Health Savings Account For a Qualified Consumer Driven Health Plan A Health Savings Account (HSA) is a consumer-oriented, tax-advantaged savings account that is always combined with a Consumer Driven Health Plan (CDHP). It is an interest-accruing account, similar to an Individual Retirement Account (IRA), which provides financial control over how you spend your health care dollars and can be used to pay for your out-of-pocket medical expenses. Money not used in your Health Savings Account can be rolled over to the following year. HSA funds can be used for all qualified medical expenses, including medical services, as well as eyeglasses, dental procedures, prescription drug coverage and over-the-counter medications provided you submit a prescription from your provider. See IRS Publication 969 for more information and a listing of Qualified Eligible Expenses at www.irs.gov Annual HSA Base Contributions If you enroll in one of the three CDHP plans for January 1, 2025, DePauw will make a base contribution to your HSA based on the tier of coverage you are enrolled in. To qualify for an HSA, you must The amount of this contribution will be available mid January. meet the following requirements, DePauw University Annual HSA Base Contributions as defined by the IRS: • You must be covered under a Retiree Only $500 Consumer Driven Health Plan • You have no other health Retiree + 1 or more Dependents $1,000 coverage except what is permitted by the IRS HSA Incentive Plan • You are not enrolled in Medicare You will have an opportunity to earn additional HSA contributions through the Our • You cannot be claimed as a Healthy Tiger incentive program. If you are covering your spouse, they will also have dependent on someone else’s the option of participating in the HSA incentive plan to earn contributions to your tax return. HSA. The maximum amount of incentive dollars you can earn each year is based on How Should You Manage Your your tier of coverage in the medical plan. HSA? Maximum HSA Incentive Contributions • Contributions can be made with Retiree Only $500 pre-tax money through payroll deductions, or contributions can Retiree + 1 or more Dependents $1,000 be made post-tax and then deducted from your income IRS 2025 Maximum Contributions when you file your income tax return. 2025 IRS Max Contributions IRS Post Age 55 “Catch-up” • Funds should be limited to qualified medical expenses; Single $4,300 $1,000 • Keep receipts documenting Family $8,550 $1,000 medical expenses; When to Stop Contributing to If You Will Be Turning 65 Your HSA? Active retirees turning 65 have the option to accept or decline enrollment in Medicare, including • When you are no longer Medicare Part A. enrolled in a qualified health • Retirees who accept enrollment in any part of Medicare are no longer eligible to make or plan; receive contributions to an HSA. • When you become eligible for • If you elect Medicare at age 65, your maximum HSA contribution for the year you elect will be Medicare and you plan to enroll, prorated by the number of months you were not enrolled in Medicare. you must stop your HSA • Retirees who decline enrollment may continue to make and receive contributions to an HSA. contribution 6 months prior to • Qualified distributions remain tax free regardless of your eligibility to contribute. your Medicare effective date. • Non-qualified distributions are taxable but no longer carry a 20% penalty after age 65. • Medicare Part(s) A, B, D and Medicare HMO premiums may be paid or reimbursed with tax-free HSA dollars. You cannot use your HSA to pay for Medigap premiums. This benefit guide only highlights the benefits available. For a more complete description, see the Plan Certificate. 11 If any conflict should arise between this summary and the Plan, the Plan's Certificate will govern in all cases.