Do I have to set up my HSA?
Typically, your HSA will be set up automatically after you enroll in an HSA medical plan option as a new employee. Fidelity will provide instructions on verifying certain information before opening your account. You must have an open account for your payroll contributions and XPO’s contributions to be deposited.
When can I access my HSA through Fidelity?
If you are new to the HSA, Fidelity will send you information on accessing your account shortly after your enrollment.
How will I receive XPO contributions?
XPO contributions to the HSA Plus option are made in two installments: 50% each in January and July. If you are a new employee, your XPO contribution will be prorated based on your hire date and made within the quarter of the effective date of your coverage. Your account must remain open to receive contributions.
If I change from Individual to Employee + One or More coverage during the current quarter, how is my quarterly contribution determined?
XPO’s contribution will be based on your coverage level and HSA enrollment status on the first day of the calendar quarter, and again on the first day of the third quarter. In this case, you will receive:
- $125 (1/4 of $500) in the current quarter and
- $250 (1⁄4 of $1,000) in the following quarter since you had Employee + One or More coverage on the first day of that quarter.
Are XPO's contributions to my HSA taxable?
Generally, XPO’s contributions are not taxable. If you are a California or New Jersey resident, XPO’s contributions to your HSA may be subject to some state taxes.
How much can I contribute to my HSA?
For 2022, you can contribute from $500 to $3,650 if you cover yourself or to $7,300 if you cover your family. If you are age 55 or older and not enrolled in Medicare, you can make additional “catch-up” contributions up to $1,000 in 2022. Your maximum contribution amount is offset by the amount XPO contributes to your HSA if you enroll in the HSA Plus medical plan.
How do I make contributions to my HSA?
You can contribute in two ways: When you enroll through myXPO, you can elect to contribute pre-tax money from your paycheck to your HSA. Your contributions will be divided over the pay periods in the year and deducted from your paycheck. Your account must remain open, and you must be actively employed to receive contributions to your account. You can also make non-payroll contributions through your online HSA. Non-payroll contributions are made post-tax but can be deducted at tax time.
How soon can I start using my HSA funds?
You will be able to start using your HSA funds after the first contribution (either your contribution or XPO’s contribution) posts to your account.
Can I change (increase or decrease) my HSA contribution during the year?
Yes. To change your contribution rate, click CONNECT WITH BENEFITS at the bottom of this page.
How will I access my HSA funds?
You have a few options. You can:
- Use the health care payment card from Fidelity to access your HSA funds
- Pay providers directly on the Fidelity website
- Pay for eligible expenses with any other form of payment and request a reimbursement from your account
Is the health care payment card a debit card?
No. It’s a prepaid card with a spending limit up to the balance of your HSA at that point in time. When paying for an eligible expense, swipe the card and select “credit.” There is no PIN (personal identification number) for your card, so be sure to keep track of your card to avoid misuse.
Where can I use my health care payment card?
The card can be used nationwide at qualified providers and merchants — pharmacies, doctors’ offices, vision centers and hospitals — wherever it is accepted. Visit Fidelity’s website for a list. Your card should be used only to pay eligible expenses.
What expenses can I pay for with HSA funds?
You can pay for a range of eligible expenses you and your covered family members incur in your health care plans, including doctor’s office visits, prescription drugs, dental and vision exams, contacts and glasses. Because HSA money is tax-advantaged, the IRS determines which expenses are eligible. See IRS Publication 969 for a complete list of eligible expenses.
What expenses don't qualify for tax benefits?
Examples include cosmetic surgery, health club memberships, teeth whitening and over the-counter medicines purchased without a prescription. For a complete list, see IRS Publication 502.
What happens if I use my HSA for an ineligible expense?
You will have to pay income taxes on the amount. If you are under age 65, you will also pay a penalty of 20%.
Do I need to keep the receipts when I use my HSA?
Yes. Always keep your receipts because the IRS may require you to prove the money was used for eligible expenses.
Can I also contribute to a Health Care FSA if I enroll in the HSA plan?
No. You can only enroll in the Health Care FSA if you elect the Basic PPO or Classic PPO medical option.
Can I use the HSA for my spouse and children if they are not covered under my plan?
Yes, for eligible health care expenses only if they are enrolled in another qualified high deductible medical plan. For your children, you can only use your HSA to cover their eligible expenses if you can claim them as a dependent on your federal tax return (you can still cover eligible children up to age 26 under your medical plan, regardless of tax dependent status).
Can I invest my HSA balance?
Yes. You can invest your balance in any investment option offered through Fidelity. Money you invest is subject to gains and losses based on your investment choices. Also, as with other investment accounts, your invested money may not be immediately available for withdrawal, and investment fees will apply. Visit the Fidelity website for details.
Do unused funds in an HSA roll over year after year?
Yes, the unused balance automatically rolls over year after year. You won’t lose money if you don’t spend it within the year.
If I leave XPO and have a balance in my HSA, do I have to keep my account with Fidelity?
No. You can transfer your balance to another HSA administrator or leave it with Fidelity. It’s your choice.
What happens to the money in my HSA after I turn age 65?
You can continue to use your account tax-free for out-of-pocket health care expenses. When you enroll in Medicare, you can use your account to pay Medicare premiums, deductibles, copays and coinsurance under any part of Medicare. You can also use HSA funds to pay for things other than medical expenses, but you’ll pay income taxes on those expenses.
Am I eligible for the HSA if I’m enrolled in Medicare?
You are not eligible to make contributions to an HSA after you have enrolled in Medicare. If you had an HSA before you enrolled in Medicare, you can keep it and continue to use your HSA to pay for eligible expenses.