The Health Savings Account (HSA) is a portable savings account used with the BCBS of TX Consumer Driven Health Plan (CDHP) to pay for medical expenses with tax-free dollars. It can be used for current expenses or to save for future medical expenses. Like a 401(k) Plan, the money you accumulate in your HSA is yours to keep. If you leave or retire from Dal-Tile/Unilin, the money goes with you and is never taxable if it is used for qualified medical expenses. Your money stays in an interest-earning account until you decide to use it.
For 2011, CDHP plan participants who opened an HSA, Dal-Tile/Unilin will make the following one-time contribution to your HSA:
- $600 for Team Member only
- $800 for Team Member + Spouse
- $800 for Team Member + Children
- $1,300 for Team Member + Family
How It Works
- You are not required to contribute to your HSA to receive the company’s 2011 contribution.
- You must enroll in the HSA in order to receive The Company's contribution.
- CDHP participants cannot enroll in a Healthcare FSA.
- Contributions are taken out of your paycheck before taxes – so your payroll tax withholding is lower. And you pay no taxes when you use the account to pay eligible medical expenses.
- Your balance in the HSA rolls over from year to year, so you can use it as a way to save for future health care expenses, including your deductible.
- You own your account, so you can take it with you (including Dal-Tile/Unilin’s contribution) if you change employers, health plans or retire.
- You may make non-payroll contributions directly to your account, but you are responsible for deducting them from your taxes when you file your IRS return.
* Assumes Standard deductions and four exemptions.
** Varies, assumes 3%
* This data is an illustration and does not guarantee the savings an indivial may realize from an FSA account
- After your account balance reaches $1,500, your account earns tax-free interest.
- While there are no minimum contribution requirements, the IRS limits the amount of money that you can put into an HSA each year. For 2011, the maximum contribution allowed (yours and Dal-Tile/Unilin’s combined) is $3,050 for individuals and $6,150 for families.
- If you were age 55 or older by the end of 2010, and are not eligible for or enrolled in Medicare, you can make additional contributions directly into your HSA account. For 2011, you may contribute $1,000 in addition to the maximum individual contribution.
- Beginning at age 65, you can make withdrawals from your account for any reason without penalty. If you have an HSA before you enroll in Medicare, you can keep any funds accumulated in your HSA and use those funds to pay for qualified medical expenses incurred after you are on Medicare. However, you cannot continue to make contributions to an HSA after you enroll in Medicare.
Dal-Tile/Unilin with pay the monthly bank account fee while you are an active employee with the company. If you leave the company for any reason this fee will become the account holders responsibility.