Health Savings Account (HSA)
A Health Savings Account (HSA) is an individually owned, tax-advantaged checking account that gives you the ability to save for future medical expenses or pay current ones. An HSA allows you to put money away and use the funds for qualified medical expenses, like deductibles, copayments, coinsurance, and more. You’re eligible to contribute to an HSA when you’re covered by Butler’s HDHP medical plan. Additionally, Butler will contribute to your HSA account on each pay. This amount is prorated based on hire date.
2025 HSA Contributions
| Butler University Contribution | Max Employee Contribution* | 2024 IRS Max Contributions | |
|---|---|---|---|
| Individual | $750 | $3,550 | $4,300 |
| Family | $1,500 | $7,050 | $8,550 |
| 55+ Catch Up | NA | $1,000 | $1,000 |
To be eligible for an HSA you:
- Must be currently enrolled in an HSA-qualified health plan (HDHP)
- May not be enrolled in any other non-HSA qualified health plan
- May not be claimed as a dependent on another person’s tax return
- May not be enrolled in Medicare, Medicaid or Tricare
- Must not have used VA medical benefits in the past 3 months, with the exception of preventative services or treatment for a service-connected disability
To open an HSA account:
- Go to hsa.umb.com
- Click on Enroll for a New HSA
- Enter THA0001-143674 in the Enrollment Verification #
- Click on Open My Account Now
For a list of IRS-approved qualified expenses, please review Publication 502.
HSA and Medicare
It is important to understand how Medicare may impact your HAS before electing a contribution amount or even enrolling in the HDHP medical plan. Once you are enrolled in Medicare, you are not legally allowed to contribute to your HSA.
If you met the requirements to qualify for Medicare part A but have not yet applied, you may continue to contribute to your HSA past age 65 and postpone applying for Social Security and Medicare until you stop working. There is no penalty for this delay if you maintain your current health coverage.
If you are entitled to Medicare because you signed up for Medicare Part A at age 65 or later and have applied for Social Security Benefits you cannot continue to contribute to an HSA. You can continue to withdraw any remaining funds in your account.
If you are entitled to Medicare because you signed up for Medicare Part A at age 65 or later but have not yet applied for Social Security Benefits, you can withdraw your application for Part A. There are no penalties, and you are free to reapply for Part A at a future date. This will allow you to continue to contribute to the HSA until you decide to reapply for Part A.
If you do apply later for Social Security or Medicare benefits, the coverage will be retroactively applied up to 6 months depending on how long your benefits were delayed. This may affect how much you can contribute to your HSA.
If you have applied for, or are receiving, Social Security Benefits you are automatically entitled to Part A and you cannot continue to contribute to an HSA account. You can continue to withdraw any remaining funds in your account.