Health Savings Accounts (HSA) - High Deductible Plans Only

A Health Savings Account (HSA) is a tax-advantaged medical savings account that individuals who enroll in a high-deductible health plan (HDHP) are eligible for. The funds contributed to an HSA are not subject to federal income tax at the time of deposit and HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the employee and are portable.  The entity that manages this benefit for the Town of Wellesley is Health Equity Partners.

The amount that can be contributed to an HSA during the calendar year is regulated by the IRS.  IRS limits depend on the type of plan an employee has (family vs individual) and the age of the employee (see the chart below for the current limits).  Eligible individuals who are over 55 are allowed by the IRS to contribute $1,000 more than the limits shown below for the respective calendar years.  The IRS limits below include all contributions made to an HSA account in any given calendar year.  An eligible individual with a family plan who is under 55 will only be able to contribute $6,550 to his/her HSA in 2024 because of the $2,000 employer contribution.  Together, the $6,550 from the eligible individual and the $2,000 from the town equal the $8,550 limit for the year per the IRS.  

HSA Annual Contribution Limits

To Make Changes to Your Contribution Amount

Outside of Open Enrollment, please contact Tricia Lamarre in Payroll tlamarre@wellesleyma.gov

Town of Wellesley Contribution

The Town of Wellesley will set up a Health Savings Account (HSA) for any benefit eligible individual who is enrolled in a High Deductible Health Plan (HDHP).  In addition to setting up the account, the Town will contribute $1,000 into an HSA for each benefit eligible individual selecting an individual HDHP and $2,000 into an HSA for each benefit eligible individual selecting a family HDHP. Town contributions to HSA accounts will be made by August 15th.  Employees are responsible  for ensuring their accounts do not exceed the IRS limit for the calendar year.

Medicare eligibility could have an impact on your ability to contribute and/or participate in an HSA.  IRS rules state that you cannot contribute to or receive contributions from your employer when enrolled in any part of Medicare and contributing to an HSA while on Medicare can have tax penalties.  It is your responsibility to contact the HR department at benefits@wellesleyma.gov if you are enrolled in Medicare and are on a high deductible health plan. For more information on how Medicare Eligibility can impact your HSA, please refer to the Medicare Eligibility and Your HSA guide.