HSA employer contribution confusion (federal employee)

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Topic Author
leviathan
Posts: 4
Joined: Tue Jul 09, 2019 3:03 pm

HSA employer contribution confusion (federal employee)

Post by leviathan » Thu Feb 13, 2020 11:15 am

Here's my situation.

In 2019, I signed up for Carefirst HDHP. The total employer contribution during 2019 was $1800.
($150 contribution on 1st day of the month from Feb to Dec. One extra $150 in July (I don't know why)).
Then, there was $150 contribution on Jan 2, 2020 (marked with "Employer Contribution (2020 tax year)").

For 2020, I signed up for GEHA HDHP. The expected employer contribution is $1800. I saw 1st $150 employer contribution to HSA account a few days ago.

I am not sure whether the total employer contribution for 2020 will be $1800 or $1950.

Is this common? Or did somebody make a mistake?

Let me know if you have any clue.

ChrisBenn
Posts: 56
Joined: Mon Aug 05, 2019 7:56 pm

Re: HSA employer contribution confusion (federal employee)

Post by ChrisBenn » Thu Feb 13, 2020 5:28 pm

I would assume you will get 1800 total (https://www.geha.com/plans/medical/2019 ... ealth-plan), but since the fehb changeover date is in february (might vary, aligns with pay periods), some of the contribution would be in the next tax year (as you saw with carefirst).

This does have interesting implications for contribution limits for plans with different passthroughs, or going from non hsa to hsa. Since your previous plans passthrough was the same I think you can count on 1800 total passthrough for 2020 (some of which came from your prev plan)

Note: this is all as i understand it, but no firsthand knowledge.

Topic Author
leviathan
Posts: 4
Joined: Tue Jul 09, 2019 3:03 pm

Re: HSA employer contribution confusion (federal employee)

Post by leviathan » Thu Feb 13, 2020 6:01 pm

Thanks for the reply.
I just don't want to exceed the overall contribution limit.
I will just wait until some time next year (maybe February) to sort out the total employer contribution for 2020.

Buford T Justice
Posts: 33
Joined: Mon Dec 15, 2014 5:33 pm

Re: HSA employer contribution confusion (federal employee)

Post by Buford T Justice » Thu Feb 13, 2020 6:25 pm

Just a observation / thought:

My official pay day was Thursday, January 2, 2020; I receive my pay by direct deposit on each preceding Monday each pay day week. Due to the New Years Holiday 1/1, NFC paid us on the normal Monday, December 30, 2019. This is a long way of say there was for me an extra "pay day" in 2019.

gclancer
Posts: 650
Joined: Sat Apr 27, 2013 10:34 am

Re: HSA employer contribution confusion (federal employee)

Post by gclancer » Thu Feb 13, 2020 6:52 pm

GEHA is confusing because they contribute in arrears. The $150 you received in February is for January 2020. In January 2021 you’ll receive $150 for December 2020 which will be reported as a 2020 contribution and count towards your 2020 contribution limit. 12 x $150 = $1,800 so the most you can contribute out of your paycheck during calendar year 2020 is $5,300 ($7,100 - $1,800).

Topic Author
leviathan
Posts: 4
Joined: Tue Jul 09, 2019 3:03 pm

Re: HSA employer contribution confusion (federal employee)

Post by leviathan » Thu Feb 13, 2020 10:34 pm

Then it seems that everything is normal with GEHA HSA.
So it looks like that employer contribution to my HSA for 2020 will be $1950 ($150 from Carefirst and $1800 from GEHA).

bene1
Posts: 109
Joined: Mon Jul 13, 2015 12:44 pm

Re: HSA employer contribution confusion (federal employee)

Post by bene1 » Fri Feb 14, 2020 8:22 am

gclancer wrote:
Thu Feb 13, 2020 6:52 pm
GEHA is confusing because they contribute in arrears. The $150 you received in February is for January 2020. In January 2021 you’ll receive $150 for December 2020 which will be reported as a 2020 contribution and count towards your 2020 contribution limit.
+1
OP, you can verify this by expanding the details of the contribution transaction in the online banking portal. There's a memo that shows what month and year the contribution is for.

Also, unlike many employers, the federal govt does not show employer contributions on your W-2. At tax time next year, check in with one of the annual threads about adding the employer contributions back in. Here's one from a few days ago.
viewtopic.php?f=2&t=303302

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