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What if I contribute more to the HSA than the tax rules allow in my circumstances?

The maximum amount you may contribute for a year depends on your unique circumstances. You are required to monitor your own contributions to make sure you do not contribute more than this maximum amount. If you do make contributions in excess of the limit, you can request a return of excess contributions up until the April tax-filing deadline. Contact the Hess Benefits Center at Fidelity for details. Any excess amounts not returned to you prior to the tax deadline are subject to both income and excise taxes.

If I elect the Hess Medical Plan, does the company monitor whether I am eligible for the HSA and my contribution amount?

No, although your payroll deductions will automatically stop when you reach the maximum allowed for your circumstances. Otherwise, you alone are responsible for monitoring your eligibility for the HSA, the maximum amount of contributions that you can contribute and whether the expenses that you submit are eligible for reimbursement. Neither the company nor the HSA administrator makes these decisions. If your federal income tax return is audited by the IRS, you may be required to prove your eligibility for the HSA, as well as the level of contributions made and distributions received. Therefore, it is very important that you educate yourself on these issues and retain appropriate documentation.

Helpful information is available on the IRS website (irs.gov), including Publication 969, which covers HSAs. You also may want to consult with a tax professional.

Is there a minimum amount I must contribute to my HSA each year?

No, there is no minimum. There is only an IRS maximum each year.

If I enroll in the Hess Medical Plan, must I contribute to an HSA or make before-tax payroll deductions?

No. You are not required to contribute to your HSA, and you do not have to contribute in order to receive the company contribution.

How often can I contribute? Is there a limit as to how much I deposit with each contribution?

If you are an active employee making before-tax payroll deductions, you contribute each pay period. If you are a retiree or want to make after-tax contributions, you can contribute as often as you want, as long as total contributions don’t exceed the IRS maximum. HSA contributions are tax-deductible up to the IRS maximums for single or family coverage. You are responsible for ensuring that your contributions do not exceed these maximums.

What do I need to do to open an HSA?

After you enroll in the Hess Medical Plan, you must complete the process of opening an account. Visit the Hess Benefits Center at Fidelity, click Open an HSA and follow the instructions. If the HSA administrator needs more information, they will contact you directly. If you choose not to have an HSA, please call the Hess Benefits Center at Empyrean as soon as possible to close the account.

Is there a cost to establish an HSA at Hess?

If you are an active employee or retiree, there is no charge to set up an account at Hess, and the company pays the monthly administrative fee. If you are no longer enrolled in the Hess Medical Plan, this fee will be automatically deducted from your account each month. Other banking fees may also apply.

What if I already have an HSA?

It’s possible to connect, roll over or transfer funds in an existing HSA from a different employer to your Hess HSA. Contact Fidelity for forms and information. Rollovers and transfers are subject to IRS restrictions. Please contact your tax advisor for information.

Do I have to submit supporting documents to the HSA administrator when I submit expenses?

No. You do not have to provide supporting documentation to the HSA administrator. Just keep your documentation of eligible expenses so you have it in case you are audited by the IRS.

What records will I need to keep about my HSA?

You are responsible for keeping records to prove eligibility for your contributions and withdrawals for eligible medical expenses. If your tax return is audited, you might be asked to provide documentation to show that you used your HSA to pay for eligible medical expenses. You should receive tax forms showing total annual contributions as well as total withdrawals from your HSA:

Form 1099-SA notifies the IRS of withdrawals made from your HSA during the tax year.
Form 5498-SA notifies the IRS of contributions made to your HSA during the tax year.