Health Savings Account (HSA)
When you enroll in a Healthy Focus medical plan, you have the option to open a Health Savings Account (HSA). You can contribute pretax dollars to the HSA up to the annual IRS contribution limit. You can use the HSA to pay for eligible health care expenses — tax free! The dollars that you contribute will roll over from one year to the next so you can grow your HSA balance to pay for future health care expenses.
For 2019, the maximum contribution for individual coverage is $3,500 and the maximum for family coverage is $7,000. For 2020, the maximum contribution for individual coverage is $3,550 and the maximum for family coverage is $7,100. Remember, Leidos may make an automatic contribution to your HSA and that amount is included in the maximum amount you can contribute.
If you are age 55 or older, you can contribute an additional $1,000 in catch-up contribution directly with HealthEquity. You can contact HealthEquity for more information or by phone at 1-844-373-6981.
Making Changes to your HSA Contributions
During the plan year, you may want to make changes to the amount you contribute to your HSA. You may want to:
- Put more money into your HSA to make sure you have enough money in your account to pay for an eligible expense
- Take advantage of the investment features of the HSA to build savings for health expenses in the future, or
- Reduce the amount you contribute
Whatever the reason, you can increase or decrease your HSA contribution at any time. Log into the Human Resources System, Workday, to change your contribution amount.
Health Savings Account FAQs
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You must be enrolled in a Healthy Focus medical plan. You cannot be claimed as a dependent on anyone else’s tax return, covered by any other non-CDHP medical insurance or account, such as TRICARE, your spouse’s HMO, POS or PPO medical plan, Medicare Parts A or B or a traditional Health Care FSA.
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Leidos may make an automatic contribution to the HSA if you are enrolled in the Healthy Focus plan, and your annual salary is $150,000 or less. The contribution will be based on your annual salary and eligibility date and will be made in equal installments on a biweekly basis.
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Use the HSA to pay eligible health care expenses. Visit healthequity.com for a list of eligible HSA expenses. This includes medical and prescription drug expenses, as well as dental and vision expenses that qualify as tax-deductible through the IRS but aren’t paid by the health plan.
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HSAs are very unique in that you can set aside money in your HSA on a pretax basis, up to an annual limit. You can grow the money tax free. In fact, when your balance reaches $100, you can invest your HSA dollars to grow the funds for future healthcare expenses. Finally, you can use the HSA dollars for eligible healthcare expenses tax-free. That's a triple tax advantage! Please note that tax deductibility is for federal taxes and tax treatment varies by state.
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The decision to use the account or pay with other money is yours each time you receive care. If you don't use all the funds in your HSA by plan year end, any unused balance rolls over to the next plan year. This means any unused dollars you or the Company contributes can be used for eligible healthcare expenses during the current plan year or future years — even during retirement.