It comes only with Plan 2, and it's the rare benefit that doubles as a long-term, tax-free savings tool. Here's exactly what it is, how the triple tax advantage works, and who gets the most out of it.
Think of it as a special savings account just for health costs. You can only open one if you're on an HSA-eligible plan like Plan 2. You decide how much to put in (up to the IRS limit), and that money goes in before taxes — so you lower your taxable income just by saving. Use it for doctor visits, prescriptions, dental, glasses, and more. Whatever you don't spend stays in the account, earns interest, can be invested, and is yours to keep — forever. It's the rare benefit that doubles as a long-term wealth-building tool. One thing to know up front: the HSA is funded by your own contributions (the company doesn't add to it) — but the tax break and everything it earns are yours to keep. If you elect Plan 2, you'll get the HSA setup details after you enroll.
No other account in the U.S. gets all three of these at once. It's why financial planners love the HSA even more than a 401(k).
Money you put in lowers your taxable income — so you're taxed on less of your paycheck.
Interest and investment gains build up completely tax-free, year after year.
Spend it on qualified medical costs and you pay no tax on the way out, either.
Unlike an FSA, the balance rolls over every year and never expires. It follows you if you leave the company. After 65 you can spend it on anything, like a Traditional IRA.
Once your balance hits a threshold (usually $1,000–$2,000), most providers let you invest it like a retirement account — turning it into a long-term nest egg.
You choose how much to contribute and what to spend it on. Adjust your contribution anytime during the year — it's entirely yours to manage.
An HSA is powerful, but it's not for everyone. Here's the honest read on who tends to benefit — and who might be better served by Plan 1's predictable coverage.
The IRS sets the annual maximum. You can contribute up to these amounts across the year — and change your contribution whenever you like.
Plan 2 is the HSA-eligible plan. Here's the simple version of how the account works.
If you elect Plan 2, you're HSA-eligible. You'll receive your HSA setup details after you enroll — there's nothing extra you need to do beyond choosing Plan 2. The basics: it's funded by your own contributions (the company doesn't add to it), it gives you a federal tax break, and whatever you don't spend rolls over and stays yours. Questions? Email benefits@mybuildercares.com.
Savings depend on your tax bracket, and the calculator shows federal savings only. State income tax savings may apply on top — Louisiana, Mississippi, and Florida all treat it differently.
If you join mid-year, the IRS contribution limit is pro-rated for the months you're covered under the HSA-eligible plan.
An FSA is use-it-or-lose-it and not portable. The HSA rolls over forever and goes with you — it's the more flexible cousin, available only with Plan 2.
You can switch to the HSA-eligible plan during open enrollment, or after a qualifying life event (marriage, birth, loss of other coverage, etc.).
Run your tier and expected care through the calculator, then add an HSA contribution to see your tax savings — it's your own money set aside, and the tax break is yours to keep.