HSA Contributions and Investments

2024 Plan Information

How to Contribute to Your HSA

There are two ways you can contribute to your HSA:

  1. Set up automatic paycheck contributions. You elect an annual amount, and each month, a prorated amount will be deducted from your paycheck before taxes and contributed to your HSA. You may update your contribution election at any time during the year.
  2. Make a one-time lump-sum contribution. At any time in the year, you may contribute a lump-sum to your account. Since your paycheck contributions are deposited into your account month-by-month, it can take a long time to accumulate finds in your HSA. You may want to consider a lump-sum contribution if you want money available at the beginning of the year or, find yourself with an unexpected bill, and want to contribute enough to cover the cost of the service. When you make a lump-sum contribution, you receive the tax savings when you file your taxes for that year.

Regardless of which way you choose to contribute to your HSA, you are responsible for making sure your total annual contribution does not exceed the annual IRS limit.

To set up automatic contributions or make a one-time contribution:

  1. Type benefits in your browser.
  2. Click Health Savings Account.
  3. Click Make Contribution under Contributions.

 

IRS Contribution Limits

With IRS limits that are significantly higher than for Flexible Spending Accounts, you can maximize your tax savings by making the full contribution amount.

2023 Annual Contribution Limit

  • Individual coverage: $3,850
  • Family coverage: $7,750
  • If you are age 55 or older, you may make an additional catch-up contribution of $1,000 annually until you become eligible for Medicare.

2024 Annual Contribution Limit

  • Individual coverage: $4,150
  • Family coverage: $8,300
  • If you are age 55 or older, you may make an additional catch-up contribution of $1,000 annually until you become eligible for Medicare.

Investing Your Health Savings Account Dollars

When your HSA account balance reaches $500, you can choose to invest any funds in your account over that amount in one or more available investment funds. Any earnings on the funds in your HSA are distributed tax-free if used to cover eligible health care expenses now or at any time in the future. Note that investment funds may fluctuate with market conditions and that past performance is no indication of future results. It is possible that the market value of your HSA will decrease.

See the HSA Investment options.

Investing Your HSA Funds

When your HSA account balance reaches $500, you may invest any funds in your account over that amount in one or more available investment funds. Note: Investment funds may fluctuate with market conditions and that past performance is no indication of future results. It is possible that the market value of your invested HSA funds may decrease.

See the HSA Investment options.

Get Started

To begin investing:

  1. Type benefits in your Morgan Stanley browser.
  2. Click the Reimbursement Accounts tab.
  3. Click Manage Your Account under Health Savings Account.
  4. Click Investment.
  5. Click Apply for an Investment Account.
  6. You can make a one-time contribution or set up automated investments by selecting Setup Automatic Investment Transfers under the Investments tab. You should be automatically transferred to the UMB website.