Money :: Health Savings Account

Health Savings Account

If you enroll in the Basic HSA or HSA Plus plan, you’ll have access to a triple-tax advantaged account called a Health Savings Account (HSA) to help you pay for eligible health care expenses. There’s no “use-it or lose-it rule,” and you can even use it to save for medical expenses in retirement. Review the table below. Please keep in mind that some state tax regulations vary from the federal regulations described here.

HSA Contribution Minimum

If you like the convenience of contributing to your Health Savings Account (HSA) through payroll deductions, you’ll need to contribute a minimum of $500 for the year.

  • If your 2020 contribution was less than $500, you must make a new election for 2021.
  • If your 2020 contribution was $500 or more, your election will roll over to 2021.
 Health Savings Account (HSA)
How does it work?An HSA allows you to set aside pre-tax dollars and use them to pay for eligible health care expenses for yourself and your tax dependents. You can also invest the money in your account and let it grow (similar to a 401(k) plan) so you can save it for future health care expenses.
Who contributes?Basic HSA: You only
HSA Plus: XPO and you
How much does XPO contribute?Basic HSA: Nothing
HSA Plus: $500 for Individual or $1,000 for Employee + One or More
XPO contributes 50% in January and 50% in July. The amount is prorated based on when you become eligible for benefits or have Qualifying Event changes.
How much can I contribute?Basic HSA: Individual coverage: From $500 to $3,600 per year (2021 IRS limit)
Family coverage: From $500 to $7,200 per year (2021 IRS limit)
HSA Plus: Individual coverage: From $500 to $3,100 per year
Family coverage: From $500 to $6,200 per year
Basic HSA or HSA Plus: If you’re age 55 or older, you can make an additional “catch-up” contribution of $1,000 to your HSA per year.
What can the money be used for?Eligible health care expenses include:
  • Medical
  • Prescription drugs
  • Dental
  • Orthodontia
  • Vision
Any HSA money spent on ineligible expenses is taxable, and you’ll have to pay a 20% tax penalty if you are under age 65.
Can I roll over unused money?Yes. You can roll over any unused money in your account for the next year. There is no “use-it or lose-it” rule.
How do I pay for care?Once you enroll, XPO will set up your account with Fidelity. When you need to pay for eligible health care expenses, you can either use the prepaid health care payment card from Fidelity, or you can pay for the expenses and reimburse yourself through Fidelity’s website. XPO partners with Fidelity to manage your account. You will view and manage your HSA money through Fidelity.
Can I take the HSA with me if I leave XPO?Yes. You own the account and can use the money any time.

 

Learn about the Health Savings Account

Visit Fidelity today to learn the top three reasons to consider an HSA medical plan, watch a video to see if an HSA could be right for you and tap into a wealth of resources including eligible expenses and more.

Contacts

Fidelity HSA