HEALTH SAVINGS ACCOUNT
A Health Savings Account (HSA) helps you save for current and future healthcare expenses. It can be used for copays, deductibles and other health-related purchases like eye exams and glasses. The Health Savings Account is administered through FORUM Credit Union.
HSA BASICS
- It is a bank account that you open and own. You decide when and where to spend your HSA money.
- The money you put into your HSA is yours no matter what. Even if you leave our company, the money is still yours to use on future healthcare expenses.
- The money is not taxed. Pre-tax dollars are added to your account through payroll and the money you spend on eligible costs is never taxed. You also do not pay taxes on money you make on investments.
- The money in your account rolls over. The money saved to your HSA stays in the account from year to year, and you never lose it!
HSA ELIGIBILITY
- You MUST be enrolled in a qualified high deductible health plan
- You CANNOT be enrolled in another health plan elsewhere
HSA withdrawal Limit
There is a daily limit on the FORUM HSA Debit card to protect against fraud. The daily total limits are*:
ATM withdrawals: $505 In-person or over the phone: $2000 Online: $1000
*The limit can be raised for 24 hours by calling FORUM’s Member Services at 317-558-6299. Limits are subject to change.
Don’t have an existing Health Savings Account (HSA)? Open one through FORUM Credit Union using these instructions.
HOW AN HSA WORKS
First, you need to be enrolled in a HDHP plan. Then, you may set up an HSA with FORUM Credit Union and begin to save money to that account. The government sets limits on the maximum amount of money you can save with your HSA each year. This amount depends on whether you have healthcare coverage for yourself or your family.
Decide the amount you want to save for the year. Good news, you can change this amount at any time!
The money you choose to save is deducted directly from your paycheck and is not taxed.
You can also get money for your HSA from other people, including your employer. Town of Zionsville contributes to your HSA if you are enrolled in an HDHP plan.
2025 HSA CONTRIBUTIONS & LIMITS
Employee Only
IRS HSA Contribution Limit:
$4,300
Town of Zionsville Contribution:
HDHP 2K Plan: $956.28
HDHP 4K Plan: $1,456.28
Employee + Spouse
IRS HSA Contribution Limit:
$8,550
Town of Zionsville Contribution:
HDHP 2K Plan: $2,050.38
HDHP 4K Plan: $2,550.38
Employee + Child(ren)
IRS HSA Contribution Limit:
$8,550
Town of Zionsville Contribution:
HDHP 2K Plan: $1,718.86
HDHP 4K Plan: $2,218.86
Employee + Family
IRS HSA Contribution Limit:
$8,550
Town of Zionsville Contribution:
HDHP 2K Plan: $2,821.00
HDHP 4K Plan: $3,321.00
Catch-up Amount: $1,000
If you are age 55 or older and are eligible to add money to your HSA, you can add money above the regular limits, referred to as a “catch-up” contribution.
FREQUENTLY ASKED QUESTIONS
Who decides if the money I spend from my HSA is for a “qualified healthcare expense?”
You are responsible for spending your HSA money on eligible expenses. It is also your responsibility to keep receipts showing that your HSA money was used on those expenses. You should keep these receipts with your tax filings for each year, so you can show proof in case you are audited. To view a complete list of eligible expenses, visit IRS.gov and look for Publication 502.
I have an HSA but no longer have a High Deductible Health Plan. Can I still use the money for medical expenses tax-free?
YES. There is no time limit on using the money if it is for eligible healthcare expenses.
Can I use my HSA to pay for medical expenses I had before I set up my account?
NO. If you have not set up your account, you should do so as soon as possible.
Can I use my HSA to pay for medical expenses for a family member?
YES. You can use your HSA money to pay for the expenses for yourself, your spouse, or a dependent (except an adult child) without getting a tax penalty. This is true, even if he or she is not covered by a High Deductible Health Plan.
Can I use my HSA to pay for medical services provided in other countries?
YES. However, make sure that the medical services you are receiving are eligible expenses. Elective surgery, for example, may not be considered an eligible expense.
Can I pay my health insurance premiums with my HSA?
MAYBE. You can pay your health insurance premiums with money from your HSA only if you are collecting federal or state unemployment benefits, or you have COBRA coverage through a former employer.
How do I use my HSA to pay my doctor at the time of service?
There are no pre-deductible copays or coinsurance, so you should not be expected to pay any out-of-pocket amount at the time of service. Instead, you should request that the charge be billed through your insurance. This will likely result in a lower bill and ensure the charge is applied to your deductible. You will then receive a bill from your doctor and an Explanation of Benefits (EOB). You can pay this bill with the money from your HSA.
