Health Savings Account

Sometimes referred to as a 401(k) for healthcare, the HSA is built to last. You can spend HSA dollars on current eligible healthcare expenses, save them for expenses you rack up later (even in retirement) or do both. Here’s how your HSA helps you get ahead:

1. It’s triple tax-advantaged. You pay no federal taxes on contributions to your account, withdrawals for eligible expenses, or interest and investment earnings. Your contributions reduce your taxable income too.
2. Use HSA funds to cover eligible medical, dental and vision expenses for you and your tax dependents, even if they’re not covered by a Splunk medical plan.
3. Your HSA is yours to keep, even if you change health plans, leave Splunk or retire.
4. The money in your HSA continues to earn interest and grow, year over year, until you use it.
5. For more growth potential, you can invest your balance at any time! Just make sure you maintain a balance to pay ongoing claims.

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Great deals like an HSA always come with a few rules from the IRS, which sets annual HSA contribution limits. For 2024, the maximum is $4,150 if you have individual medical coverage and up to $8,300 with family coverage.

Splunk contributes, too, when you enroll in the HSA (even if you don’t contribute!): $750 for individual coverage and $1,500 for family coverage for the year. Splunk makes its contributions to your account on a calendar quarterly basis. The annual Splunk contribution amount is prorated by quarter based on when you enroll and when your HSA coverage begins. Your coverage must begin by January 1, April 1, July 1, or October 1 to be eligible for that quarter’s contribution.

You can change your contributions at any time in Workday. Elections take effect the 1st of the month following your election change in Workday.

Keep in mind that the IRS limits are the total of your and Splunk’s contributions. Exceeding these limits, like so many others, comes with consequences. You’ll pay regular income tax plus a 10% penalty on any excess contributions.

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With just a few exceptions, if you choose the UnitedHealthcare High Deductible Health Plan (UHC HDHP), you can reap the rewards of an HSA. You cannot contribute to an HSA if you’re:

• Enrolled in Medicare
• Contributing to the Health Care Flexible Spending Account (FSA) for medical expenses*
• Claimed as a dependent on someone’s tax return
• Covered by another group health plan which is deemed disqualifying coverage (non-HDHP health plan or a Health Care FSA through a spouse)

* But you can contribute to the Limited Purpose FSA for dental and vision expenses, and eligible health care expenses after you have met the HDHP deductible.

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It’s hard to put a price on peace of mind, but that’s one of the HSA’s biggest returns. Just knowing you have money to cover predictable (and unpredictable) healthcare costs is invaluable. That peace of mind is worth even more in retirement, when healthcare expenses are typically higher for most people.

Here’s a list of some things you can use your HSA money for, per the IRS:

• Doctor and hospital visits
• Prescription drugs
• Over-the-counter drugs and healthcare supplies
• Prescription eyewear and supplies
• Dental treatment
• Lab fees
• Feminine care products
• Medicare premiums

For a full list of eligible expenses, take a look at IRS Publication 502, Medical and Dental Expenses. 

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We’ll walk you through the process here (a lot of it happens behind the scenes). It starts with choosing the UHC HDHP and enrolling in the HSA in Workday. This is when you indicate how much you’ll contribute for the year. HSA enrollment is not automatic! You must enroll in the HSA in Workday.

Spoiler alert: Splunkers must pass ID verification per the U.S. Patriot Act. It’s not just us—this rule applies to employees everywhere. Fidelity will reach out to you requesting additional documentation if you don’t pass. If you don’t pass within 60 days, all payroll contributions are returned to you, any Splunk contributions are removed, and your account is closed.

Next, Splunk opens your account for you, and you begin contributing tax-free** with each paycheck throughout the tax year. Splunk makes its contributions to your account on a calendar quarterly basis. The annual Splunk contribution amount is prorated by quarter based on when you enroll and when your HSA coverage begins. Your coverage must begin by January 1, April 1, July 1 or October 1 to be eligible for that quarter’s contribution.

Then, Fidelity will send you a debit card. You can use it to pay for eligible medical, dental and vision expenses. Or you can pay out of pocket, save your receipts and submit them for reimbursement in your online Fidelity account, or by emailing, faxing or mailing a claim form and receipts. Note: If you also have a Limited Purpose Flexible Spending Account, you may want to use it first for dental and vision expenses.

** Tax-free in all states but California and New Jersey

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Please refer to the plan and policy documents for additional details on the plans, including exclusions, limitations and eligibility.