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.

In 2023, the IRS is increasing the annual HSA contribution limits: $3,850 (employee-only) or $7,750 (other coverage levels). Learn more in the 2023 Annual Enrollment Guide.



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.

    HSA Contributions
    IRS Annual Contribution Limit

    Maximum amount that can be contributed to an HSA in 2022 (BMO plus employee contributions):  

    • Employee only: $3,650
    • Family: $7,300
    • Catch-up: $1,000 if you are age 55 or attain age 55 by the end of 2022
    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).

    • 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 2021 and authorize BMO to open an HSA on your behalf at UMB during the enrollment process.
    • Match Contribution: You are required to contribute to an HSA to receive the Match Contribution. You will receive a dollar for dollar match up to the maximum amount that you are eligible for based on your base salary.
    Base salary tier structure BMO HSA Employer Contributions (EE Only/Family)
    Core Contribution Maximum Match Contribution Maximum BMO Contribution
    $70,000 or less $500/$1,000 $250/$500 $750/$1,500
    $70,001 – $130,000 $250/$500 $250/$500 $500/$1,000
    $130,001 – $175,000 $0 $250/$500 $250/$500
    $175,001 or more $0 $0 $0

    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 for the year.

      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 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