When are the HSA Advance funds available?

Your HSA Advance funds will be available for eligible expenses according to your employer's policy. Typically, they will be available on the first day of your Plan Year.

How does HSA Advance work?

If you make a payment for an eligible expense using your Benefits Card or through your Member Account, and you do not have enough funds in your HSA or investment account(s) to cover the expense, HSA Advance will automatically advance funds, up to your advance limit, at the point of payment.

Likewise, if you pay for an eligible expense with personal funds and request reimbursement from your HSA, funds will be advanced at the time of reimbursement. The amount available will be determined based upon your annual contribution amount, and your employer’s policy regarding this benefit.

NOTE: You must use your HSA available balance, as well as funds in your HSA investment account, before HSA Advance funds are applied to the expense.

Do I have to sign up for HSA Advance?

No. If your employer allows HSA Advance, it is included automatically as part of your HSA. You will see your available HSA Advance funds in your online Member Account.

What is HSA Advance?

HSA Advance is a special feature of certain Health Savings Accounts (HSAs) if your employer’s policy allows it. HSA Advance allows you to access future HSA funds upfront, before they have been contributed. For example, if you have claims that are greater than the balance of your HSA Account (including investment account(s)), you can access HSA Advance funds to help cover the cost. It works similar to a bank’s overdraft protection but doesn’t accrue interest or require additional fees. The amount available in the HSA Advance fund is determined based upon your annual contribution amount and your employer’s policy regarding this benefit.

How does this carryover option impact my Health Savings Account (HSA), Flexible Spending Account (FSA) and Health Reimbursement Arrangement (HRA) interaction?

If you are covered by a traditional, general-purpose FSA or HRA, you are not eligible to contribute to a health savings account (HSA). Below we discuss the impact of the Grace Period and carryover on the HSA’s eligibility. 

Grace Period Impact on HSA Eligibility: A participant with a general-purpose FSA that contains a grace period and has a year-end balance is ineligible for HSA contributions until the first calendar month after the grace period ends. The same is true for the participant’s spouse, if the spouse’s medical expenses are eligible for reimbursement from the general-purpose Health Care FSA.  

Carryover Impact on HSA Eligibility: The adverse effect of members not being able to enroll in an HSA if they have funds remaining at the end of the Plan Year can be avoided if the plan allows employees to decline or waive their carryovers prior to the beginning of the next Plan Year. An employee who declines or waives a general-purpose Health Care FSA carryover under the plan's terms may contribute to an HSA during the next Plan Year if he or she is otherwise HSA-eligible. Another way that employers can help employees avoid the adverse effect on HSA eligibility of a general-purpose Health Care FSA carryover is to amend their cafeteria plans to allow or require that the unused amounts be carried over to any of the following HSA-compatible Health Care FSAs (i.e. a limited-purpose FSA).

What if I contribute more than the maximum allowed to my HSA?

You are allowed to withdraw the excess contributions until April 15 of the following year and pay no penalties. After April 15, the excess funds are subject to taxes and penalties.

Can I contribute stock to my HSA?

No, only cash contributions can be made to your HSA.

What are "catch-up" contributions?

Catch-up contributions are allowed contributions to your HSA beyond the annual maximum limit. You are eligible for catch-up contributions if you are age 55 or older. Catch-up contributions are allowed the calendar year you turn 55 as long as you are enrolled in an HDHP on or before December 1.

What is the maximum amount I can contribute to my HSA?

There are federal maximum amounts an individual and family can contribute to an HSA each year. Check with your plan administrator or Human Resources department for this year's maximum.