Insperity Health Savings Account Details
Common Situations Regarding HSAs
Table of Contents
2. Funding Your Account
3. What If I Don’t Have Money In My HSA
4. Contribution Limits
5. What Is Included with the Insperity HSA Program?
6. Other Services and Fees
8. HSA Eligibility
9. How to Enroll
10. Beginning and Ending Participation
11. Enrolled in an HSA-Eligible Medical Plan for a Partial Year
12. Tango On Your Mobile Device
Enrolling in the HSA and Registering on Tango Health
No later than 48 hours after you finalize enrollment in the High Deductible Health Plan, you can open your Health Savings Account at Tango Health. Tango will email you a reminder to the personal email account on file with Insperity but you do not need to wait for the email to begin registration. We strongly recommend that you register and open your HSA prior to the start date of your coverage as your ability to immediately start payroll deductions could be impacted if you open your account late. If you have any trouble registering, please call Tango Health at 1-800-877-4727 so we can help research your account.
Funding Your Account
Your Tango HSA will be funded through deductions you make from your Insperity payroll. The amount you choose to contribute to your HSA can be modified on a monthly basis to meet your changing needs.
First, your HSA must be open in order to see a payroll deduction change. Once it is open you can login to Tango Health and submit a payroll deduction change request. Once your deduction is approved you will receive an email with the effective date of that deduction. The effective date refers to the working dates for which you are being paid (rather than the payday). You will see the deduction in your paycheck when you are being paid for days worked that include the effective date.
Example 1: Your HDHP eligibility date is March 1. You open your HSA on February 20. You submit a payroll deduction change on February 25 and receive an email confirming your deduction on February 26th with an effective date in the email of February 26th. You are paid on March 5th for days between February 14th and February 28th. In this situation your deduction will not be seen on your March 5th paycheck because you are being paid for days prior to when you were eligible.
Example 2: The same situation but instead you are paid on March 14th for days worked between March 1st and March 14th. In this situation you would see the deduction on your March 14th paycheck because the deduction was made before the pay period (and went into effect on February 26th).
Example 3: In this situation you became HSA eligible on March 1st but don’t make a deduction request until March 16th. You receive an email confirming this request and showing an effective date for the deduction of March 17th. On March 14th you are paid for days worked between February 14th and February 28th. On the March 14th pay check you would not see any contribution to your HSA because the days you are being paid for are before you were HSA eligible. On March 31st you are paid for days worked between March 1st and March 14th. Again, you would not see any deduction because the effective date of the deduction is March 17th and outside of the days you are being paid for work. Assuming you didn’t change your deduction, you would only see the deduction on the next pay check.
Additionally, the payroll deduction will be deposited in your HSA account on the third business day after your pay date and only visible in Tango four business days after your pay date. The timing of payroll deductions or deduction posting shouldn’t prevent you from realizing any tax savings. To find out how to handle a situation in which you don’t have enough money in your HSA, see the next section below, What If I Don’t Have Money In My HSA.
What If I Don’t Have Money In My HSA
If you are able, Tango Health strongly advises you to put money in your HSA through payroll deductions. This is the only way to receive the full tax benefit. If you use a method other than payroll deductions to fund your HSA (for example, sending a check to the bank or making an electronic deposit from your checking or savings account) you will not receive payroll tax relief. You will still be able to receive income tax relief but using payroll deductions is the only way to save your payroll taxes. Saving payroll taxes can be hundreds of dollars in savings.
To see these advantages, it is not necessary to fund your HSA before you pay for medical expenses. In fact, using Tango makes it easy for people who are cashflow constrained to leave their HSA balance at $0. These users only contribute to their HSA after they have a medical expense. They will pay the medical expense with money that was already taxed (from the checking account or credit card). Afterwards, when they have money in their HSA, they will pay that untaxed money back to their checking account, effectively paying for the expense with untaxed money.
The maximum you may contribute to your Health Savings Account is the amount set by federal law for your coverage level and age. The following table shows the 2012 IRS limits:
|2013 Federal Limit||Over 55|
If you have reached age 55 (or will reach age 55 during the year) federal law allows you to make an additional contribution to your HSA. The amount allowed as a “catch-up” contribution for 2012 is $1,000.
Eligibility to make both regular and catch-up contributions ends when you enroll in Medicare.
Note: If you leave an HSA-eligible medical plan before the year end, then your contribution limits will be prorated.
What Is Included with the Insperity HSA Program?
Tango Health provides HSA account management support and educational content to assist in optimizing your HSA. Insperity will pay the monthly account management fee while you remain an eligible employee of Insperity.
Insperity paid account management features include:
- Online enrollment
- Monthly account maintenance fee
- 1 OptumHealth Bank debit card and 1 additional requested debit card
- Use of debit card for point of sale purchases
- Online fund transfers from HSA to personal account via Tango Health’s website
- Account-holder file downloads from Tango Health account management website
- Electronic expense recording, credit card import and receipt uploading
- For more information about how Tango Health makes HSA management easy, visitHow Tango Health Works
Other Services and Fees
Once you cease to be an eligible employee of Insperity, your relationship with Tango Health will continue automatically until you cancel your membership. If you choose to continue your membership, the monthly account management fees ($4 per month) will be automatically deducted from your HSA. If you choose to cancel your membership, your HSA will remain in place with OptumHealth Bank and normal monthly account management fees will continue to be deducted from your HSA.
Your HSA administrator and custodial bank (Tango Health and OptumHealth Bank respectively) will provide you with a fee schedule that outlines one-time fees associated with your account, such as set-up, service, closure or transaction fees outside of those covered by Insperity. Examples include Stop Payment or ordering additional HSA checks. Don’t hesitate to request our document of considerations for closing your account.
Tango Health does not use paper claim forms for reimbursement of your eligible medical expenses. In order to receive a disbursement of funds in your HSA, you can visit the Tango Health website.
Note: You are not required to submit copies of supporting documentation. However, you must keep all original supporting documentation, including receipts, for your records. You can maintain these records electronically through Tango Health’s website.
To be eligible to contribute to the Insperity HSA, you must be enrolled in an Insperity-sponsored HSA-eligible medical plan. Insperity offers High Deductible Health Plans (HDHPs) that are HSA-eligible medical plans.
In addition to being enrolled in the Insperity HDHP, further considerations to be eligible include:
- You are not covered by any other non-HDHP health plan, such as a spouse’s plan, that provides any benefits covered by your HDHP plan. Exceptions include permissible coverage, such as specific injury insurance or accident, disability, dental, vision or long-term care insurance;
- You are not enrolled in Medicare;
- You do not receive health benefits under TRICARE;
- You haven’t received Veterans Administration (VA) benefits within the past three months (unless the benefits consist solely of preventive care or the limited other coverage specifically allowed by law);
- You can’t be claimed as a dependent on another person’s tax return; and
- You are not covered by a general purpose health care flexible spending account (FSA) or health reimbursement account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.
Furthermore, you only become eligible for contributions to be made to your account on the first day of the month after your HDHP coverage begins and your HSA is established.
The Health Savings Account can be used to pay for eligible medical expenses for yourself, your spouse, your children or other tax dependents. If you are paying expenses for a family member, he or she does not have to be covered under the HDHP plan, as long as the expense is not reimbursed by other insurance and the individual is not being claimed as a tax dependent by someone else.
To review the IRS guidelines, please see form 969
How to Enroll
Enrollment will be done online. No later than 48 hours after you complete enrollment in the HDHP, you can register for Tango Health and open your account athttps://insperity.tangohealth.com.
Beginning and Ending Participation
You can open your Health Savings Account once you are enrolled in one of Insperity’s HDHP medical plans.
Note: You should only use your HSA for expenses incurred after your HDHP coverage begins and after your HSA has been opened. The only exception is if you had continuing coverage under another HDHP before your Insperity coverage begins or have an existing HSA.
Coverage under the medical plan will end when your enrollment in that plan terminates. However, your HSA belongs to you and is portable and non-forfeitable. To be eligible to continue contributing to the HSA, you must be HSA eligible.
You may pay for qualified medical expenses from your HSA at any time. Once contributions are made to your HSA, your account can be used to pay for qualified medical expenses tax-free, even if you are no longer covered under a high-deductible HSA-eligible medical plan. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.
Enrolled in an HSA-Eligible Medical Plan for a Partial Year
The number of months you are covered by an HSA-eligible medical plan may affect the amount you can contribute to an HSA for the year. The specifics will depend on whether you are starting or ending your enrollment in the HSA-eligible medical plan.
Starting Your Enrollment: The first year you enroll in the HSA-eligible medical plan, you can make the full HSA contribution allowed for the year, subject to the following conditions:
- You must be enrolled in the HSA-eligible medical plan by the first day of the last month of the year (for most enrollees, this means December 1; if you use something other than the calendar year when filing tax returns, it would be the first day of the last month of your tax year) and
- You must remain enrolled in the HSA-eligible medical plan for a 13-month period starting that December 1 (or your tax year’s equivalent of that date).
Example: Your coverage under the HSA-eligible medical plan starts December 1, 2009. You may make the full HSA contribution allowed for 2009, provided you remain enrolled in the HSA-eligible medical plan from December 1, 2009, through December 31, 2010.
Your coverage level and age on the December 1 (or your tax year’s equivalent) will determine which maximum contribution amount will serve as your “full HSA contribution” for the year you first enroll:
- If you have self-only coverage then, you may make the self-only maximum contribution (plus the catch-up contribution, if you are age 55 or older).
- If you have family coverage then, you may make the family maximum contribution (plus the catch-up contribution, if you are age 55 or older).
A change to a different coverage level before the 13-month period is up will not affect the contribution amount allowed for the initial year you enroll (but does affect your contribution limit for the year in which your coverage changes).
If you do not meet these conditions, your maximum contribution will be calculated on a month-by-month basis for your months of enrollment in the HSA-eligible medical plan and your coverage level(s) during those months. Any contribution amount exceeding the resulting maximum will be taxable income and will be subject to a 10% penalty. Exceptions are made in cases of death or disability.
Ending Your Enrollment: If your enrollment in the HSA-eligible medical plan ends during the year, your maximum HSA contribution will be calculated on a month-by-month basis for your months of enrollment in the HSA-eligible medical plan and your coverage level(s) during those months.
If you continue to be HSA-eligible until the end of the year, you will be allowed to make the full contribution, subject to any adjustment for a change in coverage levels.
Otherwise, when you end coverage, contributions exceeding the pro-rated amount allowed are subject to a 10% penalty. This is different than contributions that exceed the yearly contribution limit.
Example: You have self-only coverage for the first 6 months of the year. You then cancel your coverage because you will be covered under your spouse’s plan. Your maximum HSA contribution for the year will be one-half the self-only maximum (plus one-half the catch-up contribution, if you are age 55 or older). If you have contributed more than that, you will pay a 10% penalty on the excess and the earnings on it. The 10% penalty applies to each tax year the excess contribution remains in the account.