HDHP and HSA Information – Calendar Year 2026

To contribute to an HSA, you must meet all of the following criteria:

• Be enrolled in an HSA-eligible HDHP
• Not be enrolled in Medicare
• Not be claimed as a dependent on someone else's tax return

You can only contribute for the months you were HSA-eligible. If you switch out of the HDHP mid-year, you must pro-rate your contribution limit unless you qualify under the "Last Month Rule." Consult IRS guidance or a tax advisor for specifics.

You can only contribute to an HSA for the months you are not enrolled in Medicare. Once your Medicare begins, contributions must stop. You can still use your existing HSA balance for eligible expenses.

You can no longer contribute to an HSA, but you may continue to use your balance for eligible medical expenses.

Yes. HSA contributions are completely separate from retirement plans like 403(b), 457, or CalSTRS. You can contribute the IRS maximum to all of them.

Yes. You can continue contributing to your HSA even if your spouse enrolls in Medicare, as long as you personally remain HSA-eligible.

HSA eligibility is determined individually, not as a household. Your spouse’s Medicare status does not affect your ability to contribute, provided you meet the following criteria:

To be HSA-eligible, you must meet the following criteria:

1. Be covered by a qualified high deductible health plan (HDHP)
2. Not be enrolled in any part of Medicare (for example, Part A, B, or D)
3. Have no disqualifying coverage (such as a general-purpose FSA or certain VA benefits)
4. Not be claimed as a dependent on someone else’s tax return

As long as you meet those requirements, you can contribute up to the IRS annual limit based on the type of coverage you carry (self-only or family), even if your spouse is no longer HSA-eligible.

Note: If your spouse enrolls in Medicare and you change to self-only HDHP coverage, your HSA contribution limit will shift to the lower self-only maximum.

Example:

Anna is 54 years old and covered under a family HDHP through her employer, which includes her husband Greg, age 65. When Greg turns 65, he enrolls in Medicare Part A and Part B.

• Anna does not enroll in Medicare and remains on the family HDHP.
• Greg is no longer eligible to contribute to an HSA due to Medicare enrollment.
• However, Anna remains eligible and may do both of the following:
  • Continue contributing to her HSA up to the 2025 family limit
  • Use the HSA to pay for qualified medical expenses for herself and Greg, even though Greg is on Medicare.

Yes. HSA contributions are flexible and can typically be adjusted at any point in the year, subject to payroll deadlines.

Submit your updated election through the Benefits Supersite before the payroll deadline. Changes can be made at any time during the year.

You must withdraw the excess contribution and any associated earnings before the tax filing deadline to avoid a penalty. Fidelity can assist with this process.

During the first year you open your HSA, if it is opened in a month other than January, you may make the full annual contribution for the first year only. However, you must remain HSA eligible through the next full calendar year following the year you start your HSA, or you could be charged penalties for the amount you over-contributed.

If using a Qualified HSA funding distribution from an IRA, you may only do this once per lifetime and you must remain eligible for the HSA for the next 12 months following the transfer. The IRA transfer is still subject to the IRS maximum contribution for an HSA.

There are several different ways you can contribute to an HSA:

• You may elect to have a pre-tax salary deduction withdrawn from your paycheck. Changes to HSA contributions made in one month are effective on the end-of-month paycheck of the following month.
• You may transfer a balance from another HSA to your current HSA.
• You, or anyone else, may make a direct deposit from a personal bank account.
• You may use funds from your Individual Retirement Account (IRA). This is classified as a Qualified HSA funding distribution (Traditional or Roth IRA may be utilized).

Fidelity provides a debit card you can use for eligible expenses. You may also pay out-of-pocket and submit for reimbursement via the Fidelity portal or app. Refer to Fidelity's How to Spend HSA for more information.

Yes. As long as the expense was incurred while your HSA was active and you kept the receipt, you can reimburse yourself at any time – even years later.

Yes. While Fidelity doesn't require them at the time of payment, the IRS may request them in an audit. Always keep records.

Yes. HSA funds can be used for qualified expenses for your spouse or tax dependents, even if they aren't enrolled in your HDHP.

Generally, no. However, you may use HSA funds for:

• COBRA continuation coverage
• Medicare premiums (excluding Medigap)
• Health insurance while receiving unemployment compensation
• Long-term care insurance (subject to IRS limits)

No. Dependent care is not a qualified medical expense. You may want to explore a Dependent Care FSA if available.

You can enroll in an accident, critical illness, or hospital indemnity plan through VOYA. For more information, please review the Employee Benefit Guide.

Health care reform legislation requires health plans of all types to cover adult children to age 26. However, this coverage does not extend to using your HSA funds for expenses incurred by the covered child. If your child is not a tax dependent, they cannot use your HSA funds, but can open their own HSA.

Unlike other health spending accounts (for example, flexible spending accounts), there is no "use-it-or-lose-it" rule with HSAs. The money remains in your account to earn interest and is available for use in subsequent years.

Eligible expenses include doctor visits, prescriptions, labs, dental and vision care, and more. For the complete list of IRS-allowable expenses, see IRS Publication 502.

Yes. The IRS allows HSA funds to be used for over-the-counter (OTC) medications and menstrual care products without a prescription.

You cannot have both a general-purpose FSA and an HSA. However, you may enroll in a limited-purpose FSA (for dental and vision only) if available.

Yes, you can enroll in the Los Rios HDHP. However, being double covered, especially if your spouse's plan is an HMO or PPO, may make you ineligible for an HSA under IRS rules.

Yes. If you are covered (even as secondary) under a non‑HDHP like an HMO or PPO, you are not allowed to open or contribute to an HSA, even if you are also enrolled in the Los Rios HDHP.

If both plans meet IRS HDHP rules and there is no disqualifying coverage, you may be eligible to contribute to an HSA. The household must share the family HSA contribution limit if either spouse has family HDHP coverage. You can be double-enrolled in HDHPs, provided neither spouse has disqualifying coverage, such as a general‑purpose FSA that can reimburse the other spouse's expenses.

Maybe not. If your spouse's general‑purpose FSA can reimburse your expenses, you are disqualified from contributing to an HSA. A limited‑purpose FSA (dental/vision only) generally does not disqualify you.

You can enroll, but this does not restore HSA eligibility if you are covered by your spouse's HMO, PPO, or a general‑purpose FSA. Contributing to an HSA while ineligible can trigger taxes and penalties.

You must withdraw the ineligible contributions and any earnings by the tax filing deadline. Otherwise, you may owe a 6% excise tax for each year the excess remains, plus income tax on any non‑qualified withdrawals. Reporting is done on IRS Form 8889 and, if needed, Form 5329.

If you waive all other coverage and enroll only in the Los Rios HDHP, and you meet other IRS requirements (not enrolled in Medicare, not claimed as a dependent, and no general‑purpose FSA that covers you), you would be eligible to open and contribute to an HSA.

These situations can be complex. Consult a qualified tax advisor for HSA eligibility and contribution limits. For official rules, see IRS Publication 969 and the instructions for IRS Form 8889.

Yes. Fidelity allows you to invest HSA funds once your cash balance exceeds a threshold. Investment earnings are tax-free if used for qualified medical expenses.

Fidelity offers a wide range of investment options, including mutual funds. You can select your investments once you’ve reached the minimum required balance.

No. HSA funds never expire. You can use them any time, even in retirement. They roll over year after year with no time limit.

If you are under age 65, you will owe income tax plus a 20% penalty. After age 65, non-qualified withdrawals are only subject to regular income tax (no penalty).

You keep your HSA. It remains yours even after you retire or leave Los Rios. You can still spend from it, but you must be HSA-eligible to continue contributing.