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Health Savings Account (HSA)

VMware believes in the value of the HSA PPO medical plan.

For new hire and mid-year eligible employees who elect to enroll in the HSA PPO medical plan during the current calendar year, VMware will contribute $31.25 for individual coverage and $62.50 for Family coverage to your HSA per pay period, based on your effective date of medical coverage and coverage level. The per pay period amounts are based on the annual employer funding of $750 Individual/$1,500 Family divided by 24 pay periods. You do not have to contribute to your HSA to receive employer funding, however maximizing the tax advantages of an HSA allows you to save pretax money towards health expenses now or in the future.

VMware employees who re-enroll in the HSA PPO medical plan during Open Enrollment for the new calendar year will receive their employer funding of $750/$1,500 (Employee Only/Family) as a lump sum amount on the first payroll of the year and are not eligible for per pay funding.

If you and your spouse/domestic partner, both work for VMware and are separately enrolled in the HSA PPO medical plan you are only eligible for employer funding up to $750/$1,500 (Employee Only/Family) maximum.

Employer funding is yours to keep and is portable if you leave VMware. You can use these funds for any eligible out of pocket expenses under IRS Publication 502.

¹  Paid Interns are not eligible for VMware funding but are eligible to contribute to the HSA.

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 2023, you can contribute up to $3,850 for an individual and $7,750 for family, less any contributions made by VMware. If you and your spouse/domestic partner, both work for VMware and are separately enrolled in the HSA PPO medical plan, you can contribute up to $7,750 for your combined 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.

Eligibility 

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, 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 [VMware network access required] account.

Making Contributions

During enrollment, you elect how much you want to contribute. You can change, stop or start contributions at any time via Workday [VMware network access required] site. Refer to the Workday Quick Reference Guide: Change HSA Contribution [VMware network access required]. You can also make an after-tax contribution after the calendar year and prior to April 15^th 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 [VMware network access required] 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 [VMware network access required] 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.

Disclaimer: Ultimately, it is the employee’s responsibility to make sure that the amount contributed to the HSA is within federal guidelines. VMware cannot accept more than the single/family HSA limit plus the catch-up contribution. HSA contributions that go over the IRS annual contribution limits are not tax-deductible, and employees will be penalized an excise tax.

For more information on the Health Savings Account review the HSA Guidebook.