Health Savings Account

Eligibility
You are eligible to participate if you’re enrolled in Caltech’s Anthem High Deductible PPO Plan, not enrolled in Medicare or other disqualifying health coverage, and not claimed as someone else’s tax dependent.

• Note: If you are considering retirement in the current tax year and are eligible for Medicare, carefully review your eligibility before enrolling in an HSA.

How It Works

• You set aside pre-tax money from your paycheck to help pay for current and future qualified healthcare expenses for you and your covered dependents, including:
  • Deductibles and coinsurance
  • Prescription medications
  • Dental care, including extractions and braces
  • Doctor’s and urgent care visits
  • Eye exams, glasses, and contacts
  • Some over-the-counter items, including pain relievers, allergy medication, cold/flu remedies, and first-aid supplies
• Funds roll over year to year and the funds remain yours forever, even if you change jobs or retire.
• You can invest in a select group of mutual funds once you have $1,000 in your account and any money you earn grows tax-free.

What to Know

• 2026 contribution limits:
  • Employee – $4,400
  • Family – $8,750
  • 55+ – $1,000 additional
• If you and your spouse work for Caltech, your combined HSA contributions cannot exceed the IRS annual family maximum.
• You can enroll and change your contributions at any time.
• After age 65, you can use your HSA funds for any purpose without a penalty. If the money isn’t used for healthcare expenses, you’ll simply pay regular income tax.

An HSA Offers Three Tax Advantages:

1. Contributions reduce your taxable income putting more money in your paycheck.
2. Withdrawals for qualified expenses are tax-free, helping you cover today’s costs with confidence and savings.
3. Growth in the account is tax-free, including investments, allowing your savings to grow for tomorrow’s needs.