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A Health Savings Account (HSA) is a tax-advantaged savings account used in combination with a High Deductible Health Plan to pay for qualified health care expenses now, and later may be used to pay for health care expenses into retirement.
The HSA features a triple tax benefit!
- Your contributions into the HSA are made on a pre-tax basis
- Funds in the HSA can be invested, and the interest and earnings grow tax free
- The distributions you take to pay for eligible health care expenses are tax-free
Eligibility
To contribute to an HSA, you must meet the following conditions:
- You’re enrolled in a High Deductible Health Plan (HDHP), Operation Smile’s OAP HDHP
- You aren’t covered as a dependent under a spouse’s non-HDHP plan
- Your spouse doesn’t have a general-purpose health care FSA
- You aren’t enrolled in any part of Medicare*, Medicaid, or TRICARE
- You haven’t received VA medical benefits within the past three months (unless for a service-connected disability)
- You aren’t claimed as a dependent on another person’s tax return
* If you delay enrolling into Medicare, you can continue to contribute to an HSA, but you should stop contributing to your HSA 6 months before signing up for Medicare
Contributions
Employer Matching Contributions
Operation Smile will continue to provide an HSA annual contribution of up to $750 for employee only enrollment or a contribution of up to $1,000 for employees who elect to enroll 1 or more dependents. You must be an active employee to receive the employer contribution and Operation Smile’s contribution will be prorated per payroll cycle and based on your HSA enrollment date.
For example, Operation Smile has 24 pay periods, and the full year contribution of $750 or $1,000 is based on 24 pay periods. If an employee enrolls after January 1st OS’s contribution of $750 or $1,000 will be reduced and prorated by the number of pay periods left in the year.
(Note: Your HSA contribution match by Operation Smile will be reduced and prorated based on your enrollment date after January 1st.)
Annual Contribution Limits
Maximum contribution limits are set by the IRS. For 2026, the maximum annual contribution limit is $4,400 for Single coverage, or $8,750 (per household) for Family coverage. Operation Smile’s contribution counts towards the IRS’s maximum annual contribution limits. An annual catch-up contribution of $1,000 can be made by individuals age 55 and older. You can change your elected contribution monthly.
Note, state income taxes may apply to HSA contributions in some states.
Use your HSA
You’ll be issued a Health Spending Card by Lifetime Benefit Solutions to use to pay for qualified health care expenses, but you can also reimburse yourself at any time online or via Lifetime Benefit Solutions’ mobile app. There is no time limit to reimburse yourself, the funds just have to be contributed to the account first before you can use them. Any unused funds rollover year-to-year and all funds are always yours to keep, regardless of your employment status with Operation Smile.