Health Savings Account (HSA)

Overview

An HSA is a tax-free account you can use to help pay for eligible health care expenses now and in the future if you’re enrolled in HSA Value, HSA Advantage or a Kaiser HSA medical option.

The benefits of an HSA are hard to beat:

• You get triple tax advantages. You can contribute before-tax money to your account, your account can grow by earning tax-free interest, and you pay no taxes when you use the money for eligible expenses.
• You can use it now or save for later. You can use the money in your account to pay for current or future eligible health care costs.
• You can invest it. If you choose to let your account grow, you can invest the money in a choice of investment options.
• You can roll it over. Your unused account balance rolls over from year to year.
• You keep the money. The money in your account is always yours, even if you change medical options, change jobs or retire.

Eligibility

• You are eligible to contribute to an HSA if you are enrolled in the HSA Value, HSA Advantage or Kaiser HSA medical option.
• You are not eligible to contribute to an HSA once you enroll in Medicare.

Your Contributions

You decide how much you want to contribute to your HSA, up to annual IRS limits:

• Employee Only Coverage: $4,300 in 2025
• Other Coverage Levels: $8,550 in 2025
• Catch-up Contribution: $1,000 if you are age 55 or older and not Medicare-eligible

You may change your HSA contribution at any time. Experts recommend contributing as much as you can afford, up to IRS limits.

The more you contribute, the more you’ll benefit from your HSA’s triple-tax advantages. And remember, the money in your HSA is always yours.

Eligible Health Care Expenses

The IRS defines which expenses you can pay with an HSA. Eligible expenses include:

• Most medical care and services
• Prescription drugs and over-the-counter medications with a doctor’s prescription
• Non-cosmetic dental care
• Vision care
• Orthodontia
• COBRA coverage
• Qualified long-term care expenses
• Health insurance premiums for individuals receiving unemployment compensation
• Medicare and retiree health insurance premiums

View a comprehensive list of qualified health care expenses.

Coordinating with a Flexible Spending Account (FSA)

Because the IRS prohibits contributions to both a Health Care FSA and an HSA, RRD offers a “limited-use” Health Care FSA for employees who enroll in HSA Value, HSA Select or HSA Advantage.

• You can use your FSA for eligible out-of-pocket dental and vision expenses at any time.
• You can use your FSA for eligible medical and prescription drug expenses after you’ve met your deductible.
• You can’t be reimbursed by both accounts for the same expense.