Health Savings Account (HSA) FAQ

An HSA is a personal savings account that you use to save and pay for healthcare. You can open an HSA if you’re enrolled in an “HSA-qualified” health plan. With an HSA, you have a tax-advantaged way to help you save for future medical expenses, plus greater flexibility in using your healthcare dollars. A few important HSA features: You own the account, so the money is yours to keep forever, even if you change jobs or retire; there is no “use it or lose it” rule, so unused money in your HSA rolls over to the next year; your HSA deposits and withdrawals (to pay for eligible expenses) are tax-free.

To be eligible to open an HSA, you:  

• Must be covered by an HSA-qualified health plan
• Cannot have other Non-HSA qualified health coverage
• Cannot be enrolled in Medicare (A or B) or Tricare
• Cannot be claimed as a dependent on someone else’s tax return
• Cannot have a general purpose (medical, dental, vision) Flexible Spending Account or Health Reimbursement Account, nor can your spouse
• Cannot have an unused FSA balance on December 31of the FSA plan year.

Health coverage is considered Non-HSA qualified when the medical plan pays benefits without you having to meet a deductible, or, if the deductible does not meet certain IRS guidelines.

• PPOs
  
• HMOs
• Health Care FSA plans that reimburse you for medical expenses
• Medical plans that have a deductible less than $1,400 per Individual or $2,800 per family in 2022.

When you open an HSA, you save on taxes in three ways:  

1. The money you contribute to your HSA is tax-free. You can maximize your tax savings by contributing up to the maximum amount allowed by the IRS each year.
2. Any interest or investment earnings from your HSA are tax-free.
3. When you withdraw money from your HSA to pay for eligible healthcare expenses, those withdrawals are tax-free.

It’s important to note that these tax benefits apply to federal income taxes only. State taxes may still apply. Consult your tax advisor for details.

It is important to know how much you can contribute to your HSA to avoid excess contributions, which are taxed. Both the amount you contribute and the amount NVIDIA contributes to your account accumulate toward the annual maximum allowed by the IRS.

The limits for 2023 are listed below:

You are responsible for following contribution rules and limits.

NVIDIA’s contribution to the HSA varies by plan and coverage level. NVIDIA’s contribution will range from $1,000 to $3,000.

The company’s contribution to the HSA is made in one lump-sum payment in late Jan. of each year. New hires will receive a pro-rated company contribution in the month following their hire date. For example, if your hire date is Jan. 6. you’ll receive the contribution in Feb.

• You can set up contributions as a flat amount spread out equally over pay periods; or
  
• You can set up a custom contribution, which means you can choose when and how much you want deducted from your pay check(s).

Yes you can (see your Fidelity welcome kit for details), however this could cause you to go over the annual IRS maximum. This could also prevent further contributions from the company.

No. You must be an active employee on the day the company contribution is funded.

You are responsible for making sure you do not exceed the maximum HSA contribution limit. NVIDIA uses your payroll deductions and company contributions to stay within the IRS limits. If you contribute money directly to your HSA at Fidelity, this may cause you to exceed the limit. In this case, you should withdraw the excess amount, plus any interest and/or investment earnings on the excess amount, before April 15 of the following year. You can request a withdrawal online or by contacting Fidelity, our HSA administrator, at 800 544-3716. You’ll be required to pay income tax on the excess contributions and any earnings from the excess contributions. If you fail to withdraw the excess contribution by April 15, you’ll be subject to a 20% penalty on the excess amount. Consult your tax advisor for details.

You should consider an HSA if:  

• You can afford to pay the deductible
• You’re in good health
• You use preventive services that are covered at 100%
• Don’t have a chronic condition
• Like low to no premiums per paycheck
• Would like to take advantage of triple tax savings, and
• Receive generous employer contribution toward your HSA

A Health Plan that qualifies for an HSA must meet certain IRS requirements, which include having a minimum deductible. The health plan must also limit the maximum you spend out of your pocket for healthcare expenses. This is called the out-of-pocket maximum.  

The funds in your HSA can be invested in securities (stocks, bonds, mutual funds, etc.) or a combination of cash and securities. Funds not invested can be held in cash or a core fund.

View the fund offerings and learn more at netbenefits.com.

Yes. You may have more than one HSA account, but additional fees may apply if you maintain more than one account. If you like, you can close your other HSAs and transfer the funds to your Fidelity HSA. To roll over or transfer funds from an old HSA to a Fidelity HSA, you must complete a Rollover/ Transfer Request form and submit it to Fidelity.

It’s also important to note that the total amount you contribute to all HSAs you own is still limited to the annual IRS limit. For 2023, the IRS contribution max is $3,850 for individuals and $7,750 for families. If you are age 55 or older, you can contribute an additional $1,000. These limits include both your contributions and NVIDIA’s.

As often as you like. Unlike a Flexible Spending Account, HSA contributions can be changed at any time without a qualified life event.

No, you do not. However, we recommend it to help maximize the value of your medical plan. If you do not elect and open an HSA, you will NOT receive the annual company contribution made to the account at the end of January (or in the first paycheck of the month following your hire date for new hires).

If you die, your HSA will pass to your surviving spouse, tax-free. If you name HSA beneficiaries other than your spouse, that money will be disbursed to them and subject to applicable taxes.

Yes. However, under IRS rules, you’re not allowed to have Health Care FSA and an HSA. However, you can have both an HSA and a Limited Purpose FSA. A Limited Purpose FSA lets you set aside pre-tax dollars to reimburse you for eligible dental and vision expenses only.

You do. All the money in your HSA—including NVIDIA’s contributions—is yours to keep forever, even if you change jobs or healthcare coverage.

Under an HSA qualified health plan, your deductible applies to non-preventative covered services, including medical, behavioral health and prescription drugs. For families, meeting a deductible is a bit different under an HSA qualified health plan than under a traditional plan (like a PPO). In some cases, like with the NVIDIA HSA Plus Plan, the whole family has to meet the family deductible before the plan begins to pay benefits. In other cases, like with the NVIDIA HSA Plan, the plan begins paying benefits for an individual family member after an individual member has met his or her deductible.

No. Instead, tell your doctor’s office that you are covered by an HDHP. Remember, preventive services in-network are covered at 100%, and other services provided in the doctor’s office are based on the allowable charge after your provider has submitted a claim to Cigna or Kaiser. After your claim is processed, Cigna will send you an Explanation of Benefits that shows the amount you owe your physician.

Yes. You may still be covered by an HDHP HSA Medical Plan after you reach age 65 and become eligible for Medicare. You also may keep your HSA and continue to use it to pay for eligible healthcare expenses. However, you may not contribute to your HSA—nor can NVIDIA contribute to your account—after you reach age 65 and are enrolled in Medicare.

If you’re seeing “Employer HSA Co”, on your pay statement, you’re enrolled in a medical plan that offers a contribution to a Health Savings Account. You’ll notice the Employer HSA Co line item is listed in both the earnings and deductions section of your paycheck, this is an in and out transaction. The earnings must be reported because some states (Alabama, California, and New Jersey) impose state taxes on HSA funds. Those states do not recognize HSA and the earnings are considered taxable income. The employer contribution will be deposited directly into your Fidelity HSA account.