Health Savings Account

If you enroll in the Health Savings Plan, you can open a health savings account (HSA), administered by HealthEquity. 

An HSA is like a savings account for your health care expenses. NetApp automatically funds the HSA each year you participate in the plan, and you can contribute on a pre-tax basis through convenient paycheck deductions. Use the money to pay for eligible health care expenses now or anytime in the future. 

Is an HSA Right for You?

Watch this short video for an introduction to the HSA.

 

How the HSA Benefits You

You can spend your HSA funds on eligible health care expenses, but there’s even more value in saving your HSA funds.

  • When you save your HSA funds, your dollars can grow year over year and become part of a long-term savings strategy for retirement.
    • The money in your account rolls over from year to year. You won’t lose your unused balance at the end of the year like you would with a flexible spending account (FSA).
    • Your savings and earnings are always yours. Your HSA balance is yours to keep even if you change medical plans or leave NetApp.
  • The HSA is triple tax-advantaged:
    • No federal tax on deposits. Your payroll contributions go into your account before taxes are withheld, lowering your taxable income.
    • No tax on earnings. Interest and investment earnings grow tax-free, unlike a traditional IRA, where investment earnings are taxed.
    • No tax on withdrawals. The money you withdraw—today, tomorrow or in the future—to pay for eligible health care expenses is not subject to taxes.

Contributions Come from NetApp and You

NetApp automatically contributes to your HSA. NetApp will contribute $800 for individual coverage and $1,600 if you cover dependents and are hired on or before June 30. If you are hired after June 30, you will receive $400 for individual coverage and $800 if you cover dependents. You can spend this money on eligible health care expenses anytime, or save it for the future.

NetApp’s HSA contribution, along with the dollars you save because of the HSP’s lower paycheck contributions, are more than enough to help you pay the deductible. So, what you pay makes the Health Savings Plan deductible comparable to the Traditional Plan deductible—at a lower biweekly paycheck contribution.

You can contribute to your HSA. You choose how much you’d like to save in your HSA each year.

In 2017:

Individual coverage equals $1840; Family coverage equals $4720

In 2018:

Pre-tax contributions are automatically made from your paycheck to your account. You can contribute to the account in lump-sum amounts through electronic fund transfers or personal check through April 15 of the following year—the same day you file your taxes—for the current tax year.

HSA Quick Facts

HSA eligibility

You can open an HSA if you’re enrolled in the Health Savings Plan. 

However, due to IRS restrictions, if you’re age 65 or older or eligible to receive Medicare, you cannot contribute to an HSA, and NetApp cannot make a contribution on your behalf.

Maximum contributions

You can contribute up to the IRS maximums each year.

For 2017, your total contributions cannot exceed $3,400 (for individual coverage) or $6,750 (if you cover dependents), including money from NetApp. If you are age 55 or older, you’ll also have the opportunity to contribute an additional $1,000 in catch-up contributions in 2017.

For 2018, your total contributions cannot exceed $3,450 (for individual coverage) or $6,900 (if you cover dependents), including money from NetApp. If you are age 55 or older, you’ll also have the opportunity to contribute an additional $1,000 in catch-up contributions in 2018. 

How to contribute

You contribute money to your HSA like you would a direct deposit. You control how much, if any, you’d like to save in your HSA. Pre-tax deductions are automatically made from your paycheck to your account.

An important note for delaying Medicare coverage and Social Security benefits: If you’re already at least six months past your full retirement age when you sign up for Social Security retirement benefits, Social Security will give you six months of “back pay” in retirement benefits. This means that your enrollment in Medicare will also be backdated by six months. Under IRS rules, that leaves you liable to pay six months of tax penalties on your HSA. To avoid these penalties, it is critical that you stop your HSA contributions six months before you apply for Social Security retirement benefits.

How does an HSA help you save money? You don’t pay federal taxes on your contributions, which lowers your taxable income and helps you save money. (Note: States can choose to follow the federal tax-treatment guidelines for HSAs or establish their own; some states tax HSA contributions—currently Alabama, California and New Jersey. If you have questions about your tax implications, consult your tax advisor.) In addition, you never pay federal taxes on any earnings or withdrawals.
Eligible HSA expenses You can use HSA funds to pay for qualified health care expenses that are not covered by insurance—i.e., any medical, dental and vision expense that you could deduct on your tax return can be paid from your HSA. For example:
  • Deductibles
  • Coinsurance
  • Prescription drugs
  • Dental and vision expenses
  • Alternative medicine, including acupuncture and chiropractic services

You can use HSA funds to pay for qualified health care expenses for yourself, and for your dependents who qualify as IRS dependents for federal income tax purposes (regardless of whether they are enrolled in the NetApp Health Savings Plan).

Accessing your HSA There are two ways to pay for qualified expenses from your HealthEquity HSA: 
  • Use your HSA to pay your bills online through www.anthem.com/ca.  
  • Swipe your HSA debit card at point of service.
Checking your HSA balance Log in to www.anthem.com/ca and select Access your HealthEquity HSA.
Unused HSA funds Unused HSA money rolls over year to year and can earn interest tax-free. You can use it next year or save it for the future, including at retirement.
Investing your HSA funds

When your account balance reaches $1,000, you may invest your funds. All interest and investment earnings are yours to keep.

Once you set up your investment account, you'll choose how you want the funds to be allocated among the available mutual funds.

Who owns the money? You own the money in your account and can take it with you if you change medical plans, retire or leave the company. With an HSA, there’s no “use it or lose it” rule.

HSA Eligibility

There are a few restrictions to who may participate in an HSA. Please review the criteria to ensure you qualify before electing to contribute to the HSA:

  • You must be a participant in a qualifying high deductible health plan (HDHP), such as the Health Savings Plan.
  • You cannot be covered by any other health plan.
  • You must not be covered by an unlimited healthcare reimbursement account (HRA) and/or an unlimited health care flexible spending account established for you, your spouse or any other family member.
  • You cannot be enrolled in Medicare (Part A and/or Part B).
  • You cannot be covered by a government-sponsored health plan for veterans.
  • You cannot be claimed as a dependent on someone else's tax return (spouses not included).

Note: Due to IRS restrictions, if you’re age 65 or older or eligible to receive Medicare, you cannot contribute to an HSA, and NetApp cannot make a contribution on your behalf.

Eligible Health Care Expenses

You can use your HSA to pay for medical, dental and vision expenses, including:

  • Deductible and coinsurance
  • Prescription drugs and alternative treatments, such as acupuncture and chiropractic services

You cannot use your HSA to pay for health insurance premiums, except for premiums related to COBRA, Medicare or long-term care insurance, or premiums while receiving unemployment.

If you use your HSA for a non-qualified expense, that amount will be subject to normal income tax plus a 20% tax penalty.

Note: Eligible medical, dental and vision expenses for domestic partners and children of domestic partners are not reimbursable under IRS regulations. However, if your partner and/or partner’s child(ren) qualify under section 152 of the IRS code as a taxable dependent, you may be eligible to be reimbursed for medical, dental and vision expenses incurred by your partner and partner’s child(ren) under your HSA. Your domestic partner may open an HSA at a financial institution of his/her choice and deposit up to the IRS maximum.

Use the HSA with an HSA Compatible FSA

If you are contributing to a health savings account (HSA), you are ineligible to enroll in NetApp’s “general purpose” health care flexible spending account (FSA). As an alternative, you may choose to enroll in the “HSA Compatible” FSA. The annual contribution limit for this plan ($2,550 for 2017 and $2,600 for 2018) is limited to qualified dental and vision expenses. Depending on your planned expenses, the "limited purpose" health care FSA may be attractive because it allows you to reserve your health savings account (HSA) balance for medical expenses only.

HSA Tip Sheets

Here are some tips on how to manage your health care expenses with an HSA, and how NetApp’s contribution can help cover much of your annual deductible for the Health Savings Plan.

A trip to the ER
A visit to a specialist
A prescription for managing your expenses
Heartburn over your medical bill