Health Savings Account (HSA)

Health Savings Account (HSA)

With the $1,850 or $2,850 Deductible Plans, you’re eligible to open and contribute money to a Health Savings Account (HSA) through Mercer Marketplace Accounts. The HSA is a tax-free savings account you can use to pay for eligible health expenses anytime, even in retirement.

HSA Features

Get company contributions.
– up to $500 for employee-only coverage
– up to $1,000 if you cover dependents
Pay for care tax-free.*
– Pay for eligible medical, dental, and vision expenses for you and your family using your debit card (provided sufficient funds are in your account).
– Track your spending, check your balance, reimburse yourself, and more at Pearson Benefits Marketplace. Click on “Your Savings and Spending Accounts” on the left navigation bar.
Put money in tax-free.
– Contribute to your HSA through before-tax payroll deductions (up to IRS annual limits). You only have access to money that has actually been deposited into your account
Carry unused money over.
– All the money in your HSA is yours to keep, year after year.
– You can build up savings to pay for future health care expenses. You can even invest your money once it reaches a minimum balance, which gives you the potential for tax-free earnings growth and a way to plan ahead for your medical costs in retirement.

Contribution Limits

The IRS sets annual limits on the total amount of money that can be contributed to your HSA. In 2019, the limits on contributions from both you and Pearson are:

  • $3,500 for employee-only coverage
  • $7,000 for family coverage

Note: Add $1,000 to these limits if you’re age 55 or older.

*Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65. Certain states (such as NJ and CA) do no offer tax-free contributions to an HSA and any capital gains, interest or dividends earned on the account must be declared. Please speak with a tax representative for more information.

Who’s eligible for an HSA?

In order to establish and contribute to an HSA, you:

  • Must be enrolled in the $1,850 or $2,850 Deductible Plan.
  • Cannot simultaneously participate in the Health Care FSA (but participation in a Combination FSA is allowed).
  • Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare.
  • Cannot be claimed as a dependent on someone else’s tax return.

You should review IRS rules for making HSA contributions if you will turn age 65 this year. For more information, visit the IRS website.