Health Savings Account (HSA)

Health Savings Account (HSA)

If you enroll in one of the High Deductible Health Plans (HDHP), you may be eligible to open a Health Savings Account (HSA)
through Optum Bank. An HSA allows you to set aside tax-free dollars through payroll deductions to conveniently pay for
eligible expenses.

What are the benefits of an HSA?

  • The State of Colorado contributes FREE money to your account.
  • You can now make pre-tax or post-tax contributions to your HSA.
  • An HSA is your bank account. If you leave the company, the account goes with you.
  • All unused funds roll over year to year.
  • HSAs can make a great retirement savings account.
  • Employer funds will be deposited prospectively and one month
    in arrears.

Are HSAs Really Tax-free?

Yes! HSAs give you a triple tax advantage:

  1. Your contributions are tax deductible
  2. Payments of qualified expenses are tax-free
  3. Earnings are tax-free

Contributions

You can contribute funds from your paycheck up to the annual IRS limits. To receive the State of Colorado contributions, you
must first open an HSA through Optum Bank.

Coverage Type 2020 Employer
HSA Contribution
2020 Maximum
Employee Contribution
2020 IRS
Contribution Limit
Individual Coverage $720 $2,830 $3,550
Family Coverage $720 $6,380 $7,100
Age 55+ Catch-up Contribution Additional $1,000

Watch Your Balance Grow

Once your HSA balance reaches the investment threshold, you may choose to invest your HSA funds and earn interest tax-free.

The Fine Print

  • You must be enrolled in a qualified High Deductible Health Plan (HDHP).
  • You cannot be covered under another non-qualified health plan, including your spouse’s Health Care Flexible Spending Account.
  • You cannot be enrolled in Medicare or Tricare.
  • You cannot be claimed as a dependent on someone else’s tax return.

Questions? Refer to IRS Publication 969 for complete HSA rules. Other exclusions may apply. Contact Optum Bank.

Your Rights

This website highlights some of your benefit plans. Your actual rights and benefits are governed by the official plan documents. If any discrepancy exists between this communication and the official plan documents, the plan documents will prevail. The State of Colorado reserves the right to change any benefit plan without notice. Benefits are not a guarantee of employment.

Your Benefits Team

Division of Human Resources
303-866-3434 or 800-719-3434 state_benefits@state.co.us

Your Department’s Human Resources Office: Benefit Administrator List

Accessibility

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