Contributions

You will be able to continue contributing to the health savings account.

The maximum amount you are permitted to contribute will be the greater of the maximum annual HSA contribution based on your HDHP coverage on the first day of the last month of your tax year (December 1st), or the amount that results when you prorate appropriately for the number of months you were enrolled in each coverage level.

If you and your spouse are both benefits-eligible IU employees, you can choose one shared plan or separate plans for medical coverage and HSAs.

Option 1: Enroll together in employee plus spouse or family coverage under the higher-paid spouse.

• Premiums are based on the higher-paid spouse’s salary band and chosen plan.
• If that spouse enrolls in IU’s high deductible medical plan, they can open an HSA and contribute up to the family maximum (plus the catch-up if they are age 55 or older). They will also receive IU’s contribution for family coverage.

Option 2: Enroll separately in employee-only coverage.

• Each of you will pay the premium for your individual salary band and plan.
• If you also need to cover children, then one spouse should enroll in employee-only coverage, and the other in employee plus child coverage. It doesn't matter which parent enrolls them, as long as each child is only enrolled once.
• If both of you enroll in IU’s high deductible medical plan:
  • You can each open your own HSA and contribute up to the maximum (plus the catch-up, if you are age 55 and older). You will also each receive IU’s contribution for your coverage level.
  • Important caveat: If either of you covers children, then your combined  contributions across both of your HSAs cannot exceed the family contribution limit.

Find this year’s HSA contribution limits.

While turning age 65 does not change your HSA eligibility, enrolling in Medicare or Social Security does. Learn why you don’t have to enroll in Medicare until you retire (regardless of your age) and about your options for your HSA if you’ve already enrolled: How enrolling in Medicare can affect your HSA.

Your per-paycheck contribution is calculated based on 12 or 26 pay periods. Because you don’t receive paychecks during two months of the year, your remaining balance will be automatically recalculated when you return and spread evenly over your remaining pay periods. IU will still make its contribution in July, even though you won’t receive a paycheck that month.

You can add funds to your HSA outside of IU payroll by transferring money from a personal bank account directly to your HSA or by mailing a check to WEX with the required contribution form. Contributions made on an after-tax basis can be deducted from your gross taxable income when you file your tax return. Remember to track all contributions—university, payroll, and personal—to ensure you don’t exceed the IRS limit.