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2018 HSA: Your Money, Your Way

Like peas and carrots, a Health Savings Account (HSA) pairs well with medical Option A. If you’re enrolled in Option A, you can open an HSA and use it to pay for medical expenses—tax-free. Or, you can save your HSA money and use it later—still tax-free! Even after you retire.

Free Money—and Other Advantages

Still not sure an HSA is for you? Keep in mind that Dominion Energy contributes to your HSA each year you are enrolled in Option A. Free money…what’s not to like? Check out these advantages:

Triple Tax Advantages

One account, three ways to save money on taxes:

  1. Your contributions are deducted from your pay check tax-free—so you decrease the amount of taxes you pay. Use the HSA Bank tax savings calculator to estimate your tax savings.
  2. You can invest your HSA and you don’t pay taxes on any earnings.
  3. You can use tax-free money to pay for eligible medical expenses that you would ordinarily pay with taxable money.
  • Dominion Energy’s annual contribution to your HSA is up to $500 (individual coverage or employee plus domestic partner coverage) or up to $1,000 (employee plus spouse or family coverage), depending on the coverage category you choose and when you enroll.
  • Dominion Energy makes the entire annual contribution available in January. There's no wait for your money!
  • You can also contribute up to $2,950 per year (individual coverage or employee plus domestic partner coverage) or $5,900 per year (employee plus spouse or family coverage) in 2018.
  • No employee contribution is required. You will receive the Dominion Energy contribution even if you don’t contribute to your HSA during the year. However, if you decide to contribute you can change your contribution amount anytime throughout the year—just keep in mind you cannot adjust the amount to below what you have already contributed.
  • Your HSA contributions are deducted from your pay check before taxes. You can start, stop or change your contribution amount at any time.
  • You can use the money in your HSA to pay for eligible medical expenses now, or you can leave it in your account where it can grow to be used for medical expenses in the future.
  • You can invest your account balance—no minimum balance required and no monthly fee.
  • Money in your HSA is always yours—you take it with you, even if you leave Dominion Energy.
  • If you enroll in Option A mid-year, Dominion Energy’s contribution to your HSA will be prorated over the remaining months of the year.

How to Open Your HSA

When you enroll in Option A, Dominion Energy sends your relevant personal information to HSA Bank. During the opening process, HSA Bank may need to collect additional information from you. If you are unable to supply the proper forms of identification with 60 days of when your account is opened, all remaining funds will be returned to you and tax reporting will be conducted for the period of time the account was open. You will be responsible for any tax penalties. Once an account has closed due to a Customer Identification Program (CIP) failure, a paper application with two forms of ID is required to open a new account.

Dominion Energy Pays the Fees

Dominion Energy pays the monthly maintenance fee, as long as you are enrolled in Option A. If applicable, you'll pay any other fees, such as those related to withdrawing HSA funds from an ATM or by writing a check out of your HSA.

Using your debit card for ATM withdrawals or at a point of sale with your PIN results in a $2 fee per usage. You can avoid the $2 fee by selecting “credit” instead of “debit” when you swipe your card.

Money Stays in Your Account from Year to Year

Unlike a Healthcare Flexible Spending Account (FSA), there is no “use it or lose it” rule. Money in your HSA that you don’t use this year can be used in future years. You may also use future years’ contributions to cover this year’s expenses, so long as your HSA was established before you incurred the expense.

For example, if you have $1,200 in your account and incurred $1,500 in expenses this year after opening your HSA, you could use next year’s HSA contributions to reimburse yourself for the $300 this year’s account didn’t cover. Dominion Energy’s contribution will be sent to your open HSA by January 31.

You can also take the account into retirement to pay retiree health care costs.

Your HSA Money Is Always Yours

You may contribute to the HSA only while you’re enrolled in Option A, but you can use your balance to cover eligible health care expenses later, even if you are enrolled in another medical plan option or no longer a Dominion Energy employee.

You Can Make Catch-up Contributions

If you’re between the ages of 55 and 65, you’re eligible to contribute up to an additional $1,000 “catch-up” amount. To elect an HSA “catch-up” contribution, contact the Dominion Energy Benefit Center at 1-877-434-6996.

You Can Use up to Your Available Balance

Your HSA will accumulate funds as money is deposited by you and Dominion Energy each pay period. Just like a traditional interest-earning savings account, only the balance to date is actually available for you to use. You cannot withdraw more than the available balance. Learn more.

What Expenses Are Eligible?

Eligible expenses include medical expenses before you meet your deductible, medical copayments, or other eligible out-of-pocket health care costs for vision and dental care. You may use the money from your HSA for other reasons, but taxes and penalties may apply. You cannot use the HSA for domestic partner expenses unless your domestic partner qualifies as your dependent under IRS rules. For a list of eligible expenses, visit www.IRS.gov and view Publication 969.

Keep Your Receipts

You may need to provide proof to the IRS that expenses paid by your HSA are eligible. Save copies of receipts for expenses.

What Happens if You Have Other Medical Coverage?

If you have other medical coverage, such as Medicare Part A and/or Part B, a spouse’s employer plan, or a Healthcare FSA or Health Reimbursement Account through your spouse’s employer, you generally are not eligible for an HSA and cannot enroll in Option A. If you enroll in Option A and have other coverage, you could be subject to IRS penalties.

What Happens if You Have an Unused Healthcare FSA Balance?

If you have an unused balance in your Healthcare FSA on December 31, you must wait until the following April 1 to participate in the HSA. For example:

  • Between January 1 and March 15, 2018, you will be able to use your remaining 2017 Healthcare FSA balance to pay for eligible expenses.
  • In April 2018, if your HSA is active, Dominion Energy will deposit its contribution to your HSA.
  • You will be able to contribute your own tax-free contributions to your HSA beginning in April 2018.

If you switch to Option A for 2018 and you use your entire Healthcare FSA balance before January 1, 2018, you will not be subject to this delay.

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