Health Savings Account (HSA)

Employees enrolled in a high-deductible health plan (HDHP) through the Northrop Grumman medical plan may be eligible to establish and contribute to an HSA through Fidelity Investments or another financial institution. The HSA is a tax-favored account that allows you to set aside money on a pre-tax basis to be used on a pre-tax basis to pay for eligible medical expenses. For more information, view IRS Publication 969.

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If you enroll in a high-deductible health plan (HDHP) through the Northrop Grumman Health Plan (for example, Plan 2 - Medium Premium/Medium Deductible Plan, Plan 3 - Low Premium/Low Deductible or the Kaiser Mid-Atlantic HDHP) and satisfy other IRS requirements, you may be eligible to establish a  (HSA).

The HSA is a tax-favored account that allows you to set aside money on a pre-tax basis to be used for reimbursement of eligible medical, prescription, dental and vision expenses. Here’s how it works:

  • The account belongs to you and is portable ifyou leave the company.
  • Unused funds roll over from year to year.
  • Interest and investment returns grow tax-free as well (subject to minimum account balance).
  • If you establish an HSA through Fidelity, your contributions can be deducted directly from your paycheck before taxes.
  • You may contribute any amount up to the IRS maximum and are responsible for making sure your contributions don’t exceed the IRS limit.
  • View Annual Enrollment Guide HSA contribution limits.
  • If enrolled in an HSA may also have a limited-purpose Health Care Flexible Spending Account (HCFSA). A limited purpose HCFSA covers qualified dental and vision expenses.

Visit NetBenefits for more information.

Note: Federal law prohibits employees from establishing and contributing to an HSA and participating in a general-purpose HCFSA at the same time, including if your spouse has a general-purpose HCFSA.

Disclaimer: The HSA isn't part of the Northrop Grumman medical plan.

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