How It Works
You may contribute to your HSA up to the annual IRS limits:
2023 Annual HSA Contribution Limit
- Individual coverage: $3,850
- Family coverage: $7,750
- Catch-up contributions: If you’re age 55 or older, you may contribute an additional $1,000 annually until you become eligible for Medicare.
There are two ways to contribute to your HSA:
- Set up automatic paycheck contributions. You elect an annual amount, and each month, a prorated amount will be deducted from your paycheck before taxes and contributed to your HSA. (You may change your contribution amount at any time during the year.)
- Make a lump-sum contribution. At any time in the year, you may contribute a lump-sum to your account. You may want to consider a lump-sum contribution if you want money available at the beginning of the year or, find yourself with an unexpected health care bill, and want to contribute enough to cover the cost of the service. When you make a lump-sum contribution, you receive the tax savings when you file your taxes for that year. There is no limit on the number of lump-sum contributions you make each year (as long as you do not exceed the IRS contribution limit). Lump-sum contributions can be made up until April 15 of the following year. You may contribute by payroll deductions, however, only until December 31 of the current year.
To set up your contributions:
- Type benefits in your Morgan Stanley browser.
- Click Health Savings Account.
- Click Make Contribution under Contributions.
HSA funds are available as soon as the contributions are made to your account. Use your HSA debit card to pay for eligible health care expenses, or pay expenses out of pocket and reimburse yourself from your HSA later. Alternately, you may file a claim for reimbursement online.
Remember to save any itemized receipts or Explanation of Benefits (EOB) statements to verify your claims. The HSA site includes a “shoebox” feature that lets you upload receipts for eligible health care expenses and store them until you’re ready to be reimbursed using your HSA dollars, which can be now or down the road.
Use funds now or save them for future health care needs, even into retirement. Any unused HSA money rolls over year to year — it’s yours to keep, even if you leave the Firm.
At age 65, you can withdraw your HSA funds for non-qualified expenses at any time, although they are subject to regular income tax. You can avoid paying taxes by continuing to use the funds for qualified medical expenses.
If you are age 65 or older, HSA funds may be used to pay premiums for Medicare Parts A, B, C or D, Medicare HMO and employee premiums for employer-sponsored health insurance.