How will I get the Workday contribution to my HSA?
Workmates who enroll in the Cigna or Kaiser Smart Plan as part of Annual Enrollment, and have set up their HSA with Fidelity, will see a portion of the Workday contribution deposited into their HSA each pay period beginning in January (24 pay periods).
Workmates who enroll in the Cigna or Kaiser Smart Plan midyear will see the Workday contribution to their HSA each pay period, following the month in which they set up their HSA with Fidelity. Workday HSA contributions are prorated.
Note: If this is your first year as a member of a Smart Plan, make sure you finished setting up your HSA with Fidelity; otherwise, you will not receive the HSA contributions from Workday.
Can I contribute a lump sum to my HSA at the beginning of the year?
Yes, you can contact Fidelity if you’d like to make one lump sum contribution directly to your HSA. Be careful, however, because there could be tax penalty implications. While Workday has safeguards that do not allow a workmate to exceed the calendar-year IRS maximum amount for HSA paycheck contributions, these safeguards do not extend to HSA contributions you make outside of your Workday paycheck deductions. The HSA contributions you make through payroll deductions, plus Workday contributions, appear in your HSA incrementally over 24 pay periods and cannot be allocated in one lump sum. If the total amount of your paycheck contributions, the contributions you make outside of Workday, and the Workday contributions over the course of the year exceeds the IRS limit, then your excess contributions will be subject to an IRS penalty.
We recommend that you consult with Northstar to review any tax implications. If you wish to proceed, contact Fidelity directly for next steps.
Can I change my HSA contributions midyear?
Yes. Most benefit plans allow midyear changes only if you have a qualifying life event, but HSAs are different. If you need to change your HSA contribution amount at any point during the year, you can do so by submitting an HSA Contribution Change event in Workday. Paycheck deduction changes will be effective the first of the month following the date you submit the event.