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 High Deductible Health Plan (HDHP). 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 | ||
| Annual Contribution Limit |
The maximum HSA contribution amount in 2025 is as follows:
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| Employer Contribution |
All employees enrolled in the HDHP will be eligible to receive a core contribution:
You must confirm that you meet the eligibility requirement to contribute to an HSA Plan during enrollment. If you are not eligible for an HSA, you may still choose to enroll in the HDHP. If you are enrolled in the BMO medical 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 contribution, if applicable. If you are eligible for BMO’s core contribution, the benefits enrollment system will automatically adjust your contribution limit to account for BMO’s contribution. If you are not eligible for BMO’s employer contribution, you will be able to contribute up to the full IRS annual limit. |
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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, vision, and post-deductible medical 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 | 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