If you enroll in a High-Deductible Health Plan (HDHP), you may be eligible to open a Health Savings Account (HSA), through Optum Bank. This savings account can help pay for eligible healthcare expenses not covered under your medical, dental, or vision plan and save for future care needs in retirement.
Six Reasons to Enroll in an HSA-Qualified Plan
- Contributions, interest, and qualified purchases are all tax-free
- It’s your account, your HSA goes with you if you leave the State of Colorado
- Funds don’t expire and there’s no “use it or lose it” provision
- HSAs can make a great retirement savings account
- Once your HSA balance reaches the investment threshold ($2,000), you can choose to invest your HSA funds and earn tax-free interest
- The State of Colorado puts money into your account every year
You can contribute pre-tax or post-tax* dollars from your paycheck up to the annual IRS maximums. To be eligible for the State’s HSA contribution of $60 per month, you must complete the following three steps in benefitsolver:
- Enroll in either the Cigna HDHP or the KP HDHP
- Elect the HSA option
- Agree to the terms and conditions
Once all steps are completed and the State receives your account information from Optum Bank, the State’s HSA contributions will begin.
*Pre-tax elections are made within benefitsolver; post-tax elections are handled through your payroll office.
- You must be enrolled in a qualified HDHP to contribute to an HSA, such as the Cigna HDHP or KP HDHP
- You cannot be covered under another non-qualified health plan, including your spouse’s Health Care Flexible Spending Account
- You cannot be enrolled in Medicare or Tricare
- You cannot be claimed as a dependent on someone else’s tax return
Refer to IRS Publication 969 for a complete list of eligible expenses and HSA rules.
HSA Contribution Limits - Calendar Year 2022
HSA contribution limits are determined every year by the Internal Revenue Service (IRS) under section 223 of the Internal Revenue Code (IRC).
|2022 Annual HSA Contribution Limits||Individual Coverage||Family Coverage|
|Maximum Annual Contribution Limit||$3,650||$7,300|
|Catch-up Contribution Limit (age 55+)||Additional $1,000||Additional $1,000|
Note: These IRS statutory contribution limits apply to the combined total of all of your HSA deposits including contributions from you, your employer, family members or anyone else. Catch-up contributions can be made during the calendar year in which the HSA participant turns 55.
State of Colorado's Optum Bank Group ID: 718733B
Visit optumbank.com or call 844-564-2201 or 800-498-5428 (TDHI) to learn more.
For questions about your State of Colorado benefits, contact your agency's Benefits Administrator.
- Health Savings Accounts (HSAs) are individual accounts and are subject to eligibility and restrictions, including restrictions on distributions for qualified healthcare expenses set forth in section 213(d) of the Internal Revenue Code (IRC).
- State taxes may apply. While Health Savings Accounts (HSAs) were created by the federal government, states can choose to follow federal tax treatment guidelines or establish their own. Please consult your tax advisor or state department of revenue for more information.
- If you are not age 65 or not enrolled in Medicare benefits or not disabled and you use your HSA funds for non-qualified purposes, any HSA funds used for nonqualified purposes are taxable as normal income and also subject to an additional 20 percent (20%) IRS tax penalty.
- After you turn age 65 or become enrolled in Medicare benefits, you may withdraw money from your HSA for nonqualified purposes without being subject to the 20 percent (20%) IRS tax penalty. The HSA fund withdrawal is treated as retirement income and is subject to normal income tax. The same holds true if you become disabled before age 65, you are not liable for the 20 percent (20%) IRS tax penalty and the HSA fund withdrawals are taxable as normal income.
- Optum Bank fees may reduce HSA fund balances.
- Federal and state laws and regulations are subject to change.
This information is not intended as legal or tax advice. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances and for personal advice on eligibility, tax treatment and restrictions.
The information on this page is an overview and is not intended to be a complete description of the benefits. A more detailed summary plan description for the plans can be found linked on this page. If there is a conflict between the information on this page and the official plan documents, the plan documents will govern. The State of Colorado reserves the right to modify or terminate any of the described benefits at any time and for any reason. The descriptions of these benefits are not a guarantee of current or future employment or benefits. For additional information about the specific plans available to you, please contact your agency's Benefits Administrator.