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 [1] 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 [1] medical plan. For new hire employees who elect to enroll in the HSA PPO [1] medical plan during 2020, VMware will contribute $187.50 for Individual coverage and $375 for Family coverage per calendar quarter to your HSA account. Existing VMware employees enrolled in the HSA PPO [1] medical plan as of January 1, 2020 received their employer funding of $750/$1,500 (Employee Only/Family) in January of 2020 and are not eligible for quarterly funding. If you and your spouse/domestic partner, both work for VMware and are separately enrolled in the HSA PPO [1] medical plan you are only eligible for employer funding up to $750/$1,500 (Employee Only/Family). Employer funding is yours to keep and are portable if you leave VMware.

VMware HSA Funding for New Hires

Quarter Enrolled in HSA PPO HealthEquity Account Funded
January 1 – March 31 April 15, 2020
April 1 – June 30 July 15, 2020
July 1 – September 30 October 15, 2020
October 1 – December 31 January 15, 2021

All existing employees enrolled in the HSA PPO as of January 1, 2020 will receive employer funding of $750/$1,500 (Employee Only/Family). All new hires as of January 1, 2020 will receive employer funding on a quarterly basis (divided by 4). VMware funding based on coverage at the end of each quarter. Must be active on the last day of the quarter. 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:

* 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 [1] plan for your medical coverage during annual or new hire enrollment to be eligible for the HSA. In addition, you must NOT be:

If you are not eligible for an HSA based on the above, you have the option to enroll in the HSA PPO [1] 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 [2] [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 [3] [VMware network access required] site. Refer to the Workday Quick Reference Guide: Change HSA Contribution [4] [VMware network access required]. 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 [2] [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 [2] [VMware network access required] for more information and complete an HSA Transfer Form [5].

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 [6].