Health Savings Account

An HSA is a tax-advantaged account you can use to pay your health care expenses — but only if you participate in the HealthSaver medical plan.

Eligibility

You’re eligible for an HSA if:

  • You’re enrolled in the HealthSaver Plan;
  • You’re not covered under any other health plan that is not a high-deductible health plan, including Medicare, Veterans Affairs (VA) benefits or TRICARE;
  • None of your eligible dependents (including your spouse) has a Health Care FSA; and
  • You’re not a dependent on anyone else’s tax return.

Reasons to Like the HSA

  • Get free money from ITW. When you enroll in the HealthSaver Plan, ITW automatically contributes money to your HSA: up to $500 if you cover only yourself or up to $1,000 if you cover one or more family members. You can also contribute to this account, up to IRS limits. 
     
    • If your benefits begin by July 1, 2022, you will receive the full $500/$1,000 ITW contribution.
    • For new enrollments with benefits effective July 2, 2022, through October 1, 2022, ITW’s contribution will reduce to $250 for individual coverage and $500 if you cover one or more family members.
    • If your benefits begin October 2, 2022, or later, you won’t receive an HSA contribution from ITW in 2022.
    • The annual HSA contribution from ITW is based on your coverage level when you first enter the plan (during Open Enrollment or when you become eligible for benefits). Any mid-year changes in coverage tier (adding or removing dependents) will not result in adjustments to the annual ITW HSA contribution.
  • Save on taxes three ways.

1.     Pre-tax contributions: Any money you contribute lowers your federal taxable income.

2.     Tax-free growth: The money in your account earns interest, and the investment earnings are tax-free, too.

3.     Tax-free withdrawals: HSA money you use to pay for eligible expenses is withdrawn tax-free.

  • Never lose the money in your account. You never lose any unused funds at the end of the year. Even if you change health plans, leave ITW or retire, all the money in your HSA, including ITW’s contribution, is yours to keep. At the end of the year, money you don’t spend will carry over so you can use it when you really need it — even when you retire! After age 65, you can even use it for non-health care expenses, but you’ll pay taxes.

Note: HSA contributions are taxed by California and New Jersey. HSA earnings are taxed by New Hampshire and Tennessee. Withdrawals for non-eligible expenses are subject to a tax penalty.

How the HSA Works

Open

Even if you choose not to contribute to an HSA, if you enroll in the HealthSaver Plan for the first time, we will open an HSA through HSA Bank so you can receive ITW’s contributions. HSA Bank will send you a Welcome Kit with more information after they receive your enrollment. They’ll also send you a debit card to be used for eligible health care expenses in a separate mailing.

Choose

You decide how much money you want to contribute to your HSA. Your contributions will be deducted from your paycheck on a pre-tax basis.

For 2022, you and ITW together can contribute up to $3,650 for individual coverage or $7,300 if you cover one or more family members. If you will be age 55 or older in 2022, you can contribute an additional $1,000.

Control

You can change your contribution amount at any time.

 

 

 

Pay

Use your HSA to pay for eligible medical, dental and vision expenses — tax-free.

Be sure to keep your itemized receipts to verify your claims, as required by the IRS.

Save

Any money you don’t spend at the end of the year will automatically carry over to the next year. And if you leave ITW or retire, you can take any money in your account with you.

 

Invest

Once you have $1,000 in your account, you can invest everything over that amount and get tax-free earnings on invested funds.

 

Access Your Account

From hsabank.com, you can:

  • Set up your profile
  • Designate a beneficiary
  • Order extra debit cards
  • View online statements
  • Check your balance
  • Manage your health care expenses
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