Each year at UC's open enrollment you have a chance to take advantage of one of the smartest ways to save. It’s the Health Savings Account (HSA) that comes with the UC Health Savings Plan, and it brings you triple tax advantages.1
Here’s how the HSA works—and why it matters.
GET TO KNOW THE HSA
Through UC's Retiree Health & Welfare benefits, you may have a chance to continue your UC-sponsored medical insurance. But that benefit pays only a portion of your insurance premiums and is only available under certain circumstances.
That’s where the HSA comes in. It’s an additional way to save for health care costs—now and in the future—and gives you substantial tax advantages.
Here are the details.
- You make pretax contributions to your HSA from your paycheck.
- UC contributes to your account, too. UC will contribute $500 for an individual or $1,000 for family. It’s like getting free money.
- You can invest your HSA contributions for the future.
- Your contributions, earnings, and distributions are tax-free if used for qualified medical expenses. That’s a triple tax advantage1 you don’t get anywhere else.
- There’s no use-it-or-lose-it rule. That means any contributions you don’t use will carry over from year to year.
- As a result, you can keep some of your HSA money for the future and use some to pay qualified medical expenses now.
If you enroll in the UC Health Savings Plan2 during Open Enrollment, your participation is effective January 1 of the following year and a HealthEquity HSA will automatically be opened for you.
GET THE FULL PICTURE
Open enrollment is your opportunity to review your UC benefits and make sure you have the best coverage for your needs in the coming year. Take the time to review all your options, then select the ones that support your physical and financial wellness.