Human Resources Mission, Vision, and Strategic Goals For You

Health Savings Account (HSA)

Health Savings Account (HSA)

Employees who elect the Purdue Global Consumer-Driven Health Plan (CDHP) may be eligible to participate in an HSA — a bank account set up in the employee's name to which Purdue Global contributes funds that may be used for eligible medical, prescription, over-the-counter, vision, and dental expenses incurred by the accountholder as well as their eligible dependents (e.g., spouse, IRS-qualifying child — one they can claim on their taxes) during their HSA coverage period.

HSAs offer a triple-tax benefit:

  1. You can contribute to them on a pre-tax basis (lowering your taxable income).
  2. Your balance grows tax-free interest over time as it is a true savings account.
  3. You can make tax-free withdrawals and distributions to cover qualified medical expenses.

These funds roll over from year to year with no limit and the account follows the accountholder, even if they leave Purdue Global employment. Once a certain balance is reached, funds may also be invested. See resources below for more detail.


Purdue Global Employer HSA contributions
Employee only $300
Employee + 1 $400
Family (employee + 2 or more) $500

www.payflex.com
Customer service - 844-729-3539

Reources

Coming in 2024 – HSA Bank

Health Savings Account (HSA)

What to Expect – Transition from PayFlex to HSA Bank in 2024

Health Savings Account (HSA)

Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) let you use pre-tax dollars to pay for qualified healthcare expenses.

Your Purdue University/Purdue Global Resource Center, courtesy of HSA Bank, is a customized website for Purdue employees, which contains educational videos and information on the different medical savings accounts.

Employees who elect the Purdue Global Consumer-Driven Health Plan (CDHP) may be eligible to participate in an HSA — a bank account set up in the employee's name to which Purdue Global contributes funds that may be used for eligible medical, prescription, over-the-counter, vision, and dental expenses incurred by the accountholder as well as their eligible dependents (e.g., spouse, IRS-qualifying child — one they can claim on their taxes) during their HSA coverage period.

HSAs offer a triple-tax benefit:

  1. You can contribute to them on a pre-tax basis (lowering your taxable income).
  2. Your balance grows tax-free interest over time as it is a true savings account.
  3. You can make tax-free withdrawals and distributions to cover qualified medical expenses.

These funds roll over from year to year with no limit and the account follows the accountholder, even if they leave Purdue Global employment. Once a certain balance is reached, funds may also be invested. See resources below for more detail.

Purdue Global Employer HSA contributions
Employee only $300
Employee + 1 $400
Family (employee + 2 or more) $500

 

HSA Bank Debit Card

When your first account with HSA Bank is opened, you will be mailed a debit card and a welcome kit with information.  You may request another card for an authorized signer (e.g., spouse, dependent) at no cost, but additional cards after that will be $6 each.

For security purposes, debit cards have a daily transaction limit of $3,000 for point-of-sale purchases.

Customer Identification Program (CIP)

Before you can access your HSA funds, HSA Bank is required to validate your identity through a Customer Identification Program, or CIP, process (all banks are required by federal regulation to do this when a person is attempting to open an account). 

Typically, your identity is verified with no issues.  Occasionally, however, more information is needed to further verify your identity. Most often this occurs when there has been a recent change in your name or address. In this case, HSA Bank will reach out up to three times to request two unique forms of identification which must come directly from you.  This documentation can be submitted to HSA by mail, fax, or by uploading to their secure website.  The details of what is needed and where to send it will be found in the letters from HSA Bank if you fail the CIP process or you can call HSA Bank using the number on the left side of the page.

You will not be able to access your HSA funds until you have pass the CIP process.  Additionally, if the requested documentation is not received by HSA Bank within 60 days, your account will be closed and any contributions made to it will be returned over time (based on the contribution date), less taxes.  If this happens, you will need to take extra steps to reopen the account, must pass CIP, and any missed contributions from Purdue Global would only apply going forward, beginning with the date the account is reopened.  Questions should be directed to HSA Bank at 1-800-357-6246.

Their first validation begins with a physical residential address; therefore, if you've only listed a P.O. Box address in our system, you will need to update your address before your account can be opened.

IRS Contribution Limits

You are responsible for assuring that total contributions to your HSA from all sources combined do not exceed the limits below. As a reminder, these assume you are eligible for the HSA all year. If not, the amounts would be prorated. Changing plan tiers midyear (i.e., from family to individual) will also impact your limits. Your age may also affect your limits. See Catch-Up Contributions in the next section.

Spouse tip: If your spouse also receives or makes contributions to an HSA through Purdue Global or another employer, you must collectively adhere to the contribution maximum family limit.

  • 2024: $4,150 for employee-only coverage or $8,300 for family coverage (employee + one or more)
  • 2023:$3,850 for employee-only coverage or $7,750 for family coverage (employee + one or more)

Catch-up Contributions

  • Federal rules also allow what are called “catch-up” contributions to an HSA. If you are age 55 or older, or will turn 55 any time during the plan year, you may contribute an additional $1,000 above the IRS limits in the previous section. 
  • Spouse tip:Eligibility to make catch-up contributions is based on the accountholder's age — not on their spouse's age. If the accountholder and the spouse are both 55 or older, the accountholder may still only make a $1,000 catch-up contribution.

Tax Forms Information

HSA Bank tax forms will be made available online at www.hsabank.com from the “View Statements” link on the Message Center tab and you will receive an email from HSA Bank when they are posted. They will not be mailed out automatically unless you opt into receiving paper copies. To opt in, log into HSA Bank, scroll down to the “Quick Links” box, and click “Statement Preferences.” In the Statements section, place a checkmark under "Paper" in the HSA Tax Documents row. You may also call HSA Bank at 1-800-357-6246 to request a paper copy. Be sure to verify your address on file with Purdue is up to date first.

1099-SA

  • Posted by January 31
  • Reports funds distributions (You will not receive this form if you did not withdraw/spend funds from your HSA in the prior tax year)
  • Required to report on IRS form 8889 when filing tax return 

5498-SA

  • Posted in May
  • Reports contributions to your HSA made in the prior tax year along with your HSA balance as of the end of December in the prior tax year
  • Informational only and is not required to file with your tax return

Resources

HSA Bank Customer Service
1-800-357-6246

Purdue University/Purdue Global Resource Center,

HSA Bank website

HSA Bank mobile app

Spending Accounts Comparison Chart