Health Savings Accounts (HSAs) for Former Employees
The HSA part of Consumer Directed HealthSelectSM helps you save money so you’re prepared for out-of-pocket health expenses. It also helps you lower your income taxes, because you can save up to a certain amount tax-free each year. Every Consumer Directed HealthSelect participant who is eligible to open an HSA should open one. HSAs are like tax-free nest eggs for health care expenses.
- You can use your HSA for qualified expenses, even if you change to a different health plan or change employers. The money stays with you.
- You can make and/or get tax-free contributions to your HSA – up to a certain amount set by the Internal Revenue Service (IRS) each year.*
- As a former employee, you are no longer eligible for State of Texas contributions to your account every month, but you can keep any contributions made while you were still employed with your state agency or higher education institution. Any contributions made by the state while you were still working count toward your annual maximum contribution. (See below.)
- You have access only to the money that’s actually in your HSA. You won’t have access to any money that’s been pledged to be deposited in the future.
- Any unused money in your HSA will carry over from one year to the next, so you won’t lose money in your account at the end of the year.
Visit the website for Optum Bank, administrator of Consumer Directed HealthSelect HSAs.
Annual HSA Contribution Limits* (January 1 – December 31)
|Description||Individual account||Family account**|
|2021 annual maximum contribution||$3,600||$7,200|
|2022 annual maximum contribution||$3,650||$7,300|
NOTE: Members who are 55 years or older can have an additional "catch-up" contribution of up to $1,000 per year, for 2021 and 2022.
*HSA contributions and limits may change from year to year, or based on eligibility requirements and the participant’s age. Maximums are set by the IRS and include all contributions – both pre-tax and post-tax – to an HSA.
**Includes the member plus any number of dependents enrolled in Consumer Directed HealthSelect.