Health Savings Account (HSA)

Baylor employees who elect in the High Deductible Health Plan for medical insurance coverage can choose to elect into a Health Savings Account (HSA). A health savings account (HSA) is a tax-exempt savings account into which both the employer and employee can deposit money (up to an annual limit specified by the IRS) on a tax-preferred basis.

NOTE: If, for whatever reason, you are enrolled in an HSA-qualified HDHP for a partial year, the maximum HSA contribution for that year must be pro-rated; meaning you must be in proportion to the number of months you were covered by the HDHP.

Contribution Information

2024

NOTE: Employees over the age of 55 may be eligible to make a $1,000 catch-up contribution.

2024

Eligibility Requirements

• Employees who wish to participate in an HSA must be enrolled in the High Deductible Health Plan (HDHP)
• Employee cannot be Medicare or Tricare eligible
• Employee cannot be claimed as a dependent on another person's tax return
• Employee cannot be enrolled in any other non-qualified medical plan
• Employee cannot be covered by spouse's Healthcare Flexible Spending Account (FSA)
• Employee cannot have received veteran's health benefits, with the exception of service-related disability

Limitation Information

• Changes to HSA elections may be modified or revoked anytime during the plan year without having a change in status.
• Any balance left over at the end of the year stays with the individual, available regardless of job changes or retirement.
• Adult Children: An adult child must be a tax dependent in order for their medical expenses to qualify for payment or reimbursement from a parent's HSA. If account holders can't claim a child as a dependent on their tax returns, then they can't spend HSA dollars on services provided to that child.

HSA Related Topics & Resources

• HSA Bank Account
• HSA FAQs
• HSA Investments