Citi Benefits Handbook
Health Savings Accounts (HSAs)
An HSA is used in conjunction with a qualified High Deductible Plan with HSA.
When you enroll in the High Deductible Plan with HSA, you are eligible to open an HSA through any bank or institution that offers one. HSAs were designed to work with High Deductible Plan with HSA to help you:
- Pay for expenses incurred before you meet your deductible;
- Pay for qualified medical expenses that are not otherwise reimbursable by the High Deductible Plan with HSA; and
- Save for future qualified medical and retiree health expenses on a tax-free basis.
To establish an HSA, you must:
- Be covered under the High Deductible Plan with HSA;
- Have no other health coverage except what is permitted under "other health coverage";
- Not be enrolled in Medicare Parts A and B or Medicaid; and
- Not be claimed as a dependent on someone else's tax return.
Regardless of your insurance you may visit Citi's on-site medical clinics for preventive care (health screenings and flu shots) and episodic care (if you are ill, have an emergency or accident at work or need non-prescription medications). You may also receive allergy injections if you have a prescription from your doctor and supply the allergy medications. Blood tests for monitoring health conditions with a prescription from your doctor can be done and will be billed to your insurance. Citi's on-site medical clinics are not a replacement for your own primary care doctor. If you established an HSA, you may not use Citi's on-site medical clinics for care that is considered impermissible. Examples of impermissible medical coverage include, but are not limited to: routine annual physical exams and ongoing treatment of chronic medical conditions.
Citi will contribute to your HSA if you:
- Enroll in the High Deductible Plan with HSA for 2024;
- Open a Citi HSA through Optum Financial; and
- Satisfy Citi's policies and procedures required to establish an HSA.
The annual contribution amounts are based on your medical plan coverage category and when you establish an HSA. Amounts paid are up to $500 for Employee Only coverage and up to $1,000 for any other coverage category. Citi's contribution is paid on a quarterly basis. Your HSA must be established by the following dates for you to be eligible for the Citi quarterly contributions.
Details of the deadlines to receive Citi's contribution to your HSA are below:
Note: To receive Citi's quarterly contribution, you must establish an HSA by accepting the terms and conditions, and satisfy Citi's policies and procedures requirements by the deadlines listed above.
The maximums that you can contribute to an HSA for 2024 are:
- $4,1501 for an eligible individual with Employee Only coverage, and
- $8,3002 for an eligible individual enrolling in any other coverage category.
1 Includes Citi's annual employer contribution of up to $500, if you open an HSA through Optum Financial.
2 Includes Citi's annual employer contribution of up to $1,000, if you open an HSA through Optum Financial.
Under federal law, individuals who are 55 or older by December 31, 2024, can make a catch-up contribution of an additional $1,000 for 2024 and each year going forward.
If you do not enroll in the High Deductible Plan with HSA, by law you cannot establish an HSA.
Funds are available in the HSA once they have been contributed. This is different from the HCSA, where your entire elected contribution amount is available for reimbursement at the beginning of the plan year.
HSA Features
- You "own" your HSA; your account is portable.
- Contributions to an HSA can be made by individuals, employers or both.
- Contributions (subject to limits) can be changed at any time, as long as you continue to be enrolled in a qualified High Deductible Plan with HSA.
- Contributions (subject to limits) and earnings are tax-free under federal and many state income tax laws.
- Withdrawals (to pay for qualified medical, dental and vision expenses, as determined by the Internal Revenue Code [the "Code"]) are tax-free under federal and many state income tax laws.
- Withdrawals can be used to pay for qualified medical, dental and vision expenses, as determined by the Code, for you and your tax dependents.
- You do not forfeit funds that you do not use by year-end. Instead, HSA funds remaining in your account will roll over to the following year.
- However, you will pay a penalty of 20% on the disbursed amount that is not used for qualified health care expenses or health care expenses for dependents not considered as tax dependents under Section 152 of the Code.
Note: The HSA is not part of the Citigroup medical plans or any other employee benefits plan sponsored by Citi and it is not subject to ERISA.
The HSA and the LPSA
If you enroll in the High Deductible Plan with HSA and make tax-free contributions to an HSA, you cannot participate in an HCSA. HCSA enrollment is considered "impermissible medical care coverage" and disqualifies your contributions to an HSA. According to IRS regulations, if you enroll in the High Deductible Plan with HSA, you can enroll in the LPSA to reimburse yourself for eligible expenses such as those for vision, dental and preventive medical care. You may also enroll in an LPSA if you enrolled in the High Deductible Plan with HSA but are not enrolled in an HSA.
An LPSA works like an HCSA, except only certain types of expenses are eligible for reimbursement. See the "LPSA" subsection in the section for more information.
For more information about the LPSA, contact your tax adviser or visit the IRS website at www.irs.gov. From the home page, go to the search feature at the top of the page and enter "Ruling 2004-45."