Your HSA Benefits at a Glance
An HSA is a personal health care bank account that you can use to pay for qualified health care expenses with pre-tax dollars if you enroll in a high-deductible health plan, such as the CDHP.
The contributions are tax free, and the money in the account is yours. HSAs allow you to control your own money, year in and year out.
You are eligible to open and fund an HSA if:
You are covered by an HSA-eligible medical plan, as described above.
You are not eligible to open and fund an HSA if:
You are covered by your spouse/domestic partner’s health plan that is not an HSA-qualified medical plan, a regular health care flexible spending account or a health reimbursement account (HRA).
You are eligible to be claimed as a dependent on someone else’s tax return.
You are enrolled in Medicare or TRICARE for Life.
You have received Veterans Administration Benefits three months prior.
Your HSA can be used for your qualified expenses and those of your spouse and dependents, even if they are not covered by your medical plan.
When HSA Coverage Begins and Ends
When Coverage Begins
If you enroll in the CDHP medical option, your HSA coverage is effective upon your medical enrollment. When you first join the company, your medical coverage begins on the first of the month after you have two continuous months of service with the company, provided you have enrolled within 31 days of your eligibility period.
When Coverage Ends
If you lose coverage under your medical plan, you will lose eligibility to deposit further funds into your HSA. However, funds already in your HSA remain available for your use.
How the HSA Works
Eligible Expenses
Examples of eligible expenses include doctor’s office visits, eye exams, prescription expenses, dental and LASIK surgery. IRS Publication 502 provides a complete list of eligible expenses and can be found at
www.irs.gov/pub/irs-pdf/p502.pdf.
Individually Owned Account
You own and administer your HSA. You determine how much you will contribute to your account, when to use the money to pay for qualified medical expenses and when to reimburse yourself. HSAs allow you to save and “roll over” money if you do not spend it in the calendar year.
The money in this account is always yours, even if you change health plans or jobs. There are no vesting requirements or forfeiture provisions.
How to Enroll
CDHP Participants
When you enroll in the CDHP, you will need to complete your HSA enrollment and designate the amount you wish to contribute on a pre-tax basis. You must also complete bank account enrollment information to allow DallasNews Corporation to establish your account in your name and send your contribution.
Once you open your HSA bank account at
www.401k.com, Fidelity will issue you a debit card, giving you direct access to your account balance. Any time you have a qualified medical expense, you may use your debit card to pay. You must have funds available in your HSA to use your debit card. You do not need to submit receipts for reimbursement. However, you should keep records to validate eligible expenses in case you are audited.
Tax Savings
Contributions to an HSA are tax-free. If you are a CDHP participant, they can be made through payroll deduction on a pre-tax basis when you open an account with Fidelity.
The money in this account, including interest and investment earnings, grows tax-free.
As long as the funds are used to pay for qualified medical expenses, they are spent tax-free.
Refer to IRS Publications 502 and 969 for more information.
HSA Funding and Limits
The 2023 IRS maximum contributions (including any CDHP employer contribution outlined below) are:
Employee only: $3,850
Employee with dependents:
$7,750 The IRS also allows an additional catch-up contribution of up to $1,000 if you are 55 or older in 2023.
Annual Employer HSA Contribution for CDHP Participants
If you enroll in the CDHP and establish your HSA at Fidelity, DallasNews Corporation may provide an employer contribution that will be deposited on a monthly basis. If your annual salary is less than $100,000, the company will make a contribution to your HSA as follows:
Employee only: Up to $650 (amount depends on salary)
Employee with dependents: Up to $1,300 (amount depends on salary)
You also may be able to roll over funds from another HSA. For more enrollment information, contact Fidelity at 1-800-835-5098 or
www.401k.com.
The maximum annual contribution limit is based on your age, salary and coverage tier (i.e., individual or family), as well as on when you become enrolled in an HSA-eligible health plan. Normally, for eligible individuals who enroll in the HSA-eligible plan as of the first of the plan year, the HSA contribution is prorated based on the number of months during the year a person is covered by an HSA-eligible plan as of the first day of the month. Individuals enrolled in an HSA-eligible health plan after the beginning of the plan year may contribute up to the statutory maximum annual contribution amount as long as they are eligible individuals in December of that tax year and remain eligible individuals for the entire next calendar year. If an individual fails to meet these criteria, the maximum annual contribution amount must be prorated based on the number of months he or she is an eligible individual, and any amount above such prorated amount is included in the individual’s gross income and subject to a 10% tax.