2025 Health Savings Account
If you elect to enroll in the Lion Advantage HSA plan, a Health Savings Account (HSA) is opened automatically on your behalf through HealthEquity. Funds to this account are contributed on a tax-free basis and can be used for eligible health expenses. Unlike the Health Care Flexible Spending Account (FSA), the funds rollover from year-to-year and are yours to use, even if you leave the University.
To help get you started, Penn State contributes funds into your account in annually after your first January payroll has processed. For 2025, the Penn State contributions are as follows:
Health Savings Account Penn State Contribution
| Salary Range | Individual Coverage | Family Coverage |
|---|---|---|
| $45,000 or less | $800 | $1,600 |
| $45,001 - $60,000 | $600 | $1,200 |
| $60,001 - $90,000 | $400 | $800 |
| More than $90,000 | $200 | $400 |
2025 IRS Contribution Maximums
| Coverage | Maximum Contribution |
|---|---|
| Individual | $4,300 |
| Family | $8,550 |
When making contributions to the HSA via payroll deductions, remember to factor the Penn State contribution into the annual maximum contribution amount.
Individuals who will be age 55 or older, and who are not enrolled in Medicare, can contribute an additional $1,000 in "catch-up" contributions to an HSA.
HSA Eligible Dependents and Eligible Expenses
Qualified medical expenses are those incurred by the following individuals:
- Employee and spouse
- Dependent children who are claimed on the account holder's tax return per IRS publication 502
- up to age 19
- up to age 24 if a full-time student (note that claims are only eligible through their 24th birthday)
- beyond age 24 for a disabled dependent child
- Any person claimed as a dependent on the account holder's tax return except if:
- the person filed a joint tax return
- the person had a gross income of $3,900 or more
- the account holder, or the account holder's spouse if filling jointly, could be claimed as a dependent on someone else's tax return
Call HealthEquity, or visit their IRS information, to learn more about tax dependent versus non-tax dependent claim eligibility under your HSA.
Any questions on an eligible spouse, eligible dependent child, or qualified expenses should be directed to HealthEquity at 866-346-5800.
A full list of HSA Qualified Medical Expenses is posted by HealthEquity. Also helpful, is an additional list from HealthEquity regarding Non-Qualifying Medical Expense List.