You might have noticed that your starting balance in your Health Spending Account (HSA) is lower than the plan limit. This is usually due to the proration of your benefits based on your start date in the myHSA system. Here’s a quick explanation of why this happens and how it works.
​

If you are hired by your employer and added to the benefits plan partway through the benefit year, your balance may be prorated. This means that instead of receiving the full annual limit, you get a proportionate amount based on how much of the year remains.
​

Let’s break it down with an example:

Since the employee started halfway through the benefit year, they would only eligible for half of the plan limit. Here’s the calculation:

So, for your first year, your HSA balance would be $400. Starting in the next benefit year, you’ll be eligible for the full $800.
​

Prorating the balance is a decision made by the plan administrator upon your enrolment. Plan Admins have the ability to select a full distribution or prorated distribution when they enrol their employees. This approach ensures that all employees receive a fair portion of the annual limit based on when they join the plan and the companies internal policies.
​

If you have any questions or need further clarification, our support team is here to help. Contact us via live chat or email at support@getmyhsa.com. We’re here to make sure you fully understand and can make the most of your Health Spending Account.

If you believe there has been an error in your balance set up, it would be best to reach out to your employer or plan administrator for assistance.