What is an HSA?

A Health Savings Account (HSA) is a tax-advantaged savings account designed to help you save and pay for qualified medical expenses. It is available to employees enrolled in the High Deductible Health Plan (HDHP).

The Health Savings Account is an account set up by you. It allows tax free withdrawals to pay for qualified medical expenses. HealthEquity is Elon’s HSA administrator. A Health Savings Account is an account you can contribute to on a pretax basis, usually through payroll deductions. The money in your HSA account is 100% vested and earns interest tax free.

Benefits of an HSA

  • Tax Savings: Contributions to your HSA are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.
  • Long-term Savings: Unused funds roll over year-to-year, and the account stays with you even if you change jobs or retire.
  • Flexibility: Use HSA funds for a wide range of qualified medical expenses, including doctor visits, prescriptions, dental care, and vision care.

How It Works

Eligibility: To open an HSA, you must be enrolled in the HDHP.

Who is eligible to participate in a Health Savings Account?

Under IRS guidelines, you must meet the following to enroll in an HSA:

  • Be covered under a High Deductible Health Plan
  • Not covered under other health insurance
  • Not enrolled in a Medical Flexible Spending Account (FSA) at all during the plan year or covered by a spouse’s FSA
  • Not enrolled in Medicare or Tricare
  • Not another person’s dependent

Exclusion: If you elect Plan C with the HSA, you cannot enroll in the Medical FSA.

Contributions: You can contribute pre-tax dollars to your HSA via payroll deductions.

Using Funds: You can use your HSA funds to pay for qualified medical expenses directly or reimburse yourself for out-of-pocket costs.

2025 Contribution Limits

  • Individual Coverage: $4,300
  • Family Coverage: $8,550
  • Catch-Up Contribution (age 55+): Additional $1,000

Important Notes

  • Elon University Annual Contribution: For 2024, the university will fund the HSA with an annual contribution of $500 for individual coverage and $1,000 for family coverage (HSA contributions are prorated for new hires).
  • 2024: You may contribute to an HSA up to the 2024 annual IRS limit (including employer contributions) for individual ($4,150) or family coverage ($8,300). Plan participants 55 years old and older may make an additional ($1,000) catch-up contribution.
  •  2025: You may contribute to an HSA up to the 2025 annual IRS limit (including employer contributions) for individual ($4,300) or family coverage ($8,550).
    • Individual Health Savings Account Contribution limits: $4,300 minus Elon University’s contributions of $500 equals $3,800 maximum for individuals (exception: catch-up allows an additional $1,000 for those age 55 and older).
    • Family Health Savings Account Contribution limits: $8,550 minus Elon University’s contribution of $1,000 equals $7,550 maximum contributions for families (exception: catch-up allows an additional $1,000 for those age 55 and older).
  • Plan participants 55 years old and older may make an additional ($1,000) catch-up contribution.
  • Calculations: When calculating your annual contribution maximum, be sure to subtract the University’s contribution. You own your HSA and the account balance rolls over year-to-year.
  • Contact: For more information, please contact HealthEquity at 1-877-713-7682 or www.myhealthequity.com.
  • Service Limitations at Faculty/Staff Health & Wellness Clinic: Due to IRS requirements of a High Deductible Health Plan, if you elect to participate in Health Plan C with the HSA, the services you can receive at Elon University’s Faculty/Staff Health and Wellness Clinic may be limited and a $40 copay may be charged based on Plan C cost guidelines. Please contact their office at 336-278-5569 if you have any questions about your eligibility status.