The health savings account (HSA) is a tax-advantaged account for qualified medical expenses like your deductible and copays/coinsurance.
Learn all the ins-and-outs of a health savings account and how it can benefit you.
Okta contributes money to your HSA
Okta boosts your HSA balance each year by contributing $780 if you choose employee-only medical coverage, or $1,518 if you enroll your family members.
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 pretax contributions. For 2021:
- Employee-only coverage: Contribute up to $2,820
- Family coverage: Contribute up to $5,682
You can also make an additional $1,000 catch-up contribution if you are age 55 or older and not enrolled in Medicare.
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.
The IRS decides on the types of expenses that qualify for payment from your HSA. Here’s a brief list:
- Doctor office visits
- Chiropractic and acupuncture services
- Hearing aids
- Vision care—including contact lenses, LASIK, and prescription sunglasses
- Dental care—including braces, Invisalign, and implants
Also, if you’re enrolling your domestic partner or his/her children, talk with your tax advisor about using your HSA to reimburse their expenses.
Invest your HSA balance
Once your balance hits $2,000, you can invest your HSA in one of the many investment options offered by Optum Bank, Okta’s HSA administrator.
Your investment earnings grow tax-free, making the HSA a triple tax advantage for you.
For more information about saving and investing your HSA funds, contact Optum Bank at 866-234-8913, or email HSAGroup@OptumBank.com.
Spend or save? You choose
Whether you want to pay your annual deductible or pay copays and coinsurance, you decide when to use your HSA funds.
On the one hand, the reason you have an HSA is so you have a resource for paying your eligible medical expenses. On the other hand, you may decide to leave your HSA alone now so it can grow and be there for you later, when you might need it for something special, for example to pay for LASIK eye surgery.
Your HSA money is yours to keep
The HSA has no “use it or lose it” rule like its cousin, the flexible spending account. Your HSA balance rolls over each year and can keep growing.
Also, it’s completely portable, so you can take it with you if you leave Okta or change medical plans.
Setting up your HSA
Once you enroll, you decide how much you want to contribute for the year, up to the annual limit.
Your total HSA contributions—that is, what you contribute plus what Okta contributes—may not exceed the annual IRS limits. In 2021, these limits are $3,600 if you have employee-only coverage and $7,200 if you have family coverage. The 2021 HSA limits include Okta’s employer contribution.
You contribute to your HSA through pretax payroll deductions.
After you’re set up, you can change your contribution amount at any time.
Using your HSA funds
When you go to the doctor or have physical therapy or fill a prescription or incur any other qualified medical expense, you can use your HSA to pay it. You get to make this decision each time you have a qualified medical expense.
After you set up your account, you’ll receive a debit card, which you can use at your doctor’s office, pharmacy, hospital, or any other healthcare facility that accepts Mastercard.
You can also access your account anywhere, anytime through Optum Bank’s website. Use it to pay bills, reimburse yourself, upload receipts, check your account balance, and manage your investments.
Also, take advantage of Optum’s app, available through the App Store or Google Play.