Health Savings Account (HSA)
If you enroll in the High Deductible Health Plan (HDHP), you may be eligible to open a Health Savings Account (HSA). An HSA can help you pay for eligible health care expenses such as medical, dental, vision care, and prescription drugs.
What’s In It for Me?
- Cabarrus County contributes FREE money to your HSA! See the chart below for contributions.
- You can set aside pre-tax money from your paycheck to help pay for additional out-of-pocket health care expenses. HSAs give you triple tax advantages:
- Your contributions to the HSA are not taxed*
- Payment of qualified expenses is tax-free
- Earnings are tax-free*
- The HSA is an individual account you own! The entire balance is yours to keep. If you leave the county, the account goes with you.
- You can make changes to your HSA contributions at any time at the Local or State Federal Credit Union.
- Unused funds always roll over to the next plan year.
- Get the freedom to control and manage your health care spending and savings to grow your balance for future qualified medical expenses, such as those in retirement.
*State taxes may still apply in CA and NJ. For detailed tax implications of an HSA, please contact your professional tax advisor.
How Much Can I Contribute?
Contributions cannot exceed the annual IRS maximums.
| Coverage Type | 2024 Cabarrus County HSA Contribution* |
2024 Maximum Employee Contribution | 2024 IRS Contribution Limit |
|---|---|---|---|
| Employee Only | $1,000 | $3,150 | $4,150 |
| Employee + Spouse | $1,000 | $7,300 | $8,300 |
| Employee + Child(ren) | $1,000 | $7,300 | $8,300 |
| Employee + Family | $1,000 | $6,750 | $7,750 |
| Age 55+ Catch-up Contribution | Additional $1,000 | ||
*Twice a year (January & July), Cabarrus County deposits $500 into your HSA, for a total of $1,000 annually (new hires receive a pro-rated amount).
HSA Eligibility Requirements
- You must be enrolled in the Cigna HDHP.
- You cannot be claimed as a dependent on someone else’s tax return.
- You cannot be covered under another non-qualified health plan, including your spouse’s Health Care Flexible Spending Account.
- You cannot be enrolled in Medicare or Medicaid.
- You cannot receive coverage through a military or veteran’s health program (i.e. Tricare).
For further information on HSA features and restrictions, refer to IRS Publication 969.
See the Benefits Guide or benefits summary for detailed information.
