The Health Saving Account (HSA) is a pretax savings account for healthcare costs now and in the future for individuals enrolled in the Consumer Directed Health Plan (CDHP). Inspira Financial, formerly Payflex, administers the HSA.The HSA is an IRS regulated plan. Individuals who are contributing to the HSA are strongly encouraged to review “A Consumer’s Guide to the Health Savings Account (HSA)” for important rules, exclusions, and tax reporting information.

Features

• Princeton will contribute $200 for individual coverage and $400 for employee and children, spouse, or family coverage into the employee’s account in a lump sum for individuals who enroll in the HSA.
• Contributions and earnings are never taxed provided they are used to pay for qualified healthcare expenses. 
• Contributions can be invested in several fund options if the balance is at least $1,000.
• The funds are retained, even if participants change health plans, no longer contribute, or leave Princeton. Funds are not lost, there is no “use-it-or-lose-it” rule that applies to the Healthcare Flexible Spending Account (HFSA).
• Participants can access their HSA account through Inspira Financial’s website. To set up an online account, participants need to provide their Princeton benefits ID number located in HR Self Service under Benefit Details.

Rules

• Princeton’s contribution will be made in one lump sum and will be based on the individual’s coverage level as of January 1, or the effective date of the HSA enrollment, if later. If an individual changes coverage levels during the year, e.g., changes from employee only coverage to family coverage as a result of a qualifying event, an additional $200 contribution will be provided by Princeton into the HSA. At no time will an individual receive more than $400 from Princeton into their HSA in a calendar year.
• Participants or their spouses cannot contribute to a healthcare flexible spending account (FSA).
• Participants cannot be covered by a non-qualified CDHP medical plan, e.g., a spouse’s non-CDHP.
• Participants cannot be enrolled in Medicare. Individuals who are Medicare eligible and considering retirement should review “A Consumer’s Guide to the Health Savings Account (HSA)" for important information. 
• New hires and those enrolling in or changing their CDHP coverage during the year should review the HSA Road Rules to learn how these events impact their HSA contributions; see the “Last-month Rule” and “Proration” sections for details.
• Participants not eligible to contribute to an HSA per IRS regulations may enroll in the HFSA.
• For a list of eligible and ineligible HSA expenses visit Inspira Financial.

2023 Contribution Limits

• Up to $3,850 for individual coverage
• Up to $7,750 for employee and children, spouse, or family coverage
• Individuals 55 or over may contribute an additional $1,000 annually

2024 Contribution Limits

• Up to $4,150 for individual coverage
• Up to $8,300 for employee and children, spouse, or family coverage
• Individuals 55 or over may contribute an additional $1,000 annually

Qualified Healthcare Expenses

• Most medical, dental, and vision care and services; prescription drugs; and premiums paid for COBRA, long-term care, and retiree medical and prescription insurance, including Medicare premiums.
• Expenses for a civil union or domestic partner not reimbursable.
• Complete list available in IRS Publications 969 and 502.

Eligibility

Most benefit-eligible employees enrolled in the CDHP may be eligible to elect this plan. To receive the Princeton contribution participants must be an active employee and enroll in the HSA.

Enrollment

Election of or changing contribution amount of this benefit is available at any time if enrolled in the CDHP.