Health Savings & Flexible Spending Accounts

Health Savings Account (HSA)

• You are only eligible to enroll in an HSA if you enroll in the HSA Plan.
• Employee pre-tax paycheck contributions; RailWorks contributes $600 for an individual and $1,500 for a family tax-free in one lump sum when you enroll in the HDHP.
• The money you save in your HSA rolls over from year to year and can be used to save for retirement. You can even invest your HSA once you accumulate enough funds! And remember: the money is your personal savings account, so the money is yours to keep if you ever leave RailWorks!
• An HSA is a tax-advantaged savings account that can be used to pay for qualified healthcare expenses. You can contribute to your HSA, tax-free, from your paycheck if you’d like. After age 65, the money can be withdrawn for any reason, subject to normal taxes, without penalty.
• The money is your personal savings account, so the money is yours to keep if you ever leave RailWorks!
• Non-Qualified Expenses: If you use HSA funds for non-qualified expenses before age 65, you will owe a 20% penalty tax PLUS income tax on the withdrawal. After age 65, if you use HSA funds for non-qualified expenses, you will owe income tax only. Visit irs.gov/publications/p502 for details.
• Eligible expenses: Medically necessary expenses that are not covered by your health plan, including deductibles and coinsurance; Dental care services; Vision care services; Prescription Drugs; Over-the-counter (OTC) medications prescribed by your doctor; Certain medical equipment
• You have the option to contribute pre-tax money to a Health Savings Account (HSA) to save for out-of-pocket healthcare expenses. Any money that you don’t spend grows year after year and can be used in the future, even after you retire.
• Enrolled employees will be issued an HSA debit card.
• Visit myCigna.com to create a profile and start managing your HSA!
• If you are interested in transferring your current Inspira HSA to the new Cigna/HSA Bank account, there will be additional details in the enrollment portal with instructions on how to do so.
• Consider how “Diane” saves. She sets aside $2,000 in an HSA for the year. She incurs $2,000 worth of eligible expenses. Diane SAVES $813: $560 (28% Federal income tax), $100 (5% State income tax), $153 (7.65% Payroll taxes). Diane PAYS $1,187. These are hypothetical illustrations for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors.
• Preventive Care Covered 100%. RailWorks HSA Contribution and Your Share apply toward the Deductible. Coinsurance applies after the deductible. Unused HSA funds are portable and roll over from year-to-year. Out-of-Pocket: Max you’ll pay AFTER deductible is met.