Flex/HSA

A health savings account  (HSA) is a tax-exempt account to pay or reimburse medical expenses that you incur.

• Contributions to you HSA made by Davis School District are excluded from your gross income (pre-tax).
• All Contributions remain in your account until you use them. You don't have to worry about losing any money!
• Interest and other earnings on assets in the account are Tax Free.
• Distributions may be tax free when used for qualified medical expenses. Click here to see a list of Qualified Medical Expenses.
• If you leave the Davis School District your HSA will stay with you wherever you go.

• You must be eligible for insurance and be enrolled in a High Deductible Insurance Plan to participate. If you are not sure whether or not sure whether or not you are insurance eligible, please contact Insurance Department at 801-402-5200.
• You cannot be covered under another Insurance Plan or enrolled in Medicare.
• You cannot be claimed as a dependent on someone else's tax return.
• You cannot be enrolled or contributing to a Regular Flex Spending Account.
• You can be enrolled and contributing to a Limited Flex Spending Account. The Limited Flex is only for vision and dental expenses.

The maximum that you can contribute in 2023 is $3,850.00 (Individual) or $7,750.00 (2-party or Family).

This amount includes employer-paid and employee-paid contributions. In other words, you must reduce the maximum contribution amount by the total amount that the Davis School District is contributing on your behalf to calculate the maximum amount that you can contribute through payroll deduction.

• If you are 55 years of age or older you can contribute an additional $1,000.00
• If you become eligible to participate on the first day of December, your annual max is prorated by month. You would be eligible to contribute 1/12th of the annual max.
• Beginning the first month that you are enrolled in Medicare, your contribution drops to zero.
• Any contributions in excess of the maximum amount are not deductible and are subject to tax.

You can start and/or change your HSA employee-paid contributions through the Payroll Management Systems.

• Login to your Payroll Management
• Click the "Update Payroll Info: Tab
• Click the "Deductions" Tab
• Click Start/Edit/Stop Button to start and/or change the amount that you are contributing.
• Please Note changes made to summer check contributions must be made by June 15^th. This is due to summer checks being cut in June before the end of the fiscal year.

Employer-paid contributions show in your account within the first 5 days of the month. (i.e., January 1-5th).

Employee paid contributions will show in your account by the 15th of the month (i.e., January 10th-15th).

If you and your Health Care Provider are working to set up a payment plan, it would be a good idea to make the payments due after the 15th. This will ensure that all contributions will be in your account before your payment is due.

The amount contributed by the District for the 2023 year is as follows:

Family Coverage:

30 or more hours per week $180/month ($2160/year) 

Less than 30 hours $90/month ($1080/year)

2 Party Coverage:

30 or more hours per week $140/month ($1680/year) 

Less than 30 hours $70/month ($840/year)

Individual Coverage:

30 or more hours per week $70/month ($840/year) 

Less than 30 hours $35/month ($420/year)

You can make direct payments to your Health Care Provider with the Health Equity HSA debit card, or you can pay the expenses out-of-pocket and then reimburse yourself.

• You can still receive tax-free distributions to pay or reimburse your expenses, even if you are no longer eligible to participate.
• If you receive distributions for expenses that are not qualified, the amount that you withdraw will be subject to income tax and may be subject to an additional 20% tax.
• You do not have to make distributions or get reimbursed each year.
• You can make payment for qualified expenses for you, your spouse, and any dependents that you can claim on your tax return.
• Click here to see a list of Qualified Medical Expenses through the Health Equity Website.
• Insurance premiums are not considered qualified medical expenses.

Both employer-paid and employee-paid contributions will be included in Box 12 on your W2. it will be coded with a "W" next to the amount that was contributed. Also in the Earnings and Benefit Summary in the bottom right-hand corner of the W2 will show the amount of the employer-paid contributions. This information will be important for when you have to file your taxes because it will help you fill out FORM 8889.

When you file your taxes at the end of the year, you will need to file a Form 8889 with your 1040. You must file this form even if only Davis School District made contributions to your HSA. If you have an HSA as an employee and you are also a beneficiary on your spouse's HSA, you must file a separate form for each HSA.

• NO MONEY UP FRONT- Unlike a Flex Spending Account, there is no money up front. This may make it hard if you have a large expense at the beginning of the year.
• Balance Rollover- If you still have a balance in your account at the end of the year,  it will rollover to the next year.
• Most Doctors may be willing to discount the cost of procedures, if you are willing to pay for the procedure up front. Your Doctor may also be able to find lower cost substitutes that will work just as well. Check with your Doctor, it can't hurt!