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Purdue and Purdue Global Health Savings Accounts (HSA)

Employees who elect a Consumer-Driven Health Plan (CDHP) may be eligible to participate in an HSA — a bank account set up in the employee's name to which Purdue or Purdue Global contributes funds that may be used for eligible medical, prescription, over-the-counter, vision, and dental expenses incurred by the accountholder as well as their eligible dependents (e.g., spouse, IRS-qualifying child — one they can claim on their taxes) during their HSA coverage period.

HSAs offer a triple-tax benefit:

  1. You can contribute to them on a pre-tax basis (lowering your taxable income).
  2. Your balance grows tax-free interest over time as it is a true savings account.
  3. You can make tax-free withdrawals and distributions to cover qualified medical expenses.

These funds roll over from year to year with no limit and the account follows the accountholder, even if they leave Purdue employment. Once a certain balance is reached, funds may be invested. Access your HSA Bank account online or mobile app to manage your account(s).

Enrollment into a CDHP does not guarantee your eligibility for an HSA - there are additional IRS rules which may impact you. To get individualized guidance through these rules, please use our Interactive HSA Tool.

You may also refer to a quick HSA Eligibility Checklist.

  • Employees who are already 65 or who will turn 65 during the plan year should note that special rules apply to anyone who draws Social Security benefits and/or is covered by Medicare. Please take a few minutes to watch this video which walks you through your choices and what they mean for your Purdue health coverage and HSA, Thinking about Medicare?
  • Note: The information from the Interactive HSA Tool does not constitute tax or legal advice. If you have specific questions about the implications of an HSA for yourself, you are encouraged to seek professional tax or legal counsel.
  • If you are not eligible for an HSA, this does not impact your ability to enroll into a Purdue CDHP — only into an HSA. Purdue offers Health Reimbursement Arrangements (HRA) for those who are not eligible for an HSA for any reason.

Customer Identification Program (CIP)

Before you can access your HSA funds, HSA Bank is required to validate your identity through a Customer Identification Program, or CIP, process (all banks are required by federal regulation to do this when a person is attempting to open an account). 

Typically, your identity is verified with no issues. Occasionally, however, more information is needed to further verify your identity.

  • Most often this occurs when there has been a recent change in your name or address. In this case, HSA Bank will reach out up to three times to request two unique forms of identification which must come directly from you.
  • This documentation can be submitted to HSA by mail, fax, or by uploading to their secure website. The details of what is needed and where to send it will be found in the letters from HSA Bank if you fail the CIP process or you can call HSA Bank using the number on the left side of the page.
  • You will not be able to access your HSA funds until you have pass the CIP process. Additionally, if the requested documentation is not received by HSA Bank within 60 days, your account will be closed and any contributions made to it will be returned over time (based on the contribution date), less taxes. If this happens, you will need to take extra steps to reopen the account, must pass CIP, and any missed contributions from Purdue would only apply going forward, beginning with the date the account is reopened. Questions should be directed to HSA Bank at 1-800-357-6246.

Their first validation begins with a physical residential address; therefore, if you've only listed a P.O. Box address in our system, you will need to update your address before your account can be opened.

The Interactive HSA Tool can be used to help guide you through the Health Savings Account (HSA) eligibility rules. Access the tool here.

The contributions and limits shown below assume you are eligible for the HSA all year. If not, the amounts would be prorated. Changing plan tiers midyear (i.e., from family to individual) will also impact your contributions and limits.

Purdue University Base Contributions

Purdue will make contributions to your HSA based on your medical plan enrollment. This is done incrementally in conjunction with your pay schedule — monthly (for fiscal or academic year pay schedules) or bi-weekly, and academic-year staff do not receive contributions in the months of May through August when they don't receive full pays.

Note: For those enrolling in an HSA midyear, these contributions will be prorated based on your remaining number of pays in the year.

The following amounts will be reflected in the "HSA Savings ER" line under the "Purdue-Paid Benefits" section of each of your pay statements:

  • $200 for employee-only coverage
  • $400 for family coverage (employee + one or more)

Learn how you can earn additional HSA funds through our Healthy Boiler program.

Purdue Global Base Contributions

Purdue Global will make contributions to your HSA based on your medical plan enrollment. This is done incrementally in conjunction with your pay schedule.

Note: For those enrolling in an HSA midyear, these contributions will be prorated based on your remaining number of pays in the year.

  • $300 for employee-only coverage
  • $400 for employee + 1 coverage
  • $500 for family coverage (employee + 2 or more)

Optional Employee Contributions

You can elect to set aside dollars on a pre-tax basis through payroll deductions for your HSA as long as the total combined contributions from any source (e.g., your deductions, Purdue base, Healthy Boiler wellness program) do not exceed the IRS contribution limits below. You are encouraged, but not required to make your own contributions to an HSA and may change your payroll deductions at any time during the plan year without a Qualifying Life Event (changes may take 1-2 pay periods to reflect on your paycheck).

IRS Contribution Limits

You are responsible for assuring that total contributions to your HSA from all sources combined do not exceed the limits below. As a reminder, these assume you are eligible for the HSA all year. If not, the amounts would be prorated. Changing plan tiers midyear (i.e., from family to individual) will also impact your limits. Your age may also affect your limits. See Catch-Up Contributions in the next section.

Spouse tip: If your spouse also receives or makes contributions to an HSA through Purdue or another employer, you must collectively adhere to the contribution maximum family limit

  • 2024: $4,150 for employee-only coverage or $8,300 for family coverage (employee + one or more)
  • 2025: $4,300 for employee-only coverage or $8,550 for family coverage (employee + one or more)

Catch-up Contributions

Federal rules also allow what are called “catch-up” contributions to an HSA. If you are age 55 or older, or will turn 55 any time during the plan year, you may contribute an additional $1,000 above the IRS limits in the previous section. 

Spouse tip: Eligibility to make catch-up contributions is based on the accountholder's age — not on their spouse's age. If the accountholder and the spouse are both 55 or older, the accountholder may still only make a $1,000 catch-up contribution.

For detailed instructions on managing your account online (e.g., check your balance, reimburse yourself for eligible expenses paid out-of-pocket, pay a bill, link your bank account) access your HSA Bank account online or mobile app.
Interest and Investment Opportunities

Health Savings Accounts are interest-bearing accounts. With HSA Bank, you have the opportunity to potentially increase your funds by taking advantage of their investment options. For more information, please review HSA Bank Self-Directed Investment Options.

HSA Bank tax forms will be made available online at www.hsabank.com from the “View Statements” link on the Message Center tab and you will receive an email from HSA Bank when they are posted.

  • They will not be mailed out automatically unless you opt into receiving paper copies. To opt in, log into HSA Bank, scroll down to the “Quick Links” box, and click “Statement Preferences.” In the Statements section, place a checkmark under "Paper" in the HSA Tax Documents row. You may also call HSA Bank at 1-800-357-6246 to request a paper copy. Be sure to verify your address on file with Purdue is up to date first.

1099-SA

  • Posted by January 31
  • Reports funds distributions (You will not receive this form if you did not withdraw/spend funds from your HSA in the prior tax year)
  • Required to report on IRS form 8889 when filing tax return 

5498-SA

  • Posted in May
  • Reports contributions to your HSA made in the prior tax year along with your HSA balance as of the end of December in the prior tax year
  • Informational only and is not required to file with your tax return

HSA Bank Customer Service
1-800-357-6246

Email: askus@hsabank.com

HSA Bank website

HSA Bank mobile app

The following resources and forms are available to you:

You can also log into your HSA Bank account to update beneficiaries and learn more about your account details.

Please visit our dedicated HSA Frquently Asked Questions web page to review questions and answers. You can also contact the HSA Bank with your account questions.

HSA Bank Customer Service
1-800-357-6246

FSA & HRA Inquires
1-844-650-8936