Health Savings & Flexible Spending Accounts
Your HSA can be used for qualified expenses for you, your spouse, and/or tax dependent(s), even if they’re not covered by your plan. If you are not currently enrolled in a HDHP but you have unused HSA funds from a previous account, those funds can still be used for qualified expenses.
Health Savings Account (HSA)
Administered by HealthEquity. Available with WEBTPA HDHP 1, WEBTPA HDHP 2, KAISER PERMANENTE HDHP only. Enroll via Benefits Service Center.
- Your HSA can be used for qualified expenses for you, your spouse, and/or tax dependent(s), even if they’re not covered by your plan. If you are not currently enrolled in a HDHP but you have unused HSA funds from a previous account, those funds can still be used for qualified expenses.
- You are enrolled in an HSA-eligible High Deductible Health Plan.
- Funding: Pre-tax Paycheck Contributions; Employer Contributions (pre-tax)
- You can save and roll over HSA funds to the next year if you don’t spend them all in the calendar year. You can even let funds accumulate year over year to use for eligible expenses in retirement.
- There are no vesting requirements (you own all contributed HSA funds immediately) or forfeiture provisions (you keep all HSA funds whether you leave the company or retire).
- HSA contributions are made through payroll deduction on a pre-tax basis when you open an account with HealthEquity. The money in your HSA (including interest and investment earnings) grows tax-free. When the funds are used for qualified medical expenses, they are spent tax-free.*
- HSA funds are also portable if you change plans or jobs.
- Eligible expenses: Doctors’ visits; Eye exams; Prescription expenses; Laser eye surgery; Over-the-counter medications; And more — see IRS Publication 502 on www.irs.gov for a complete list
- Per IRS regulations, if HSA funds are used for purposes other than qualified medical expenses and you are younger than age 65, you must pay federal income tax on the amount withdrawn, plus a 20% penalty tax. This is why it’s important to know what medical expenses qualify for HSA use and to keep track of where you spend your HSA funds.
- You are not covered by your spouse’s or parent’s non-HDHP.
- You or your spouse does not have a Healthcare Flexible Spending Account or Health Reimbursement Account.
- You are not eligible to be claimed as a dependent on someone else’s tax return.
- You are not enrolled in Medicare or TRICARE.
- You have not received Department of Veterans Affairs medical benefits in the past 90 days for non-servicerelated care. (Service-related care will not be taken into consideration.)
- HealthEquity will issue you a debit card with direct access to your account balance. Use your debit card to pay for qualified medical expenses — no need to submit receipts for reimbursement. Like a regular debit card, you must have a balance in your HSA account to use the card.
- Eligible expenses include doctors’ visits, eye exams, prescription expenses, laser eye surgery, over-the-counter medications, and more. Visit IRS Publication 502 on www.irs.gov for a complete list.
- Because HSA funds never expire, contributing your annual maximum to your HSA can help you save to pay for healthcare expenses tax-free after retirement.
- Your HSA is a personal bank account that you own and manage. You decide how much you contribute, when to use the money for medical services and when to reimburse yourself. You can save and roll over HSA funds to the next year if you don’t spend them all in the calendar year. You can even let funds accumulate year over year to use for eligible expenses in retirement. HSA funds are also portable if you change plans or jobs. There are no vesting requirements (you own all contributed HSA funds immediately) or forfeiture provisions (you keep all HSA funds whether you leave the company or retire).
- To enroll in ACE’s HSA, you must elect one of the HDHP plans with ACE. Submit all HSA enrollment materials and choose the amount to contribute on a pre-tax basis. ACE will establish an HSA account in your name and send in your contribution once bank account information has been provided and verified.
- New for 2027, ACE’s HSA employer contribution will be a dollar for dollar match to your HSA based on your annual employee contribution amount - up to the amounts listed in the chart below. You must make an employee contribution in order to receive the employer contribution. The employer contribution will be deposited each pay period. The employer contribution is prorated based on when you enroll. The full amount shown below is for employees enrolled in the HSA as of January 1.
- HSA contributions over the IRS annual contribution limits ($4,500 for individual coverage and $9,000 for family coverage for 2027) are not tax deductible and are generally subject to a 6% excise tax. If you’ve contributed too much to your HSA this year, you have two options:
- Remove the excess contributions and the net income attributable to the excess contribution before you file your federal income tax return (including extensions). You’ll pay income taxes on the excess removed but won’t have to pay a penalty tax.
- Leave the excess contributions in your HSA and pay 6% excise tax on them. Next year consider contributing less than the annual limit to your HSA.
- The ACE HSA is established with HealthEquity. You may be able to roll over funds from another HSA. For more enrollment information, contact the Benefits Service Center or visit www.healthequity.com.
- COVERAGE
- Employee
- ANNUAL LIMIT
- $4,500
- COVERAGE
- Family
- ANNUAL LIMIT
- $9,000
- COVERAGE
- Catch-Up Contribution (Ages 55+)
- ANNUAL LIMIT
- $1,000
- Coverage Tier
- Employee
- WEBTPA HDHP 1
- $600
- WEBTPA HDHP 2
- $300
- KAISER HDHP
- $300
- Coverage Tier
- Family
- WEBTPA HDHP 1
- $1,200
- WEBTPA HDHP 2
- $600
- KAISER HDHP
- $600