Health Savings Account (HSA)
If you are enrolled in one of the Agropur high deductible health plans (HDHP’s), you may be eligible to open a tax-free health savings account. The money in your HSA is carried over from year to year so you can budget for current and future expenses. Plus, you own the account so it’s yours to keep even if you change jobs or retire.
Agropur offers a Health Savings Account administered by UMB bank. If you are newly enrolled, you will receive a Welcome Packet from UMB bank delivered to your home address on file in Workday.
You must elect the amount you would like to contribute annually for the plan year effective on January 1st to participate.
HSAs can be a great vehicle to cover your out-of-pocket healthcare expenses, including your deductible. Your unused balance rolls over each year and accumulates tax-free.
| Coverage | 2025 IRS Annual Contribution Maximum |
|---|---|
| Coverage | 2025 IRS Annual Contribution Maximum |
| Single | $4,300 |
| Family | $8,550 |
| Catch-up contribution (Age 55 or older) | $1,000 |
| Rollover | Full Amount |
You can change your contribution amount during Open Enrollment or up to once per month any time during the year by submitting an HSA Change benefit event in Workday.
HSA Highlights:
- It’s yours to keep, like a personal checking account.
- There’s no “use it or lose it” rule. Your balance rolls over and accumulates year after year.
- You get a triple-tax advantage. Contributions are pre-tax, your account grows tax-free and you’re not taxed on the money you use to pay qualified medical expenses.
- When your balance reaches $1,000, you can invest additional funds in your HSA much like your 401(k) plan.
- Use it for qualified medical, dental, and vision expenses.
As you weigh your options, you should know HSAs are flexible savings tools you can change as needed to help you and your family save for your health care needs. If you are near retirement, an HSA may make sense because the money in the HSA can be used to offset costs of medical care or medical plan premiums after retirement.
To be eligible for an HSA:
- You must be covered under one of the Agropur’s health HDHP plans.
- You cannot be covered under any other health plan including a spouse’s FSA.
- You cannot be enrolled in Medicare, TRICARE, or VA benefits.
- You cannot be claimed as a dependent on another person’s tax return.
Can employees withdraw money from an HSA for non-medical expenses?
Yes, but if funds are withdrawn for nonmedical expenses before an employee turns 65, the employee must pay taxes on the money and a 20% penalty. If money is taken out after the employee turns age 65, the employee must pay normal income taxes but no penalties.
Visit https://www.irs.gov/pub/irs-pdf/p502.pdf for a list of qualified HSA expenses.
Visit www.irs.gov and search for IRS Publication 502 to learn more about eligible expenses.
UMB HSAs and Medicare
UMB Saving and Spending HSA Dollars
HSA & FSA Member Support
Quick Guide to HSAs
Top Questions About HSAs
HSA Name Change Request Form
HSA Beneficiary Designation FAQs
HSA eStatements Selection
HSA Qualified Medical Expenses
HSA Saver Fund List
HSAs and Medicare
