After enrolling in the Aetna HDHP Premium plan, Salesforce will automatically set-up and contribute to a health savings account (HSA) on your behalf. We’ll contribute $750 for single coverage or $1,500 for family coverage to your HSA. You can use the funds for qualified health care expenses when you need it—in an emergency, when money is tight, or in retirement. You’re in control—you choose when to open your account, how much to contribute, and when and how you want to use your money.
- A unique, tax-advantaged savings account
- Save and spend—today or tomorrow
- Why contributing to the HSA is so important
- Who can enroll in an HSA
- What you can use it for
- How to pay for expenses and manage your account
- How to invest your HSA money
- Key reminders
- BNY Mellon investment options [PDF]
Your money, always
The money in your account rolls over from year to year and earns tax-free interest. You won’t lose your unused balance at the end of the year like you would with a Flexible Spending Account (FSA). Plus, with an HSA, the allowed maximum annual contribution is higher than a traditional FSA. For 2017, the HSA maximum is $3,400 for single coverage and $6,750 for family coverage.
Your savings and earnings are always yours to keep. The balance belongs to you even if you change medical plans, retire, or leave Salesforce.
Triple tax advantages
There are many benefits to opening an HSA, but these are the top three, tax-advantaged benefits:
- No tax on deposits. Your payroll contributions go into your account before federal taxes are withheld, lowering your taxable income.
- No tax on earnings. Interest and investment earnings grow tax-free, unlike with a traditional IRA where investment earnings are taxed.
- No tax on withdrawals. The money you withdraw to pay for eligible health care expenses—today, tomorrow, or anytime in the future—is not subject to taxes.
Contributions to your HSA are exempt from Federal income tax. However, some states, including California, tax HSA funds.
In addition to Salesforce’s contribution to your HSA, you choose how much, if anything, you’d like to save in your HSA each year. Pretax contributions are automatically made from your paycheck to your account. Another option is to contribute to the account for the current tax year in lump-sum amounts—either through electronic fund transfers or personal checks until April 15 of the following year (the same day you file your taxes).
|If you’re age 54 or under|
|Medical coverage elected||Maximum annual 2017 HSA contribution*|
|Employee + family||$6,750|
|If you’re age 55 or over|
|Medical coverage elected||Maximum annual 2017 HSA contribution*|
|Employee + family||$7,750|
* Per IRS regulations, this maximum includes any Salesforce contributions.
Save more with a limited purpose FSA
You can save more pretax by opening an HSA and a limited purpose Flexible Spending Account (FSA). With a limited purpose FSA, you can save an additional $2,550 for dental and vision expenses in 2017. You'll also benefit from another pretax paycheck deduction that lowers your taxable income.
Note: If you enroll in the Aetna HDHP Premium plan, you can't participate in a traditional health care FSA (due to IRS restrictions)—but you have the option to enroll in a limited purpose FSA. Review more important HSA rules and reminders.
Many people are concerned about paying for health care expenses in retirement, and an HSA can help. This account lets you save tax-free money that you can use for future health care needs.
Why start making contributions?
- Salesforce will help you start saving. We’ll contribute $750 for single coverage or $1,500 for family coverage to your HSA. These funds will be contributed per paycheck over the course of the calendar year. Should you have expenses that exceed your HSA balance, you would need to pay any costs out-of-pocket, keep your receipts, and reimburse yourself once you have sufficient funds in your account. For those covered by the HDHP Premium plan for less than the full calendar year, Salesforce’s contributions will be pro-rated.
- You leverage the lowest paycheck contributions. If you contribute the amount you save in medical paycheck contributions toward your HSA, you’ll boost your account savings without additional money coming out of your paycheck.
- Your savings roll over year to year. There’s no “use it or lose” rule with HSAs like there is with FSAs—your HSA balance carries over from year to year.
- You own your money. Your HSA is yours to keep, whether you change medical plans, retire, or leave Salesforce. You keep not only your contributions, but Salesforce’s contributions, too.
- You decide how to spend your HSA dollars. You can use them for current health care expenses or let them build up for future medical expenses—the choice is yours.
Remember: You can only contribute to an HSA when you enroll in the Aetna HDHP Premium or Standard plan.
The IRS is very specific about who can enroll in an HSA. You are eligible to enroll yourself and your eligible dependents in the HSA if:
- You are enrolled in either the Aetna HDHP Premium plan or the HDHP Standard plan.
- You aren't covered as a dependent under your spouse or domestic partner's plan.
- You aren't enrolled in Medicare, Medicaid, or TRICARE.
- You aren't claimed as a dependent on another person's tax return.
Important note about dependents: Domestic partners and their children or your children up to age 26 may be enrolled in the Aetna HDHP Premium or Standard plans, but their expenses can’t be paid through the HSA unless they qualify as federal tax dependents. Consult your tax advisor if you have questions about your dependents’ tax status.
You can use HSA funds to pay for qualified health care expenses that are not covered by insurance. Basically, any medical, dental, or vision expense that you could deduct on your tax return can be paid from your HSA. Examples:
- Prescription drugs
- Dental and vision expenses
- Alternative medicine, including acupuncture and chiropractic services
You can use HSA funds to pay for qualified health care expenses for yourself and your dependents who qualify as IRS dependents for federal income tax purposes (whether they’re enrolled in the Aetna HDHP Premium plan, HDHP Standard plan, or neither).
Examples of eligible expenses
You can use your HSA to pay for:
You can’t use your HSA to pay for:
|Note: If you use your HSA to pay for non-qualified expenses, that amount will be subject to normal income tax plus a 20% tax penalty.|
If you enroll in an HSA and a Health Care FSA, your FSA will be a "limited FSA" and can be used for dental and vision expenses only. Once you've exhausted your "limited FSA," you can use your HSA for additional dental and vision expenses. In addition, if you have an HSA and "limited FSA" and you have met your HDHP Premium or Standard plan deductible, you can change your "limited FSA" into a standard Health Care FSA.
Important note about eligible expenses: Domestic partners and their children or your children up to age 26, may be enrolled in the Aetna HDHP Premium or Standard plan, but their expenses can’t be paid through the HSA unless they qualify as federal tax dependents.
WageWorks® is our HSA administrator. You can use your HSA to pay for medical, dental, or vision expenses, including your deductible and your coinsurance. Check out this HSA Quick Start Guide [PDF] or follow the instructions below to get started with your account:
- Register at www.wageworks.com.
- Access the funds in your HSA in three ways:
- WageWorks Health Care Card. Use your card—whether at a doctor’s office or pharmacy—and money is deducted right from your account.
- Direct, online payments. Access your HSA online and fill out a simple form to pay for expenses at www.wageworks.com.
- Reimburse yourself. Arrange for your HSA funds to be transferred to your checking account or mailed to you via check for expenses you’ve already paid.
- Track your receipts throughout the year. You have access to EZ Receipts® by WageWorks, a mobile app that documents your receipts on the go. To download the app, search the app store on your iPhone, Android, or Blackberry for “WageWorks” or “EZ Receipts.”
- Contact WageWorks with any questions:
- Visit www.wageworks.com,
- Call 1-877-WAGEWORKS (1-877-924-3967)
Accounts $1,000 and over
- BNY Mellon investment company
- Over 10 funds available, including Vanguard, Dodge & Cox, Oppenheimer, Neuberger Berman, JPMorgan, Morgan Stanley, American Century and more.
- No trading fees
- $2/month investment fee
Accounts under $1,000
- FDIC insured interest bearing account
An HSA offers many advantages, including triple tax savings. But it also comes with special rules and limits. To avoid unnecessary penalties or fees:
- Follow the rules. For example, you pay taxes and a 20% penalty if you use the money in your HSA for non-health care expenses. Review the list of eligible HSA expenses. You also pay a penalty if you contribute too much (more than the IRS maximum) to your account.
- Don’t double dip. You cannot use HSA funds to reimburse yourself for expenses that are covered by any health plan, including your or your spouse’s medical, dental, or vision plans.
- Consider a limited purpose FSA. If you enroll in the Aetna HDHP Premium or Standard plan and want to also participate in a health care flexible spending account (FSA), you’ll need to choose a limited purpose FSA to pay for eligible dental and vision expenses. Because you already get tax benefits for your medical expenses through your HSA, you cannot get reimbursed for those same benefits through a “general purpose” health care FSA.
- Go online for more information. Get answers to frequently asked questions, check your account balance, download account statements, and pay your health care-related bills in one convenient spot at www.wageworks.com.
- Be prepared to complete an extra tax form. Because contributing pre-tax can reduce your taxable income, you’ll need to include Form 8889 with your federal income tax return each year that you have your HSA.
- Learn about tax implications. Contributions to your HSA are exempt from Federal income tax; however, individual states are allowed to establish their own tax treatment of the contributions. Find out more.