HSA and CBC
Your Health Savings Account (HSA) coupled with a High Deductible Health Plan (HDHP) can help you save money on your health care expenses. By choosing the HDHP, you can significantly save on your health care premiums.
How Does a HDHP Work?
HDHPs offer protection from catastrophic or major medical expenses. These plans have a cap on how much you pay out-of-pocket and cover preventive services to keep you healthy. HDHPs are less expensive compared to comprehensive plans.
How Does Your HSA Work?
When you have an HDHP, you can set aside money along with CBC contributions in a tax-free account to pay your out-of-pocket costs. Once you meet your deductible, your health plan kicks in. Any money left over in your HSA remains yours, allowing you to grow your funds over time.
Here are a few benefits of an HSA:
- Deposits are tax-free and your money grows tax-free.
- You decide how to invest and grow your money.
- Contributions to your HSA by Central Bancompany are excluded from your gross income.
- Unused funds rollover from year to year.
- You can withdraw funds for qualified medical expenses anytime, tax-free.
- When you reach age 65, you can withdraw your money without penalty as you would for a traditional IRA; you just have to claim it as income. It may still be used for eligible medical expenses tax-free.
The money in your HSA is always yours – there is no, “use it or lose it” rule. All balances in your HSA are fully vested and remain in your account until spent. The money is yours even if you change jobs or health plans. With an HSA, you are in charge. You decide how much and when to contribute and whether or not to invest some of your savings for greater potential long term growth.
Contributions to your HSA
Changes to your HSA payroll deduction contribution may be done at any time, by following these steps:
- Visit Self Service
- Select the Benefits tab
- Declare a Life Event from the home page
- Select “ChangeHSAEvent” from the drop down
HSA Annual Contribution Limits for 2022
|CBC Annual Contribution||$20.83/pay period
|Employee Potential Maximum Contribution||$3,100||$6,200|
|IRS Allowable Maximum Contribution
Those age 55 and older may make an additional $1,000.00 catch-up contribution. CBC’s contribution is deposited into the HSAs each pay period. Contributions are prorated for subscribers who enroll or change their level of coverage in the HDHP during the plan year.