Health Savings Accounts

After enrolling in a Consumer Directed Health Plan, you have access to a health savings account (HSA). With the HSA, you save pre-tax dollars and can roll over your balance from year to year to earn tax-free interest. The Company contributes to your HSA too, depending on which medical option and level of coverage you elect when your HSA is opened, and if you complete the wellness requirements. You can spend your money for eligible health care expenses when you need it—in an emergency, when money is tight or in retirement. With an HSA, you’re in control of your health care costs.

The Company's tax–free contribution applies on a federal tax level, but may vary by State.

To participate in an HSA, you first need to elect a CDHP medical option and elect to participate in the HSA during the enrollment process. After Payflex confirms the accuracy of your personal information–such as your name, address, and Social Security number—your HSA is opened.

Watch your mail for the HSA Welcome Kit from Payflex/Citibank, which will include your HSA debit card, or for information on how to set up your account so you can start receiving any applicable Company contribution and/or Wellness Rebate. Also, don't forget to designate a beneficiary for your HSA. 

You decide how much you would like to contribute to the HSA (up to IRS-defined limits) and you may change your contribution amount at any time. The Company contribution will be deposited into your account in the month your HSA enrollment is effective. For HSA enrollments or changes made after July 1, 2016, the Company contribution will be deposited pre-tax in the month your HSA enrollment is effective.  

The Company's tax–free contribution applies on a federal tax level, but may vary by State.

An HSA is a unique, tax-advantaged account:

  1. Your money, always
    • The money in your account rolls over from year to year. You won’t lose your unused balance at the end of the year like you would with a flexible spending account (FSA).
    • Your savings and earnings are always yours. Your HSA balance is yours to keep even if you change medical plans or leave Toys“R”Us.
  2. Triple tax advantages
    • No federal tax on deposits. Your payroll contributions go into your account before taxes are withheld, lowering your taxable income. The Company's tax–free contribution applies on a federal tax level, but may vary by State.
    • No tax on earnings. Interest and investment earnings grow tax-free, unlike a traditional IRA, where investment earnings are taxed.
    • No tax on withdrawals. The money you withdraw—today, tomorrow or in the future—to pay for eligible health care expenses is not subject to taxes.

Rate This Page

Can’t find what you’re looking for? Use our search feature.