Health Savings Account (HSA)

HSA Overview

Montgomery County ESC offers a Health Savings Account to any employee enrolled in the High Deductible Health Plan and is eligible according to the IRS rules and regulations. This is a pre-tax savings account you can contribute money to directly from your paycheck. These savings can be spent on eligible expenses or saved until you need to use them. In 2020 the IRS has relaxed the list of eligible expenses to now include over-the-counter items such as, menstrual care, antacids, anti-inflammatories, etc. 100% of these funds roll over year to year, and they stay with you even if you make a career change. You will be responsible for tracking all receipts and expenses you use your HSA funds on for at least 7 years. If you are ever audited by the IRS you will need to show proof of your expenses and if deemed non-qualified, you could be subject to tax and a 20% penalty.

Who is eligible for an HSA?

Any Individual:

• Covered by a high deductible health plan
• Is NOT covered by any first dollar coverage
• Is NOT enrolled in Medicare, Medicaid, Tricare
• Is NOT claimed as a dependent on someone else’s tax return

For a complete list of qualified and non-qualified expenses you can visit: www.irs.gov/pub/irs-pdf/p502.pdf

Montgomery County ESC HSA

• $1,400 for Employee Only
• $2,500 for all others (Employee/Spouse, Employee/Child(ren), Family)
  • MCESC Contributions are distributed into your account twice a year:
    • First Pay in January
    • First Pay in July
  • MCESC will provide a hardship advancement when approved

2023 Maximum HSA Contributions per Calendar Year

• $3,850 for Employee Only
• $7,750 for all others (Employee/Spouse, Employee/Child(ren), Family)
• $1,000 Catch up contributions for age 55+

Maximums include any employer HSA contribution