A Health Savings Account (HSA) is a tax-advantaged savings account that helps you save for and pay for health care expenses. It is yours to keep, always—even if you change jobs or retire. The HSA is paired with the Consumer Directed Health Plans (CDHPs) offered through Anthem and Kaiser. The HSA helps protect you financially from predictable—or unexpected—health care costs.
The HSA and Health Care Flexible Spending Account (FSA) are similar—both accounts let you set pretax money aside that you can use to pay eligible health care expenses. But there are some important differences:
- Lam contributes to your HSA.
- With an HSA, you can contribute at any point in the year and change your contribution amount whenever you want to, even after you have a major health expense. For example, if you break your ankle while snowboarding and have unexpected medical expenses, you can add pretax money to your HSA after you get the emergency room bill. To set up or change your contribution, call the Benefits Help Desk at 1-877-291-9494.
- Since your HSA is funded through the year by paycheck contributions, if you’re concerned about covering big expenses at the beginning of the year, you can front-load your contribution early in the year by calling the Benefits Help Desk at 1-877-291-9494. For example, if you’re expecting a baby in early February, you can make larger contributions to your HSA in the early part of the year to cover the anticipated maternity expenses, then reduce your HSA contributions later.
- You can invest the money in your HSA for the potential to grow your savings.
- All the money in your HSA rolls over at the end of the year. The maximum rollover for an FSA is $500.
- Your HSA is triple tax advantaged. That means you pay no federal taxes on your contributions, withdrawals for qualified medical expenses, or the interest or investment earnings as your savings grow. (Note: If you live in Alabama, California, or New Jersey, your contributions and earnings will be subject to state tax.)
- Your HSA is always yours, even if you leave Lam.
- It's easy to start or change your contribution any time. Call the Benefits Help Desk at 1-877-291-9494 or log in to the benefits enrollment website and select “Make a Change to My Benefits.” Choose the Life Event “HSA Election/Changes” and the Event Date. Then click “Continue” and follow the prompts.
The IRS sets limits on how much you can contribute to your HSA each year, combined with Lam’s contribution.
|Individual Coverage||Family Coverage|
|IRS Contribution Limit||$3,500||$7,000|
|IRS Contribution Limit (employees age 55 or older)||$4,500||$8,000|
When you enroll in a CDHP through Lam Research, your HSA will automatically be opened for you at HSA Bank, the banking partner for WageWorks. You will receive a Quick Start Guide from WageWorks and a Welcome Packet from HSA Bank. Once your HSA account is established, contributions from Lam Research—and from you, if you choose—will start being deposited.
To find your HSA balance at any time, log in to WageWorks and scroll down to the HSA Bank box to see your account balance. For detailed activity, select the HSA Account Statement.
Accessing Your HSA Funds
You have two ways to access the money in your HSA:
- Pay Me Back: You can request a payment from your HSA through WageWorks. Although you do not need to submit receipts when you are reimbursing yourself from your HSA balance, you should save your receipts for tax purposes. WageWorks does not monitor reimbursements, as they are required to do with the Health Care FSA. Therefore, to avoid any tax penalties, you need to make sure your reimbursements from your HSA are for qualified health care expenses.
- Any amount you spend from your HSA on nonqualified expenses will be considered part of your taxable income.
- You will also owe a 20% penalty on that amount unless you reach age 65, become disabled, or die.
- Debit Card: You will receive a Visa debit card from WageWorks, which you may use to pay providers directly for eligible expenses.
- While you are actively employed, Lam Research pays the monthly service charge associated with your HSA.
- Just as with a checking account, if you overdraw your HSA, you will be charged a nonsufficient funds (NSF) fee of $30 per occurrence.
- There is a fee of $0.75 per paper statement, and you will automatically receive paper statements. To avoid this fee, you must update your statement preference with HSA Bank:
- Log in to WageWorks
- Select HSA Account
- Select Investment Options to log in to the HSA Bank site
- Select Profile
- Select Statement Delivery Preference
- Set your preference to FREE monthly e-statements