Health Savings Account

Stretch your dollars

An HSA is a smart way to pay for healthcare expenses now and in the future because it has triple tax savings—contributions to your HSA are tax free, any interest or earnings grow tax free, and you can use your HSA to pay for eligible expenses tax free. Money in your HSA is always yours, even if you change jobs or retire. Optum Financial administers the HSA.

• During Open Enrollment, you can elect your HSA contribution for the next year in Workday. If you don't make an election during Open Enrollment, you can choose to contribute at any time
• Optum Financial holds and manages HSA funds. Both M&T Bank and employee contributions are deposited into an FDIC-insured account
• Review the list of qualified expenses to help determine how much you would like to contribute on a pre-tax basis
• Download the Optum Financial app, to manage your account 24/7 or call 1-833-298-9046

HSA eligibility

You can contribute to an M&T HSA if you are enrolled in the Basic HDHP or Core HDHP.

You are not eligible to contribute to an M&T HSA if you:

• Enroll in the new Premier PPO. You can keep and use any money already in your HSA, but you cannot make HSA contributions in 2027
• Have other health insurance coverage that is not a high-deductible health plan, including coverage under your spouse’s plan
• Are enrolled in Medicare coverage. You can contribute for the months before you start Medicare Parts A, B, C or D on a post-tax basis through Optum Financial, not payroll

To have an HSA, you must complete required identity verification under the Patriot Act screening and accept the terms and conditions when you enroll on Workday.

HSA contributions

IRS contribution limits

In 2027, the annual HSA contribution limits are:

• $4,500 for employee-only coverage
• $9,000 for other coverage levels
• Additional $1,000 catch-up contribution if are age 55 or older in 2027

M&T Bank contribution

M&T will contribute to your HSA if you enroll in the Basic HDHP or Core HDHP based on eligibility, frozen earnings and coverage level. You do not have to elect an HSA during the enrollment process to receive M&T’s contribution.

Part-time employees in an HDHP, earning less than $40,000 and working between 10–29 hours per week will receive a $500 HSA contribution, regardless of coverage level elected.

Employee contribution

You can make pre-tax contributions to your HSA up to the IRS limits minus M&T Bank’s contribution. You must be under age 65 for the entire plan year to contribute through payroll. You do not need to contribute to the HSA to receive M&T’s contribution (if eligible).

Funds are available as they are deposited and your balance will carry over into 2028. You can change the amount you contribute at any time during the year in Workday.

Invest your HSA

Investing your HSA can help you save for future health care expenses and build long-term savings with triple-tax advantages:

• Contributions are income tax-free
• Earnings and investment growth are income tax-free
• Withdrawals for qualified medical expenses are income tax-free

When your HSA balance reaches the required minimum, typically $1,000, you can invest a portion of your HSA funds through Optum Financial.