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1. How much can I contribute to my Health Saving Account?

The IRS sets the Federal limit each year for contributions to Health Savings Accounts. Please contact the Human Resources Department (7273) or the Finance Department (7237) for the current contribution limits.

2. Does the Federal contribution limit include the City’s contribution?

Yes. Together, you and the City are eligible to make contributions up to but not exceeding the maximum Federal contribution limit.

3. When does the City deposit its contributions to my Health Savings Account?

The City splits its contribution in two payments, the first half is deposited around January 1 and the second half is deposited around July 1 of each year.

4. Can I get the City’s contribution before July 1?

The City will, in some circumstances, contribute funds to your Health Savings Account in advance. Please contact the Human Resources Department for information about the early funding option or review the specific details of the Policy 3.10 – Health Insurance (PDF)

5. What is the best way to make contributions to my Health Savings Account?

The best way to contribute to your Health Savings Account is by payroll deductions. Contributions made through payroll deductions are pre-tax, and allow the City to ensure the Federal limit is not exceeded.

6. Can I pay for my qualified medical expenses from another account and then reimburse myself with my Health Saving Account funds?

Yes as long as you have Health Saving Account funds available and you keep records to prove the withdraw from your Health Saving Account account was for a qualified medical expense. Please view the Qualified Medical Expenses (PDF).

7. Should I deposit funds directly into my Health Savings Account and then reimburse myself for qualified medical expenses?

No. Any contributions made outside of the payroll deduction process could jeopardize the timeliness of you receiving funding from the City. Please contact the Finance Department before depositing any funds directly to your Health Savings Account. Please view the Qualified Medical Expenses (PDF).

8. What should I do with a refund from my medical provider or insurance company?

Do not deposit the funds into your Health Savings Account until you consult with your financial institution. This is important to ensure the amount is coded by your financial institution as a reimbursement and not as a deposit for contribution limit considerations. Ask your financial institution if they charge a fee for processing the deposit as a reimbursement.

9. Can I use my Health Savings Account funds for medical expenses (i.e. dental and vision) not covered under my health insurance plan?

Yes, so long as the IRS defines the expenses as being a Qualified Medical Expense (PDF).

10. If I use my Health Savings Account funds for medical expenses (i.e. dental and vision) not covered under my health insurance plan, does the amount apply to my health insurance plan deductible?

No. You can use the funds for other qualified medical expenses but the amount paid with your Health Savings Account funds does not apply to your health insurance deductible. Please view the Qualified Medical Expenses (PDF).

11. What happens to my Health Savings Account if I terminate employment with the City?

The account and the funds in the account belong to you. However the City will not make any additional contributions after your termination date.

12. Can I use my Health Savings Account funds for any reason other than qualified medical expenses?

If you use your Health Savings Account funds for any purpose other than qualified medical expenses you may be subject to tax penalties. Please view the Qualified Medical Expenses (PDF).