DRAS/PNC Health Savings Account
FAQ

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Who is eligible for an HSA?

Eligible individuals are those who:

• Are covered by a HDHP on the first day of the month
• Are not covered by any other health coverage
• Are not enrolled in Medicare
• Cannot be claimed as a dependent on someone else's tax return

Does income level affect whether an employee can have an HSA?

There are no income limits that affect HSA eligibility.

My company offers an FSA and HRA; can an employee have an FSA or HRA along with an HSA?

Yes. As long as your employee is an Eligible Individual, HSA contributions can be made while your employee is covered by:

• a limited-purpose FSA or HRA
• a post-deductible FSA or HRA
• a suspended HRA
• a retirement HRA

When can contributions to an HSA begin?

Contributions may begin on the first day of the month in which the Eligible Individual is enrolled in the HDHP.

As an employer, do I have to contribute the same amount to every employee's HSA?

If an employer elects to contribute to their Employee's HSA, they must make comparable contributions to all participating employees' HSAs, subject to any requirements by the HDHP.

These are similarly situated employees who:

• are enrolled in an HDHP and qualify for an HSA;
• have the same type of coverage, (e.g., self only or family coverage); and
• fall into the same employment category, (e.g., part-time, full time, or former employee)

Who owns the HSA?

The HSA is owned by the Eligible Individual, (e.g., the employee). The Eligible Individual may use tax-free distributions to pay for qualified medical expenses.

What are qualified medical expenses?

Qualified medical expenses are those that would generally qualify for the medical and dental deduction for federal income tax purposes. (See IRS Publication 502, Medical and Dental Expenses).

Can an employee have more than one HSA account?

Yes, an individual can have more than one HSA account. The total contributions to all of the HSAs cannot be more than the limits set by the IRS.

If an employee has an HSA with another institution can they transfer it to PNC?

Yes, the employee can transfer their existing HSA to PNC by completing a Transfer of Assets form.

When can contributions to an HSA begin?

Contributions may begin on the first day of the month in which the Eligible Individual is enrolled in the HDHP.

Are annual HSA contributions limited?

Yes. The Department of the Treasury establishes limits on the annual contributions to a HSA based on the type of HDHP coverage, (self-only or family). If a person is not considered an Eligible Individual during the entire tax year the contribution limit may vary.

Do HSA contributions have to be made in equal amounts each month?

No. An employer and/or an employee may contribute any amount into an HSA, up to the maximum annual contribution limit, during the tax year.

Who can contribute to an HSA?

Contributions to an HSA can be made by your company, the employee or both. All contributions are aggregated to determine whether the employee contributed the maximum allowed.

My employees want to contribute to their HSAs but want to make sure they get a tax benefit. How does that work?

Employee contributions can be made to HSAs on either an after-tax or pre-tax basis. If made on an after-tax basis, they should be counted as an abovethe- line deduction on their tax return. If they want to make the contribution pre-tax, it can be done through a Section 125 (also called a "salary reduction" or "cafeteria plan"). Employees should consult their tax advisor regarding the tax treatment of HSA contributions.

Mailing Address

PNC Bank HSA
Account Services
P.O. Box 9776
Providence, RI 02940-9776

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Direct Reimbursement
Administrative Services, Ltd.
P.O. Box 292455
Kettering, OH 45429