayco Financial Coaching
Learn how to maximize your savings
RAIbenefits.com
Evaluate your needs, change your HSA contribution, set saving goals and choose the best plan for you.

Downloads

HSA Basics (2022)

HSA Basics (2023)

Deciding which plan is right for you (2022)

Deciding which plan is right for you (2023)

Was this page helpful?

Yes No
rainbow strip