What you need to know
If you’re smart enough to enroll in the Cigna Smart Plan or Kaiser Smart Plan, you should be rewarded for your good judgment. That’s where the Health Savings Account (HSA) comes in. An HSA is a tax-advantaged savings account that’s yours—all yours!—to use toward current or future health care expenses. And whether or not you contribute your own pretax money to your HSA, Workday chips in cold, hard cash.
- Free $$ from Workday that covers 75% of your annual deductible—$1,125 for single coverage and $2,250 for other coverage. (If you enroll mid-year, the Workday contribution to your HSA will be reduced.)
- Save up to $3,850 (single) or $7,750 (family) in 2023, including the contributions from Workday. Contribute up to $1,000 more if you'll be age 55 or older in 2023.
- No taxes on your HSA contributions, withdrawals, or investment earnings as long as the money is used to pay for qualified expenses such as prescriptions, doctor visits, and X-rays.
- The freedom to choose how much—or little—to contribute to your HSA
- Your balance rolls over from year to year; there is no use-it-or-lose-it rule.
- You can invest your HSA money so it grows over time, much like your 401(k).
- Money for eligible health care expenses that you can use now or save for later—and it’s yours to keep, forever!
Triple tax advantages
Yeah, we know talking about taxes isn’t fun. But talking about tax savings is, and that’s the best part of the HSA. You get to save in three amazing ways:
- HSA contributions (up to the IRS limits) are 100% deductible from your federal gross income, which means your taxable income will be lower. And almost all states consider HSAs to be tax-deductible, except California and New Jersey.
- You can invest HSA money so it grows over time, and the interest will not be subject to future income tax if used for qualified medical expenses.
- As long as your HSA withdrawal is used for a qualified medical expense, it’s not subject to federal income tax.
Plenty o’ perks!
Manage your HSA account online at Fidelity, or on the go, with these easy-to-use features:
- HSA debit card: Use your debit card to pay for supplies that are not covered by your medical plan.
- Bill pay: Make online payments to health care providers.
- HSA checkbook: Pay expenses directly from the funds available in your HSA.
- Reimbursement: If you pay out of pocket for a qualified expense, you can get reimbursed from your HSA at any time, without penalty.
- Investments: You can invest your HSA money in a wide variety of investment opportunities, including mutual funds, stocks, and bonds.
Don’t leave money on the table
Be sure to set up your HSA so you don’t miss out on Workday's contributions. It’s as easy as 1-2-3:
- Enroll in the Cigna Smart Plan or Kaiser Smart Plan.
- Elect the HSA (even if you’re not contributing your own money) during enrollment.
- After the first of the month following your enrollment in the plan, complete the HSA setup process with Fidelity. Your account must be opened to receive Workday contributions. Workday contributions will be credited to your HSA each pay period.
A gift as great as an HSA doesn’t just fall into your lap. To be eligible, you have to meet all of these criteria:
- Be enrolled in the Cigna Smart Plan or Kaiser Smart Plan
- Not be covered under another medical insurance plan that is not HSA-eligible
- Not have a Health Care Flexible Spending Account (FSA)
- Not be enrolled in Medicare
- Not be claimed as a dependent on someone else’s tax return
To learn more, check out the Fidelity HSA basics 2023 or the more-detailed Fidelity HSA reference guide.
For questions about new or replacement debit cards, please contact Fidelity for assistance with your account. Please note that debit cards do not expire each year, so you should hang onto them until replaced.