The takeaway
The health savings account (HSA) is a tax-advantaged account for qualified medical expenses like your deductible and copays/coinsurance.
You can only participate in this account if you are enrolled in an HSA-compatible medical plan like the Kaiser HDHP + HSA or the Blue Shield HDHP + HSA.
Learn all the ins-and-outs of a health savings account and how it can benefit you.
Okta contributes money to your HSA
Okta contributes to your HSA on your behalf:
- $33.33 per paycheck, up to $800 for employee-only medical coverage
- $66.66 per paycheck, up to $1,600 for family coverage
Okta’s contributions are tax-free on the federal level and most state levels (except in California and New Jersey).
Contribute your own money, too
You can make your own pre-tax contributions via payroll deduction but you cannot exceed the IRS limits, which also includes the employer contribution.
IRS annual limits
| Benefit Type | 2023 Limit |
|---|---|
| Health Savings Account (HSA) | $3,850 employee-only coverage* $7,750 family coverage* $1,000 catch-up (age 55 or older and not enrolled in Medicare) |
*Limits above include Okta’s contribution
HSA eligibility
If you enroll in one of Okta’s high-deductible health plans then you may be eligible to open an HSA account if the below restrictions do not apply to you:
- You cannot be covered under another health plan
- You cannot be enrolled in Medicare
- You cannot be claimed as a dependent on another person’s tax return
Please consult your tax advisor for further guidance.
Should I choose an HDHP + HSA plan?
When you consider Okta’s HSA contribution, your lower paycheck costs, and 100% in-network coverage after you meet the deductible, these features may balance out the higher deductible of these plans.
Eligible expenses
The IRS determines what types of expenses qualify as eligible for reimbursement. See below for some examples and note that this list is not exhaustive.
- Doctor office visits
- Prescriptions
- Chiropractic and acupuncture services
- Hearing aids
- Vision care—including contact lenses, LASIK, and prescription sunglasses
- Dental care—including braces, Invisalign, and implants
If you’re enrolling your domestic partner or their children, consult with your tax advisor to confirm whether or not they would be eligible to access funds from this account.
Learn more about the Health Savings Account with this overview.
Invest your HSA balance
You can invest your HSA in one of the many investment options through Forma, powered by Drive Wealth.
Your investment earnings grow tax-free, making the HSA a triple tax advantage for you.
Your HSA money is yours to keep
The HSA has no “use it or lose it” rule like the flexible spending account. Your HSA balance rolls over each year and can keep growing as an additional savings vehicle. These accounts are completely portable, so you can take it with you if you leave Okta or change medical plans.
Enrolling in your HSA
During your Benefits enrollment process in Workday, confirm your eligibility for an HSA and elect an HDHP + HSA option and determine whether or not you want to contribute pre-tax funds to your HSA in addition to receiving the Okta employer contribution. Your information is then sent to Forma to open a health savings account (HSA) on your behalf.
Accounts are opened the 1st of the month following your enrollment date as long as there are no delays as a result of Forma’s CIP process which would require an employee to take additional action to get their account opened.*
*CIP Process: Once an employee enrolls in an HSA via Workday and before their account is opened, Forma needs to confirm their full name, residential mailing address, birth date, social security number and phone number. This process is called Customer Identification Program (CIP). Learn more about the CIP program.
Making changes to your HSA contributions
You can change your contribution amount at any time via a life event in Workday, not to exceed the IRS limits, and not below the amount that you have already contributed year to date. Changes will be captured with the next applicable payroll cycle.
Using your HSA funds
When you go to the doctor, have physical therapy, fill a prescription or incur any other qualified medical expense, you can use your HSA funds to pay it.
Get a list of qualified expenses through Forma.
You will receive one Forma debit card that will be used for all pre-tax benefits. When using your Forma debit card, funds will be pulled from your accounts in the following order (if applicable) - 1. Healthcare FSA 2. Limited Purpose FSA 3. HSA 4. Dependent Care FSA 5. Commuter Transit 6. Commuter Parking.
Swipe your Forma debit card at your doctor’s office, pharmacy, hospital, or any other healthcare facility and the funds will be deducted directly from your account.
You can access your account anywhere, anytime through Forma’s website and their App (accessible on Okta’s dashboard). Use it to pay bills, reimburse yourself, upload receipts, check your account balance, and manage your investments.