Health Savings Account (HSA)
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan. Combined, the HSA with the HSA PPO medical plan lets you choose not only where your money goes, but how you spend it, giving you more direct choice over your healthcare. You decide how much money to contribute through payroll deductions and your savings are deposited tax-free.
VMware HSA Funding
VMware believes in the value of the HSA PPO medical plan. As part of 2017 Open Enrollment, VMware contributed a one-time payment to HSA PPO re-enrollees of $750 for Individual coverage and $1,500 for Family coverage. For HSA PPO new adopters VMware contributed a one-time payment of $1,500 for Individual coverage and $3,000 for Family coverage.
For employees who elect to enroll in the HSA PPO medical plan during 2017, VMware will contribute $187.50 for Individual coverage and $375 for Family coverage per calendar quarter to your HSA account. These funds are yours to keep and are portable if you leave VMware.
VMware HSA Funding
|Quarter Enrolled in HSA PPO||HealthEquity Account Funded|
|January 1 – March 31||April 15, 2017|
|April 1 – June 30||July 15, 2017|
|July 1 – September 30||October 15, 2017|
|October 1 – December 31||January 15, 2018|
1 VMware funding based on coverage at the end of each quarter. Must be active on the last day of the quarter. Rehires within the same plan year, who already received a one-time payment to their HealthEquity account are not eligible for quarterly funding. Paid Interns are not eligible for VMware funding. HealthEquity accounts funded the pay period following the close of quarter.
In addition to VMware funding, there are many advantages to opening a Health Savings Account:
- Triple-tax advantaged – The money you contribute goes in tax-free*, grows with interest tax-free, and comes out tax-free (as long as you use it to pay for eligible health care expenses). For 2017, you can contribute up to $3,400 for an individual and $6,750 for family, less any contributions made by VMware. In addition, account holders who are or turn age 55 or older by December 31st of the calendar year are eligible to make an annual catch-up contribution of up to $1,000 above the IRS limits. Those who intend to enroll in Medicare mid-year should pro-rate contributions each month.
- Watch it grow – Your unused funds roll over from year-to-year and grow with interest tax-free. Think of your HSA as your long-term health care savings plan to pay for expenses as they come up or in the future.
- You own it – VMware’s contribution and your own HSA contributions are yours. You can take your account with you when you retire or leave VMware for any reason.
* Employer and employee contributions to the HSA are tax-free for federal and most state taxes. However, HSA contributions are not tax deductible for AL, CA, and NJ.
You must elect the HSA PPO plan for your medical coverage during annual or new hire enrollment to be eligible for the HSA. In addition, you must NOT be:
- Covered under any other traditional health plan.
- Enrolled in Medicare or Medicaid.
- Covered as a dependent on another individual’s tax return.
- Enrolled in a Health Reimbursement Account (HRA) or General Purpose Flexible Spending Account (GPFSA).
- Currently receiving any health benefits from the Veterans Administration (or have received any in the last three months).
If you are not eligible for an HSA based on the above, you have the option to enroll in the HSA PPO non-eligible HSA plan. You are still able to receive the VMware funding, however it will appear as a taxable bonus on your paycheck instead of being deposited into a HealthEquity account. In order to receive the VMware funding as a taxable bonus, you must provide proof of alternate coverage that shows you are ineligible for an HSA. Please complete an HSA Proof of Other Medical Coverage Form and include your proof of alternate coverage, within 60 days of your benefit eligibility date.
During enrollment, you elect how much you want to contribute. You can change, stop or start contributions at any time via the Benefits Enrollment [VMware network access required] site or by contacting the Benefits Center at 1-888-VMWARE8, option ‘US Benefits’. You can also make an after-tax contribution after the calendar year and prior to April 15th of the following tax year deadline. This allows you to contribute up to the maximum IRS limit.
Managing Your Account
Our HSA administrator, HealthEquity makes it easy to manage your account. You will receive a debit card for eligible expenses and you can also submit receipts for reimbursement. Visit the HealthEquity secure website, where you can view balances, check on payments, review contributions, and much more. If you currently have an HSA account from a previous employer, you have the ability to roll those funds over into your VMware HSA account. Visit HealthEquity for more information and complete an HSA Transfer Form.
Once you have a balance of $1,000, you can invest your savings. HealthEquity offers several mutual fund options you can choose from.
For more information on the Health Savings Account review the HSA Guidebook.
1-888-VMWARE8, option ‘US Benefits’
2017 HealthEquity HSA Education Session [Registration required]
HealthEquity Mobile App
Health Savings Account vs. Flexible Spending Account New Hire Benefit Byte Video [VMware network access required]
HealthEquity Transfer Form
HSA Member Guide
HSA Proof of Other Medical Coverage Form
IRS Publication 502 (Medical and Dental Expenses)
IRS Publication 969 (Health Savings Accounts and Other Tax-Favored Health Plans)
Medical and Health Savings Account New Hire Benefit Byte Video [VMware network access required]