Health Savings Account
The HSA is a smart way to save and pay for your health care. It’s administered by Your Spending Account (YSA).
An HSA is a tax-free account you can use to help pay for eligible health care expenses now and in the future if you’re enrolled in the Consumer Choice Plan. Plus, you get triple-tax advantages:
- Contributions you make to your HSA are pre-tax, which reduces your taxable income.
- Earnings on your HSA are tax-free.
- Withdrawals for eligible expenses are tax-free.
Here’s a high-level overview of the HSA. For more information, review the Health Savings Account Plan Details.
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Eligibility |
You’re eligible for an HSA if you are enrolled in the 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. |
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HSA Contributions | |||||||||||||||||||||||||
IRS Annual Contribution Limit |
Maximum amount that can be contributed to an HSA in 2022 (BMO plus employee contributions):
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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 base salary (as of September 30 of the prior year).
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. |
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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 for the year. |
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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 |
IRS Publication 502 has a complete list of eligible and ineligible expenses. |
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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 | Once you reach 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. So, 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
Here’s how 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
Here’s how 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 Access Your Spending Account (YSA) tile