Health Savings Account (HSA)

Overview

A Health Savings Account (HSA) is a special tax-advantaged savings account, similar to a traditional Individual Retirement Account (IRA) but designated for medical expenses. An HSA allows you to pay for covered health care expenses. HSAs provide triple-tax advantages: contributions, investment earnings, and qualified distributions are all exempt from federal income tax, FICA (Social Security and Medicare) tax and state income taxes.

  • Claim forms and supporting documentation are not required.
  • No minimum contribution required for the HSA.
  • Unused HSA dollars roll over from year to year.
  • Funds in the HSA are portable and non-forfeitable. The HSA can be taken with you when you change medical plans, change jobs or retire.
  • HSA account is insured by the Federal Deposit Insurance Corporation (FDIC).
  • Funds in the account, not needed for near-term medical expenses, may be invested. This provides the opportunity for funds in the HSA to grow. Investment options include money market accounts, mutual funds, etc.
Eligibility

To be eligible to set up an HSA and to make pre-tax contributions, you must be covered by one of the following SHBP High Deductible Health Plans:

Employees may set aside pre-tax dollars up to the federal limit in an HSA.

  • The federal limit in 2024 is $4,150 for Single level coverage and $8,300 for Member & Spouse/Same-Sex Civil Union or Same-Sex Domestic Partner or Family coverage.
  • The federal limit in 2025 is $4,300 for Single level coverage and $8,550 for Member & Spouse/Same-Sex Civil Union or Same-Sex Domestic Partner or Family coverage.
  • Employees ages 55-65 may contribute an additional $1,000.
  • NJ Direct HDLow and Aetna Freedom HDLow include $300 Health Savings Account funding by employer.

Employees who elect to contribute to an HSA may not participate in an Unreimbursed Medical Flexible Spending Account. However, employees may still use the Dependent Care Spending Account.

How to Enroll
  • Complete enrollment into a SHBP High Deductible Health Plan through BenefitSolver by accessing the MyNewJersey portal.
  • For Horizon HSHP members complete an HSA Contribution Form for pre-tax payroll deductions.
  • For Aetna HDHP members complete a HSA Inspira Enrollment Form.
  • Return the form to OneSource Faculty & Staff Service Center.
  • If you have any other questions or concerns, please contact OneSource Rutgers Faculty and Staff Service Center at 732-745-SERV (7378) or OneSource@rutgers.edu.
Resources for Horizon HDHP members
Resources for Aetna HDHP members