Health Savings Account

The HSA is a smart way to save and pay for your health care expenses now or in the future. Smart-Choice Accounts administers the HSA.

The HSA is a smart way to save and pay for your health care. Your dollars go into the account tax-free, grow tax-free and can be used tax-free.

Make your Health Savings Account work for you. Watch a short video about the (HSA)

Here’s a high-level overview of the HSA. For more information, review the Health Savings Account Plan Details.

 
Features
Eligibility You’re eligible for an HSA if you are enrolled in the BCSBIL or Kaiser BMO Consumer Choice Plan.

You are not eligible if you are covered by Medicare, or other health insurance that is not a high-deductible plan, including coverage under your spouse/domestic partner’s medical plan.

HSA Contributions
IRS Annual Contribution Limit Maximum amount that can be contributed to an HSA in 2024 (BMO plus employee contributions):  
  • Employee only: $4,150
  • Family: $8,300
  • Catch-up: $1,000 if you are age 55 or attain age 55 by the end of 2024
Employer Contributions
Employer Contributions
There are two types of employer contributions ― a Core Contribution and a Match Contribution. The contribution amount you receive from BMO is based on your total compensation (as of September 30 of the prior year).
  • Core Contribution: You are not required to make an HSA contribution to receive the Core Contribution. However, you must confirm you are eligible to have an HSA in 2024 and authorize BMO to open an HSA on your behalf with Smart-Choice Accounts, the HSA custodian, during enrollment.
  • 2024 Enhanced Core Contribution: If your total compensation is less than $130,999 (as of September 30, 2023), BMO will make a one-time $250 enhanced Core Contribution for employee-only coverage.
  • Match Contribution: If you contribute to an HSA, you will receive a dollar-for-dollar Match Contribution up to the maximum amount that you are eligible for based on your total compensation.
Total Compensation BMO HSA Employer Contributions (EE Only/Family)
Core Contribution Maximum Match Contribution Maximum BMO Contribution
$70,999 and under $750/$1,500* $250/$500 $1000/$2,000*
$71,000 – $130,999 $500/$1,000* $250/$500 $750/$1,500*
$131,000 – $175,999 $0 $250/$500 $250/$500
$176,000 – $285,999 $0 $0 $0
$286,000 and over $0 $0 $0
*Includes BMO’s one-time enhanced core contribution for 2024.

If you are enrolled in the Consumer Choice Plan and concurrently enrolled in Medicare or TRICARE, you are not eligible to contribute or receive contributions into an HSA. However, you may be eligible to receive a Core Contribution from BMO in the form of taxable cash in your paycheck. Learn how enrolling in Medicare will affect your HSA.

Employee Contributions You decide how much you want to contribute on a pre-tax basis, up to the IRS Annual Contribution Limit. Be sure to factor in BMO’s Core and Match Contributions, if applicable. 

If you are eligible for BMO’s Core and/or Match Contributions, the Benefits enrollment system automatically reduces the amount that you are allowed to contribute to account for BMO’s Contributions. If you are not eligible for BMO’s Employer Contributions, you will be able to contribute up to the full IRS annual limit.

HSA Features
Coordination with the Limited Purpose Flexible Spending Account When you enroll in the HSA you are also eligible to contribute to the Limited Purpose Flexible Spending Account (LPFSA). The LPFSA allows you to make additional before-tax contributions to pay for your eligible dental and vision expenses only.
Eligible Expenses
  • Most medical care and services (including the annual deductible coinsurance)
  • Dental care (non-cosmetic)
  • Vision care
  • Orthodontia
  • Prescription drugs
  • Over-the-counter medications with a doctor’s prescription
  • COBRA coverage
  • Qualified long term care expenses
  • Health insurance premiums for individuals receiving unemployment compensation
  • Medicare and retiree health insurance premiums
IRS Publication 502 has a complete list of eligible and ineligible expenses.
Unused Funds Carryover At the end of the plan year, your HSA balance carries forward.
Investment Options Once your balance reaches $1,000, you can make investment elections.
Age 65 Distributions At age 65, you can take penalty-free distributions from your HSA for any reason. However, in order to be both tax-free and penalty-free the distribution must be for a qualified health care expense. Withdrawals made for other purposes will be subject to ordinary income taxes.
Portability – When you Leave BMO The HSA balance is yours. If you leave BMO, switch to another medical plan or even retire, your HSA and the money in it is yours to keep.

Your HSA contributions

You can start contributing to the HSA or make changes to your election during the year.

  • Go to Workday, click My Benefits & Retirement application
  • Select your network status (on or off the BMO network)
  • Click Enroll in your Benefits coverage tile

Manage your HSA

You can view your account balance, reimburse yourself for eligible expenses and make investment elections throughout the year.

  • Go to Workday, click My Benefits & Retirement application
  • Select your network status (on or off the BMO network)
  • Click Reimbursement Accounts tile