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Making a People Operations Wiki on Coda

Making a People Operations Wiki on Coda

Benefits

HSA & FSA

FSA and dependent care FSA

If you don’t find the information you are looking for below, please

submit it here

⁠

HSA

This communication is for informational purposes only. Plan documents and/or the insurance certificates shall govern in the event of a conflict.

HSA is designed to work with

HDHPs⁠

. When you enroll in an HDHP, you are eligible to contribute to an HSA which has triple tax advantages.

Tax-deductible contributions: Contributions to an HSA are tax-deductible, meaning they can reduce your taxable income.

Tax-free investment earnings: Any money you contribute to your HSA account grows tax-free. i.e interest or investment gains earned on the account.

You may begin investing once you have a minimum of $1,000 in your HSA Bank cash account. Only HSA funds above $1,000 in your HSA Bank cash account can be transferred to your investment account.

You’ll have to open up a self-directed investment account in order to invest funds in your HSABank account. See

here⁠

for more info.

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⁠

Tax-free withdrawals for qualified medical expenses: You can use the funds in your HSA account to pay for qualified medical expenses, including your deductible, copayments, prescriptions, and other out-of-pocket healthcare costs.

HSA elections can be edited at any time during the year. It does not need to be with an Enrollment period or while experiencing a QLE.

To change your HSA, log into Sequoia Prism. Under Forms, you’ll find HSA Contribution Change Form. This will take effect on the pay cycle following receipt of the change form.

HSA accounts are yours to keep even after you leave Coda. The money gets rolled over year to year.

Check

here⁠

for a common list of eligible HSA expenses.

Coda’s Contribution

Coda contributes the total amount of your plan’s deductible

Contributions get deposited to your HSA Bank account twice per month (aligned with payroll).

The amount of each contribution equals to your full deductible divided by 24

Maximize your HSA contribution

The IRS sets a maximum contribution amount every year. If you want to maximize your annual contribution, you can add the amount during enrollment or open enrollment.

You need to keep in mind how much Coda already contributes to your HSA.

For example: In 2023, the IRS max contribution for just the employee was $3850 and Coda contributes the deductible, which is $2,800. This means that the employee can do an additional contribution of $1050.

HSA Summary

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HSA Contributions

HSA Contributions

Year

Contribution

Type of Coverage

Annual Contribution

2023

Company Contribution

Single

3000 (eff 7/1)

Family

6000 (eff 7/1)

Overall HSA Contribution Limit

Single

3850

Family

7750

Additional Catch-up age 55-65

1000

2022

Company Contribution

Single

2800

Family

5600

Overall HSA Contribution Limit

Single

3650

Family

7300

Additional Catch-up age 55-65

1000

⁠

HSA Reimbursement

Download the HSA Bank App

In the I Want To section, select “Make an HSA Transaction”

Select “Distribution”

Select “To”

Default option is “Me (check)” and you’ll get a check in the mail in about a week.

If you would like to get the amount direct deposited, click on “Want to add a Bank Acct?” and set up your bank. It may take a few days to be active

Enter the Transaction details

Next and Confirm

New hires joining mid-plan year

HSA contributions are based on per pay period and when the new hire starts. As a new hire joining mid-plan year, you should take the respective annual Employer contributions, divide by 24 pay periods, and multiply by the remaining plan pay periods to find your Employer contribution.

Is there a daily limit for HSA’s debit card?

Your HSA Bank Health Benefits Debit Card provides access to your HSA funds at point-of-sale with signature or PIN and at ATMs for withdrawals. The daily debit card limit for the Health Benefits Debit Card is $5,000 at merchants dedicated to healthcare (e.g. a doctor’s office or hospital) and $3,500 at merchants that are not healthcare specific but offer eligible medical products and/or services (e.g. a department or grocery store). The number of debit card transactions allowed per day is limited and varies based on how the card is used or types of transactions processed. These limits exist as a safeguard against fraudulent activity. For more information, please call the number on the back of your Health Benefits Debit Card.

What if I have an expense that exceeds the daily limit?

HSA Bank provides you with multiple options to pay for an expense that exceeds the Health Benefit Debit Card daily limit of $5,000.* Your options include:

You can pay for an expense with your external, personal account or with a credit card and then reimburse yourself by scheduling HSA transfers within the

Member Website⁠

or mobile app (Note: there is a daily transfer limit of $2,500 to safeguard against fraudulent activity, so multiple transfers will be required for amounts above $2,500).

You can work with your provider (or hospital) to make debit card payments over multiple days.

You can use our online Bill Pay system to pay a provider. To access Bill Pay, log into the Member Website or mobile app and click on "Make HSA Transaction." (Note: there is no daily limit to pay a provider.)

You can pay with an HSA Bank check. Checks can be purchased within the Member Website. Check your Health Savings Account Fee and Interest Schedule for any applicable fees for ordering checks. There is no daily limit on dollar amounts.

NOTE: your transactions are limited to your available cash balance.

How does a HSA account work for my spouse?

The IRS treats married couples as a single tax unit, which means if one or both of you are using a qualified family health plan, you must share one family HSA contribution limit ($7,200 for 2021). If you both plan on contributing to your HSAs, you must have separate accounts. This is true even if you’re both covered by the same high-deductible health plan (HDHP).

You are unable to transfer funds from your account to your spouse if they have a separate account. HSAs operate as individual accounts.

Coda will only make employer contributions to the employee’s account (not your spouse).

You can use your HSA funds to pay for you, your spouse, and any tax dependent’s eligible medical expenses