A Health Savings Account (HSA) is a tax-advantaged savings account used in combination with a High Deductible Health Plan to pay for qualified health care expenses now, and later it may be used to pay for health care expenses into retirement!
Reasons to LOVE HSA
The HSA features a triple federal* tax benefit!
- Your contributions into the HSA are made on a pre-tax basis
- Funds in the HSA can be invested, and the interest and earnings grow tax free
- The distributions you take to pay for eligible health care expenses are tax-free
*Note, for California residents, contributions will be after-tax for state income tax purposes, and you will also not receive the same tax-free growth as provided at the federal level.
Eligibility
In order to contribute to an HSA, you must meet the following conditions:
- You’re enrolled in a High Deductible Health Plan (HDHP), Nick’s Restaurants new OA Managed Choice POS HDHP
- You aren’t covered as a dependent under a spouse’s non-HDHP plan
- Your spouse doesn’t have a general-purpose health care FSA
- You aren’t enrolled in any part of Medicare*, Medicaid, or TRICARE
- You haven’t received VA medical benefits within the past three months (unless for a service connected disability)
- You aren’t claimed as a dependent on another person’s tax return
* If you delay enrolling into Medicare, you can continue to contribute to an HSA, but you should stop contributing to your HSA 6 months before signing up for Medicare.
Annual Contribution Limits
Maximum contribution limits are set by the IRS. For 2025, the maximum annual contribution limit is $4,300 for Single coverage or $8,550 (per household) for Family coverage, which is any coverage other than Employee Only. An annual catch-up contribution of $1,000 can be made by individuals age 55 and older. Note, you can change your elected contribution amount on a monthly basis.
Use Your HSA
You’ll be issued a Health Benefits Debit Card by HSA Bank to use to pay for qualified health care expenses, but you can also reimburse yourself at any time online or via HSA Bank’s mobile app. There is no time limit to reimburse yourself, the funds just have to be contributed to the account first before you can use them. Any unused funds rollover year-to year and all funds are always yours to keep, regardless of your employment Status with Nick’s Restaurants.