How it works
The HSA offered through Verizon is administered by Fidelity.
You can contribute pretax dollars to your account, withdraw contributions to pay for current qualified medical expenses, and potentially grow your account on a tax-free basis by investing your savings in a wide array of investment options.
Verizon also contributes to your HSA:
- In 2024: $500 if you have employee-only medical coverage or $1,000 if you cover dependents too
- In 2025: $600 if you have employee-only medical coverage or $1,200 if you cover dependents too
Your HSA belongs entirely to you and can be used to pay for your and your eligible dependents’ qualified medical expenses now or in the future, even in retirement.
What you need to know
- When you enroll in the HDP for the first time, you are automatically prompted to review and certify that you agree to the HSA terms and conditions. Once you certify, Fidelity will establish your HSA and send you a letter that explains other features of your HSA, including the debit card and your investment options.
- The HSA must be established and in good order before the end of the year in order to receive HSA contributions (during the year).
- You contribute to your HSA through pretax payroll contributions, up to annual limits set by the IRS. Your contributions—and Verizon’s annual contribution—are deposited into your HSA at Fidelity.
- You pay no federal taxes on your contributions, withdrawals or interest on investment earnings. If you live in California or New Jersey, your contributions and earnings are subject to state taxes.
- You can open and contribute to an HSA only if you meet the following IRS requirements:
- You must maintain enrollment in the Verizon HDP plan.
- You cannot be enrolled in Medicare or any other medical plan (including plans offered by your spouse’s employer) or in a health care flexible spending account (except a limited purpose flexible spending account).
- You cannot be claimed as a dependent on another person’s tax return.
Enrolled in the HCSA?
If you’re opening an HSA for 2025, be sure to deplete your HCSA balance by December 31, 2024. Otherwise, you won’t be eligible to contribute to your HSA or receive Verizon contributions until April 1, 2025, after the deadline for incurring 2024 HCSA expenses.
Contribution limits
The IRS sets annual limits on how much you and Verizon can contribute to your HSA.
2024 limits
| Full-year amounts | Employee-only coverage | Employee + dependents |
|---|---|---|
| 2024 IRS limit for all contributions | $4,150 | $8,300 |
| Verizon contribution | $500 | $1,000 |
| Your contribution limit | $3,650 | $7,300 |
| Additional allowable contribution for employees age 55 and older | $1,000 | $1,000 |
2025 limits
| Full-year amounts | Employee-only coverage | Employee + dependents |
|---|---|---|
| 2025 IRS limit for all contributions | $4,300 | $8,550 |
| Verizon contribution | $600 | $1,200 |
| Your contribution limit | $3,700 | $7,350 |
| Additional allowable contribution for employees age 55 and older | $1,000 | $1,000 |
Learn more about the HSA at Fidelity.
Contacts
Fidelity
An HSA is an individual account used in conjunction with an eligible high-deductible medical plan to cover eligible out-of-pocket medical expenses on a tax-advantaged basis.