What is a Health Savings Account (HSA)?
A Health Savings Account (HSA) allows you to pay for qualified dental, medical, and vision expenses as well as save for future qualified expenses on a tax-free basis. An HSA is similar to an Individual Retirement Account (IRA) established for the benefit of you, owned by you, and is portable. If you change employers, the HSA stays with you.
Any unused money in your HSA at the end of the year rolls to the next year. You may also choose to invest your HSA money. Any interest or dividends generated by investments are added to your HSA account tax-free.
Who is eligible for an HSA?
You are eligible for an HSA if you:
- Are covered under a high-deductible health plan (HDHP).
- Have no other medical coverage. You cannot be covered by a family member’s non-HDHP or a medical FSA/HRA.
- Are not enrolled in Medicare.
- Cannot be claimed as a dependent on someone else’s tax return.
- Have a valid Social Security number.
How is an FSA different from an HSA?
Both accounts will enable you to pay for qualified medical expenses with pre-tax dollars. The main difference between the two accounts is that the HSA will rollover from year to year. The HSA rollover allows you to be reimbursed for expenses that were incurred on or after the HSA start date. You can use the funds in your HSA for expenses that incurred as far back as the original date your HSA was opened.
The Healthcare and Healthcare Limited FSAs are limited to a plan year and will only rollover up to $550. HSAs will reimburse to the available balance you have accrued through contributions, whereas the FSA is fully available at the beginning of the plan year.
HSA enrollment restricts you from participating in Healthcare FSA . You may, however, participate in a Healthcare Limited FSA and Dependent Care FSA with your HSA. The Healthcare Limited FSA is restricted to dental, vision, and post-deductible medical expenses. To be reimbursed for post-deductible medical expenses, third-party documentation with the proof of the deductible being met and the date it was met will need to be submitted to Nyhart.
If you are using your Benefit Card, dental and vision expenses will be taken from your Healthcare Limited FSA first. The card will classify any medical expenses as HSA. For example, if you use your card at EyeGlass World, the expense will be withdrawn from your Healthcare Limited FSA first provided there are enough funds available.
Benefit Card transactions can be modified if they are classified to the wrong account. If you would like one corrected, please send us an email with the transaction date, amount, and which account it should be applied to. For transactions that are moving from your HSA to your Healthcare Limited FSA, please also submit substantiation.
What are the ways that I can access my account?
To access your account, we have two user-friendly options; Nyhart Benefits Mobile App and our website.
The Nyhart Benefits Mobile App can be used on smartphones and tablets. Instructions for accessing the Nyhart Benefits Mobile App are available under Forms & Resources at iu.nyhart.com. You will use the following login credentials for the Nyhart Benefits Mobile App:
Username: 10-Digit Employee ID Number
Password: 10-Digit Employee ID number plus the last four numbers of your Social Security number
Example: 00012345671234
Please note that this is a different login than you would use to log in to our website.
The Nyhart Benefits Mobile App will allow you to: view your balances, view account activity, view notification history, file claims, and submit receipts for outstanding debit card transactions.
If you are logging in for the first time or have not previously changed your login credentials, you may log in to our website at iu.nyhart.com by using the following login credentials:
Username: 10-Digit Employee ID number
Password: Last four numbers of your Social Security number
Your account is automatically created when you are enrolled. You will not need to register your account on our website. You may change your username or password after initial login. If you forget your username or password you may select “Forgot username?” or “Forgot password?”
Can my spouse and I have other types of health plans in combination with my HSA?
You or your spouse may have a Healthcare Limited FSA in combination with your HSA. A Healthcare Limited FSA is limited to dental, vision and post-deductible medical expenses only.
Can I have a joint HSA with my spouse?
No. HSAs are individual accounts that are opened in one person’s name. While your HSA will cover expenses for the family, the account itself remains in your name.
If each spouse has self-only HDHP coverage (neither spouse has family coverage), how much can we contribute?
With self-only high-deductible health plan (HDHP) coverage, each spouse can contribute up to the yearly maximum contribution for individual coverage.
If either spouse carries family HDHP coverage, both spouses are treated as having family coverage. The HSA maximum for family coverage will need to be split between both spouses upon agreement. This agreement could be that the spouse with family HSA coverage contributes the maximum while the other spouse waives his/her HSA for the year. The combination of contributions to the two HSA accounts cannot exceed the yearly maximum contribution for family coverage.
How will I receive monthly HSA statements?
Monthly HSA statements are available through our website, iu.nyhart.com. We recommend that you review them periodically. You may also sign up for paper statements to be mailed to your home for $1.50/month.
How do I start an HSA?
You may enroll in an HSA during your new hire enrollment period, IU’s Open Enrollment, or anytime throughout the year. Contact your HR department for additional information.
Can I have more than one HSA?
Yes, but your contributions may not exceed the maximum contribution amount between all your HSAs.
How do I check my HSA balance?
You may check your HSA balance at any time by logging in to iu.nyhart.com. After you log in, click Your Balances on the left side. Your HSA balance will be listed in the left column with your HSA investment balance listed below it.
The amount listed in your HSA balance is the amount available on your debit card. Any amount shown in your investment balance is accessible to you by creating a distribution through our website.
Where can I find a report with all my account activity?
Your account activity is available in real-time by accessing our website at iu.nyhart.com. After you log in, you will click Your Balances on the left side, and then click Accounts in the top menu bar. Next, click Account Activity to view all contributions and distributions processed on your HSA.
You may export your account activity to an Excel spreadsheet by clicking the Export button.
Do I need to submit documentation to use my HSA?
No. You do not need to submit documentation to create distributions or use your debit card on your HSA. We recommend that you keep HSA documentation in a folder near your tax documents. Documentation may be requested if you would like a debit card transaction to be moved from your HSA to a Healthcare Limited FSA.
Where can I find my HSA tax documents?
Your HSA tax documents are available on our website at iu.nyhart.com. Once logged in, click on Your Balances, and then hover on Accounts in the top menu bar. You will then select Statements on the left hand side. The 1099-SA Distribution Statement will be available by the end of January and the 5498-SA Contribution Statement will be available by mid-February.
What happens to my HSA if I terminate or resign?
If your employment ends with Indiana University, your HSA will remain active and will convert to a Nyhart Individual HSA. We will send you notification via the mail that explains the changes that will occur to your account and the move date.
As of the move date, your current debit card will stop working. You will also experience a blackout period of 2 to 4 business days where you will not be able to create contributions or distributions on your HSA.
New cards will be issued and will arrive within 10 to 14 business days of your HSA conversion. All features that you are accustomed to are offered on our Nyhart Individual HSAs. A monthly administration fee will be applied directly to your account. (Previously, this was paid by your employer.)
What happens to my HSA after my death?
If you have a beneficiary on your HSA, your beneficiary will be able to submit an HSA Death Distribution Form and request the HSA be sent to the estate, or converted to an HSA in the surviving spouse’s name. If no beneficiary is listed on your HSA, the state of Indiana requires the HSA distribution to be made to the estate of the deceased. Extra documentation may be requested to process a death distribution to an estate.
How do I add a beneficiary?
You may add or update your beneficiaries at any time through our website, iu.nyhart.com. Once logged in, click on Your Balances, and then click on Profile in the top menu bar. Click on Add Beneficiary on the right side. Please note that adding a beneficiary does require the beneficiary’s Social Security number.
Can an Estate or Living Trust be a beneficiary?
Yes. Both can be listed as a beneficiary. The tax ID number included on their legal documentation will need to be entered into our website. If you need assistance, please let us know via email at support@nyhart.com, or by phone at 800-284-8412.
What are the fees associated with my HSA?
IU will pay your monthly administration fee.
The following fees are applicable:
HSA Check Distribution Fee: $10.00/each; if issued to a provider the fee is waived
Return Fee: $15.00/each
Stop Check Fee: $20.00/each
HSA Account Summary Fee: $1.50/month
Additional or Replacement Debit Card Fee: $10.00/set of two (2) Debit Cards
Quarterly Custodial Management Fee: 25 Basis Points/annum investment in mutual funds
Monthly Account Maintenance Fee for Terminated Participant: $2.75/month
How do I close my HSA?
If you are no longer enrolled in the HSA through IU, you may close your HSA at any time by submitting an HSA Distribution Form to transfer or rollover your HSA balance.
If you do not have a balance in your HSA, you may send an email request to support@nyhart.com. Please include your name and your 10-digit employee ID number to verify that you would like your account with Nyhart closed.
What is an HSA contribution?
An HSA contribution is a deposit made into your HSA.
What is the HSA maximum contribution limit?
Each year, the IRS sets maximum contribution limits for HSAs.
For 2022, the maximum contribution limits are:
Individual: $3,650
Family: $7,300
For 2023, the maximum contribution limits are:
Individual: $3,850
Family: $7,750
Who can contribute to my HSA?
A contribution can be made by you, your employer, family members, or anyone who would like to contribute to your HSA.
What is the allowable catch-up contribution?
The allowable catch-up contribution for participants over 55 is $1,000. This amount adds to the coverage maximum limits.
For 2022, the maximum contribution limits with catch-up are:
Individual: $4,650
Family: $8,300
For 2023, the maximum contribution limits with catch-up are:
Individual: $4,850
Family: $8,750
How can I contribute to my HSA?
After enrolling in the HSA your contributions are made through payroll deductions with your employer. You may contribute directly from a personal bank account into your HSA via our website, iu.nyhart.com.
You may also contribute by sending a check payable to Nyhart by mail at:
Nyhart
c/o HSA
P.O. Box 56024
Boston, MA 02205
Can HSA contributions be changed during the year?
Your payroll contributions may be changed. To change your contribution amount, contact your HR department.
When is the last day of the year to contribute to my HSA?
You will have until tax day of the following year to contribute up to the maximum into your HSA.
Can I transfer or rollover HSA money from my current HSA custodian to Nyhart?
You may transfer or rollover HSA money from an HSA custodian to Nyhart by completing the HSA Transfer Form and submitting the form to your current HSA custodian.
A transfer or rollover must be made to the same owner of the HSA; i.e. John Doe’s HSA at Chase to John Doe’s HSA at Nyhart. A spouse is not allowed to transfer or rollover into their spouse’s HSA.
What is the difference between a transfer and a rollover?
Please note that transfers are unlimited from custodian to custodian. Rollovers may occur once per 12 months.
May I transfer or rollover funds from my current HSA to my spouse’s Nyhart HSA?
Per IRS guidelines, HSAs are individual accounts that cannot be combined between spouses. Accounts stay in the name of the individual that originally opened the account. For example, if Joan opened an HSA with CHASE but later wanted to transfer it to her husband Bill’s Nyhart HSA, she would not be able to roll her funds into Bill’s account. Joan’s HSA is in her name, and Bill’s HSA is in his name. They may not be combined to consolidate accounts between spouses.
What happens when I exceed my HSA contribution maximum?
If a contribution is made over the HSA maximum for the year, Nyhart will send a notification to the HSA account holder. It is the account holder’s responsibility to decide whether to create an excess distribution or pay the tax penalty on the excess contribution by tax day of the next year.
How do I request an Excess Distribution?
You may request an excess distribution by completing the HSA Distribution Form and submitting it to us via email at support@nyhart.com, fax 888-887-9961, or by mail at:
Nyhart
c/o HSA
P.O. Box 56024
Boston, MA 02205
What is a Mistaken Distribution?
A mistaken distribution is a refund processed back to your HSA. You may pay your HSA back any refunds that you have received directly from your personal bank account and then send an email to support@nyhart.com with your name, your 10-digit employee ID number, and the refund contribution you have submitted. We will manually adjust the transaction from a normal contribution to a mistaken distribution. (Without this adjustment, it could place your contributions over your HSA maximum contribution for the year.)
You may also complete the HSA Contribution Form and send a check payable to Nyhart by mail to:
Nyhart
c/o HSA
P.O. Box 56024
Boston, MA 02205
All mistaken distributions must be processed by tax day of the next year.
How do I setup my investments?
After you have reached a balance of $1,000 in your HSA, you may enable your HSA Investments. You will need to log in at our website, iu.nyhart.com.
- Click on Your Balances.
- Click on Manage Investments.
- Click on Investment Account Setup.
- Select Yes to enable auto-investment transfers.
- Specify a value at or above $1,000 to automatically transfer to your investments account.
- Click Save/Next.
- Select your investment options.
What is my investment threshold?
Your investment threshold is the amount that you specify in Setup Investment Transfers; a minimum of $1,000. The threshold determines the amount that is pushed to your investments. With auto-investment transfers on, it will automatically send money over the threshold in $100 increments over to the investments. If the HSA account falls below the threshold, it will also automatically pull money out of investments back to the HSA account.
Transfers can be turned off at any time by re-entering the Investment Account Setup screen and selecting “No” to auto-investment transfers.
How are Auto-Investment Transfers handled?
Transfers into the investment accounts are handled by the investment values that you have assigned in Manage Investments. Reverse transfers are pulled pro-rata from all investments.
How do I transfer or realign my investments?
You may transfer or realign your investments by changing your investments in Manage Investments. After you have changed the percentages, it will give you the option to realign.
How is the transfer handled in reverse? Does it apply the same percentages that were setup for the transfer into the investment accounts?
Transfers will also work in reverse. If the general HSA falls below the threshold, money will be transferred out of the investment area into the general HSA. The minimum threshold allowed is $1,000. Transfers can be turned off at any time by selecting “no” to auto-investment transfers.
The reverse transfer is handled pro-rata. This means that based off where your money is currently invested, it pulls the money out of the accounts by formula. For instance, if you are invested in two accounts at $500, it would pull equal amounts from the accounts. However, if you had $750 in one and $200 in another, it would pull more out of the $750 investment than the $200 investment. It is not directly tied to the percentages that were initially used for investment.
What are basis points (bps)?
Basis points are administrative fees applied to mutual funds. 25 basis points is equal to .25% for the year.
How long does it take for my investment trades to process?
It takes 2 business days for a trade to process. Trades created after 2:30 pm EST are started on the next business day.
What is an HSA distribution?
An HSA distribution is a withdrawal from your HSA.
How do I create a distribution?
You may create a distribution by using your debit card, our website, iu.nyhart.com or on the Nyhart IU HSA/FSA Mobile App. A distribution created online can pull from both your HSA account and your investment account.
How long does a distribution take to process?
A distribution can take up to 3 business days to process.
Distributions are processed on business days. Direct Deposits are available in your personal account within 72 hours of processing. Checks may take up to 5 business days to arrive.
How many distributions can I make?
You can create and receive as many distributions as you have funds available for. Nyhart does not limit the number of distributions that you can make. Distributions are generated in real time on our website, iu.nyhart.com. You can make an unlimited number of distributions as long as you have enough funds in your account.
When will I receive distributions?
Distributions are processed on business days. Direct Deposits are available in your personal account within 72 hours of processing. Checks may take up to 5 business days to arrive.
Can I create a distribution for expenses incurred in a previous year?
Yes, you may create distributions for qualified expenses incurred in previous years that your HSA was active. You cannot request distributions for expenses prior to your HSA’s effective date.
How are distributions from an HSA taxed?
Distributions are taxed differently based on how they are used. Distributions from an HSA used exclusively to pay for the qualified medical expenses of you, your spouse, or eligible dependents generally are excludable from gross income. The amount of any distribution not used exclusively for qualified medical expenses will be includable in your gross income and may be subject to an additional premature distribution penalty tax. This penalty tax does not apply to distributions made after your death, disability, or attainment of age 65. In addition, distributions made for expenses that are reimbursed by another health plan are includable in your gross income, whether or not the other health plan is a high-deductible health plan (HDHP).
Who determines whether my expenses are IRS-qualified medical expenses?
We provide an Expense Eligibility Table to help determine eligibility. We are also available to assist with eligibility questions via email at support@nyhart.com or by phone at 800-284-8412.
What happens if I use my HSA for unqualified medical expenses?
You may repay your HSA by making a mistaken distribution or you may pay a tax penalty when you file your taxes for the year on the prohibited distribution.
What is needed for a Death Distribution?
If a beneficiary is on the HSA, we will need the HSA Death Distribution Form to be completed and returned to us with a copy of the death certificate.
If a beneficiary was not listed on the account, we will need a completed HSA Death Distribution Form, a copy of the death certificate, and one of the following:
- Letters Testamentary for Estate
- Small Estate Affidavit
- Affidavit of No Administration
If a death distribution does not have the necessary paperwork, we will reach out to the submitter via letter or phone to request additional documentation.
I’m a single parent with a high-deductible health plan (HDHP) coverage but have a child/relative that can be claimed as a dependent for tax purposes, and this dependent also has non-HDHP coverage. Am I still eligible for an HSA?
Yes, you are still eligible for an HSA. Your dependent’s non-HDHP coverage does not affect your eligibility, even if they are covered by your HDHP. You can contribute up to the statutory limit.
What happens if I elect FSA at open enrollment and my spouse elects a family HSA during his/her open enrollment?
Your FSA election would disqualify your spouse to be eligible for an HSA. Any HSA contributions made during your coverage period in the FSA would need to be removed from your spouse’s HSA before he/she files income taxes. As long as the ineligible funds are removed from the HSA prior to filing taxes, there will be no penalty.
An excess distribution will need to be requested from the HSA custodian. Nyhart requires the HSA Distribution Form to be completed and returned to create an excess distribution. Excess distributions cannot be created through the website iu.nyhart.com.
How do I know what the available balance on my Benefit Card is?
The balance on your Benefit Card is directly tied to the cash balance you have in your HSA. Your threshold setting determines the amount that is available in your cash account. For example, if you had $4,000 in your HSA with your threshold set to $2,500, then you would have $2,500 in your cash account and the remaining $1,500 would be in your investments.
Is there a limit on how many distributions I can make?
Fortunately, Nyhart does not limit the amount of distributions that you can make. Distributions are generated in real time on our website, iu.nyhart.com. You are able to make an unlimited amount of distributions as long as you have enough funds in your account.
May distributions from an HSA be deferred to later taxable years?
Distributions from your HSA to pay or reimburse qualified medical expenses incurred in the current year may be deferred to later taxable years, as long as those expenses were incurred after your HSA was established. HSA distributions in the current year can be used to pay or reimburse qualified medical expenses incurred in prior years, as long as those expenses were incurred after your HSA was established. We recommend you keep all receipts for this purpose.
Who determines whether HSA distributions are for qualified medical expenses?
It is your responsibility to determine whether distributions from your HSA are used for qualified medical expenses. We suggest that you keep all of your medical receipts for tax purposes.
We provide an Expense Eligibility Table to help determine eligibility. We are also available to assist with eligibility questions via email at support@nyhart.com or by phone at 800-284-8412.
What happens to HSA funds after you reach 65?
At age 65 and older, your funds continue to be available without federal taxes or state tax (for most states) for qualified medical expenses; for instance, you may use your HSA to pay certain insurance premiums, such as Medicare Parts A and B, Medicare HMO, or your share of retiree medical coverage offered by a former employer. Funds cannot be used tax-free to purchase Medigap or Medicare supplemental policies.
If you use your funds for qualified medical expenses, the distributions from your account remain tax-free. If you use the monies for non-qualified expenses, the distribution becomes taxable, but exempt from the 20 percent penalty. With enrollment in Medicare, you are no longer eligible to contribute to your HSA. If you reach age 65 or become disabled, you may still contribute to your HSA if you have not enrolled in Medicare.
Why am I being asked to sign new HSA terms and conditions?
Nyhart is your Health Savings Account (HSA) administrator. HealthcareBank was Nyhart’s partnered custodian on the HSA. On April 1, 2021 HealthcareBank assigned custody of the HSA for which it served as custodian to WEX, a global, public technology company that is an IRS-approved custodian of HSAs, and Nyhart’s software partner. Nyhart, WEX and HealthcareBank have been close partners for over 10 years. You will need to view and agree to the new Custodial Agreement and Disclosure Statement through the portal or mobile app once you login. Nothing changes with respect to the consumer experience associated with the impacted HSAs.
Your HSA will continue to be serviced by Nyhart, and you can access it using the same web portal and mobile app. Your investment options, interest rates will remain the same, and all deposits currently eligible for FDIC insurance will continue to be eligible. For more information please see the New HSA Custodian FAQ document in the Educational Resources area of this page.