Health Savings Account

Pima County funds a portion of your HSA based upon level of coverage (Only available with the High Deductible Health Plan):

• Employee Only: $1,000
• Employee & Dependent(s): $2,000

You may contribute up to $3,550 (Single) or $7,100 (Family) for 2020.

There is an optional catch-up option for participants 55 and over, you may contribute an additional $1,000

Since the IRS maximums are total amounts, you will need to factor in the County contribution when determining your allowable maximum contribution. The management of the HSA and additional related funding is the responsibility of the employee.

The funds in this account belong to you, not the County. That means the balance will roll over from year to year if it is not spent and the funds will continue to be available to you even after your employment at Pima County ends. Please note, funds in the HSA will remain tax-free as long as they are used to pay for qualified medical expenses (including dental, vision, etc.). The interest earned is also tax free.

These funds may be invested and earnings are also tax free. If funds are withdrawn for non-qualified medical expenses, those funds are subject to a penalty as well as income tax.

Since HSAs are the property of the employee (the taxpayer) it is your responsibility to manage funding amounts. There are several options available for funding your HSA, (lump sum payment, bi-weekly payroll deduction, transfers from IRA, etc.) Pima County will deposit amounts based on your enrollment level and your payroll deduction authorization.

You will need to manage all other details. In order to prevent tax consequences, it will be your responsibility to ensure that payment requests are for qualified medical expenses. Typically, HSA financial administrators (HSA Bank) don't scrutinize claims to ensure compliance. It is the taxpayer's responsibility.

Pima County will pay the HSA administrative fee.