HSA Contributions and Investments

2020 and 2021 Plan Year Information

How to Contribute to Your HSA

There are two ways you can contribute to your HSA:

  1. 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 update your contribution election at any time during the year.
  2. Make a one-time lump-sum contribution. At any time in the year, you may contribute a lump-sum to your account. Since your paycheck contributions are deposited into your account month-by-month, it can take a long time to accumulate finds in your HSA. 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 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.

Regardless of which way you choose to contribute to your HSA, you are responsible for making sure your total annual contribution does not exceed the annual IRS limit.

To set up automatic contributions or make a one-time contribution:

  1. Type benefits in your browser.
  2. Click Health Savings Account.
  3. Click Make Contribution under Contributions.

 

IRS Contribution Limits

With IRS limits that are significantly higher than for Flexible Spending Accounts, you can maximize your tax savings by making the full contribution amount:

  • Individual coverage:
    • 2021: $3,600
  • Family coverage:
    • 2021: $7,200
  • If you are age 55 or older, you may make an additional catch-up contribution of $1,000 annually until you become eligible for Medicare.

Investing Your Health Savings Account Dollars

When your HSA account balance reaches $500, you can choose to invest any funds in your account over that amount in one or more available investment funds. Any earnings on the funds in your HSA are distributed tax-free if used to cover eligible health care expenses now or at any time in the future. Note that investment funds may fluctuate with market conditions and that past performance is no indication of future results. It is possible that the market value of your HSA will decrease.

See the HSA Investment options.

How to Invest Your HSA Funds

You may invest any funds in your account that exceed $500. To begin investing, follow these steps:

  1. Type benefits in your browser.
  2. Click Health Savings Account.
  3. Click Manage Your Investments under Balances. You should be automatically transferred to the UMB website.
  4. Click Log in to HSA Saver.
  5. Click Manage My Investments.
  6. You can make a one-time contribution or set up automated investments by switching Monthly Automatic Investment to On in the top right corner.