HR, Payroll and Benefits News

Health Savings Account: Contributions and Investment Options

Your Contributions
If you are enrolled in a high deductible health plan (HDHP) through the UW System, your annual maximum contribution amount* to your Health Savings Account (HSA) differs based on your level of coverage (single vs. family), your age (younger or older than age 55) and how many months of the year you are eligible for the HSA.

Reminder: You may change your per paycheck contributions at any time throughout the year!

*If you are unsure what your annual maximum contribution amount is, contact your tax advisor. Penalties may apply if you contribute more than the calendar year maximum to your HSA.

Your Investment Options
Once you have a minimum balance of $1,000 in your HSA, you can invest contributions above that minimum balance. There are several investment options available. Take advantage of the investment options to use your HSA as another vehicle to save for retirement and earn a higher rate of return. The minimum balance of $1,000 ensures that you always have access to a cash balance to pay for qualifying medical, dental and/or vision out-of-pocket expenses.

To get started, log into your myCYC mobile app or online portal and indicate how much you would like to transfer to the available investment options.

Note: You may set-up your account so that money greater than the minimum balance requirement will automatically transfer into your investment account. You determine the amount that you would like to invest vs the amount that you have access to with your HSA debit card.

Reminder: Review the HSA frequently asked questions to help you get the most out of your account!

Source: UW System Human Resources