2026 Health Savings Account

If you elect to enroll in the Lion Advantage HSA plan, a Health Savings Account (HSA) automatically is opened on your behalf through HealthEquity. Funds to this account are contributed on a tax-free basis and can be used for eligible health expenses. Unlike the Health Care Flexible Spending Account (FSA), the funds rollover from year-to-year and are yours to use, even if you leave the University.

To help get you started, the University will make an initial contribution to your HSA in January with your first payroll cycle. For 2026, the University HSA contributions are as follows:

When making contributions to the HSA via payroll deductions, remember to factor the University contributions into the annual maximum contribution amount.

Additionally, it is important to note that if you are enrolled in the Lion Advantage HSA individual plan, and your spouse is enrolled in a separate HSA (whether it be individual or family plan with PSU or their own employer), the household HSA annual maximum contribution limit is $8,750.

Individuals who are aged 55 or older, and who are not enrolled in Medicare, can contribute an additional $1,000 in "catch-up" contributions to an HSA.

• Account holders may contribute to an HSA on a post-tax basis by contacting HealthEquity at 866-346-5800.
• Account holders must have money in their HSA before it is available for use.
• Once accumulating a certain balance, you are able to invest your funds, allowing account holders to gain tax-free interest savings over time.
• Account holders decide how much to contribute to their HSA, up to the annual IRS maximums, and may change their contributions anytime during the plan year.
• HSA funds may be used today as needed, or may be left in the account to grow future savings.
• The account holder may keep funds in the event that they switch health plans during the annual Open Enrollment period.
• An account holder who has left the University, or has retired, may keep their funds; their HSA will be changed to an individual account remaining with HealthEquity. Contact HealthEquity directly regarding this process.

Qualified medical expenses are those incurred by the following individuals:

• Employee and spouse
• Dependent children who are claimed on the account holder's tax return per IRS publication 502
  • up to age 19
  • up to age 24 if a full-time student (note that claims are only eligible through their 24th birthday)
  • beyond age 24 for a disabled dependent child
• Any person claimed as a dependent on the account holder's tax return except if:
  • the person filed a joint tax return
  • the person had a gross income of $3,900 or more
  • the account holder, or the account holder's spouse if filling jointly, could be claimed as a dependent on someone else's tax return

Call HealthEquity, or visit their IRS information, to learn more about tax dependent versus non-tax dependent claim eligibility under your HSA.

Any questions on an eligible spouse, eligible dependent child, or qualified expenses should be directed to HealthEquity at 866-346-5800.

A full list of HSA Qualified Medical Expenses is posted by HealthEquity. Also helpful, is an additional list from HealthEquity regarding Non-Qualifying Medical Expense List.