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
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
Are HSAs Really Tax-free?
Yes! HSAs give you a triple tax advantage:
- Your contributions are tax deductible
- Payments of qualified expenses are tax-free
- Earnings are tax-free
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
|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.