Your Seagate medical plans come with the option to open and set aside money for health care expenses in a Health Savings Account (HSA) through HSA Bank. Even better, Seagate contributes, too!
You can use the money in your HSA to pay for medical, prescription drug, dental and vision costs as they come up. What’s more, any funds you choose to save for future expenses will stay in your account (and continue to earn interest). Your HSA nest egg will come in handy for your health care expenses in retirement.
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5 Things to Love About Your HSA
You can use the money in your HSA to pay for eligible health care expenses you incur today or save it (and build it) to cover planned and unplanned future expenses—even in retirement. Your HSA is yours to use forever, even if you leave Seagate.
Here are the five main advantages of having an HSA:
1. You get free money from Seagate to help cover your health-related expenses.
2. You save on taxes three ways:
- The contributions you make to your HSA aren’t taxed*—and they reduce your taxable income, too!
- You’re not taxed on HSA withdrawals for qualified health care expenses.
- You earn tax-free interest on your HSA balance and any investment earnings.*
3. Once your balance reaches $1,000, you can invest the funds in your account to potentially grow your balance even more.
4. You can use money in your HSA to pay for your dependents’ qualified health expenses, even if they’re not enrolled in a Seagate medical plan.**
5. Your HSA is another way to save for retirement (and the health expenses you’ll have then).
* You won’t pay federal taxes on contributions and investment earnings, but some states tax HSA contributions and investment earnings. Consult your tax advisor for details.
** You can use your HSA to cover your domestic partner’s medical expenses only if you claim him/her as a dependent for tax purposes.
Looking to Grow Your HSA?
Open an investment account once your HSA balance reaches over $1,000.
Contributing to Your HSA
Seagate deposits its full annual contribution to your HSA in January of each year. If you are hired between July 1 and December 1, you’ll receive half of the annual company contribution. You can use your HSA to pay for eligible health expenses you incur as of the date your HSA is established. Here are other important facts to know about HSA contributions:
- Per IRS regulations, you must be enrolled in a qualified HDHP on the first day of the month in order to make or receive an HSA contribution during that month.
- You must elect your HSA contributions every year. Your prior year contribution will not carry over into the new year.
- You can stop or change your contribution (HR Services > Fast Access > US Benefits Enrollment/Changes) as often as once a month to cover planned or unplanned health expenses.
- If you’re hired between December 2 and December 31, you won’t receive the company contribution for that year, and you won’t be able to make personal contributions until January of the following year.
- If you don’t want to enroll in an HSA or are ineligible for an HSA, you can opt out by waiving coverage (HR Services > Fast Access > US Benefits Enrollment/Changes).
Medicare Enrollment Will Impact Your Ability to Contribute to Your HSA
Seagate’s Annual Contribution to Your HSA
| HDHP 1 | HDHP 2 | |
|---|---|---|
| Employee Only | $700 | $350 |
| Employee + Dependents | $1,400 | $700 |
2024 Annual Contribution Limits (Including Seagate Contribution)
| HDHP 1 | HDHP 2 | |
|---|---|---|
| Employee Only | $4,150 | $4,150 |
| Employee + Dependents | $8,300 | $8,300 |
| Additional Catch-Up Contribution, if 55 or Older | $1,000 | $1,000 |
Have Enough to Cover That Unexpected Expense?
Check your HSA balance anytime.
Using Your HSA
After you open your HSA and elect your annual contribution level, HSA Bank will send you an HSA debit card that you can use to pay for qualified health expenses. You can use it anywhere MasterCard debit cards are accepted. You can also choose to receive a checkbook in addition to the debit card.
Here’s what you can do with your HSA debit card:
- Pay your provider
- Get cash from any ATM that displays the participating network logos displayed on the back of your debit card
If you prefer, you can use Online Bill Pay to pay a provider directly from your HSA. To access Bill Pay, log into the member website or mobile app and click on “Pay Bill/Contribute” (To use HSA Bank Mobile, you must first create a username and password on the member website).
Save Even More!
If you’re enrolled in the HSA and want to save more in pre-tax dollars for dental and vision expenses, you can enroll in the Limited Purpose Flexible Spending Account (LPFSA).
What Your HSA Can Pay For
The IRS determines the health care expenses that are qualified and, thus, eligible for reimbursement from your HSA.* Here are some expenses you can use your HSA for:
- Doctor and hospital visits (copayments and coinsurance)
- Prescription drugs
- Over-the-counter medications, without a prescription
- Acupuncture
- Hearing aids and batteries
- Fertility treatment
- Insulin
- Lab fees
- Vision exams
- Eyeglasses and contact lenses (and contact lens solution)
- Dental treatments
- Menstrual products
Learn what else your HSA covers.
* You’ll pay taxes and a 20% penalty on HSA withdrawals for ineligible expenses if you’re under age 65. After age 65, you can use the money in your HSA for other expenses without penalty, but taxes will apply if not used for health expenses.
HSA Eligibility
To open and contribute to an HSA, you must be enrolled in the HDHP 1 or HDHP 2 medical plan.
You are not eligible for an HSA if you:
- Are enrolled in another medical plan,* unless it’s a qualified High Deductible Health Plan
- Are claimed as a dependent on someone else’s tax return
- Are enrolled in a general purpose Health Care Flexible Spending Account
- Are enrolled in Medicare Parts A, B or D
- Have received benefits from the Veterans Administration within the past three months or are enrolled in TRICARE
* This exception does not apply to medical plans that provide coverage for a specific illness or disease, a fixed amount for hospitalization or workers’ compensation, or that provide limited-scope dental, vision or post-deductible benefits.