Health Savings Account

  • If you enroll in the Gold HDHP Plan or Gold HDHP Limited Plan offered by Naperville Community School District 203, you may be eligible to open a Health Savings Account (HSA) with BMO Harris Bank to help you save pre-tax dollars to pay for out-of-pocket health care expenses. The funds in your HSA belong to you and may be used tax-free for current or future IRS qualified medical expenses or may be left to accumulate for use during retirement. The funds deposited into the account and the earnings are tax-deferred; funds withdrawn for IRS qualified medical expenses are tax-free.

    To be eligible to open or contribute to an HSA, you must be:

    • Covered by a qualified HDHP
    • Not enrolled in Medicare
    • Not listed as a dependent on another person’s income tax return
    • Not covered by another non-HSA qualified medical plan - including an HFSA

    Your spouse’s non-HSA qualified coverage does not affect your ability to contribute to an HSA as long as it does not cover you. However, if you or your spouse participates in a Health Flexible Spending Account (HFSA), you are considered “covered” by a non-HSA qualified plan and as such cannot contribute to an HSA, unless the FSA is limited-purpose and applies only to dental and/or vision expenses.

    Contributions to an HSA may be made by an employee using pre-tax payroll deductions, bank deposits, or a one-time rollover from an IRA, as well as through contributions made by District 203. HSA contributions are limited by the U.S. Internal Revenue Service based on the calendar year.

    Currently, District 203 is committed to contributing to the HSA of each employee who enrolls in the Gold HDHP or Limited Gold HDHP in one lump sum upon eligibility. District 203 contributes $1,000 for employee only coverage and $2,000 for family coverage, deposited on the first payroll in January when the election is made during the open enrollment period. Contributions will be prorated for employees not eligible for an HSA for the entire year.

    Funds for IRS qualified medical expenses may be withdrawn tax- and penalty-free as long as the expenses are incurred after the HSA was established. You may even use HSA funds tax- and penalty-free for the qualified medical expenses of your IRS-defined tax dependents even if they are not covered under the HDHP. 

    High Deductible Health Plan (HDHP) with HSA FAQ