Human Resources

Retirement Medical Savings Account (RMSA)

 
WHAT IS AN RMSA?
An RMSA can be thought of as a Roth IRA for retiree health care. It is a trust or custodial account established exclusively to receive after tax contributions on behalf of eligible active faculty and staff to be used for retiree health care expenses. Earnings on the amounts contributed accumulate on a tax-free basis and are not subject to tax if they are used to pay for eligible medical expenses for employees and their dependents after the employee retires. Eligible expenses include retiree health plan premiums, Medicare premiums, long term care premiums and out-of-pocket health expenses after retirement.
 
WHEN CAN I ACCESS MY BALANCE?
Although a terminated employee will be offered a one-time election upon termination to access their RMSA balance to pay for current medical expenses, the primary purpose of the RMSA is to help pay for out-of-pocket medical costs after retirement. If a terminated employee declines the offer of immediate access to their funds for current claims submission, they will only be allowed to withdraw from their account after they attain age 55 or older, are retired and enrolled in a retiree health plan such as Medicare Parts A & B, a Medicare Supplement Plan, or a health plan for retirees under age 65. Reimbursements for eligible expenses are paid on a pro-rata basis from employee and employer funds (if applicable*).
 
WHAT HAPPENS TO MY BALANCE IF I DIE?
If the employee/retiree dies and has a surviving spouse, ownership of the account and all its assets will be transferred to the spouse and must be used for his or her retiree healthcare expenses. If the employee/retiree dies and does not have a surviving spouse, the unused employee contributions and earnings associated with those contributions will be paid to the employee’s estate. (This payment is made from University funds outside of the Plan.)  The unused University contributions (if applicable*) and the earnings associated with those contributions will be forfeited back to the University to be used to offset administration fees.
 
WHO PAYS THE PLAN FEES?
The University will pay the plan administration fees for active employees and Washington University retirees and surviving spouses. Effective January 1, 2015, administration fees will be deducted from participant account balances for those who terminate employment (not WUSTL retirees).  This fee is approximately $18 per year, per participant, and is subject to change.
 
WHEN CAN I ENROLL OR MAKE CHANGES?
Enrollment in the RMSA can only be made during the open enrollment period in November for the following calendar year. The employee cannot change their contribution amount mid-year, but may cancel their contribution at any time.  Those who cancel their contribution during the year may not re-enroll in the plan until the following year.
 
WHAT ARE MY INVESTMENT OPTIONS?
The RMSA plan administrator is TIAA-CREF.  If you enroll in the RMSA during Open Enrollment, your contributions will be automatically invested in the TIAA-CREF Lifecycle Fund that is most appropriate for your age.  After your initial payroll deduction, you will have the opportunity to transfer your funds to other investment options and/or to change the investment allocation of future contributions by either calling TIAA-CREF at 1-877-554-1004, or on-line at www.TIAA-CREF.org.  The Plan offers the 17 different TIAA-CREF investment funds listed by type of investment below:   
 
Equities
Fixed Income
Money Market
Multi-Asset
Multi-Asset (cont.)
International Equity Index Fund
Bond Fund
Money Market Fund
Lifecycle 2010 Fund
Lifecycle 2035 Fund
Mid-Cap Value Fund
 
 
Lifecycle 2015 Fund
Lifecycle 2040 Fund
Small-Cap Blend Index Fund
 
 
Lifecycle 2020 Fund
Lifecycle 2045 Fund
Large-Cap Growth Fund
 
 
Lifecycle 2025 Fund
Lifecycle 2050 Fund
Equity Index Fund
 
 
Lifecycle 2030 Fund
Lifecycle Retirement Income Fund

 

WHERE CAN I GET MORE INFORMATION?

For information on accessing your RMSA account balance after retirement, please see the “Retiree Benefitssection of our website.

For complete details of eligibility, definitions, benefits and guidelines, please refer to the RMSA Plan Document.

*Effective January 1, 2014, the University eliminated employer contributions to the RMSA plan. Any University contributions received in previous years will remain in the participant’s account and can be used for out-of-pocket medical expenses as outlined in the Plan Document.

 

Danforth Benefit Representative's Contact Information:
Mary Stull
marystull@wustl.edu
(314) 935-5701
Campus Box: 1190

Medical School Benefit Representative's Contact Information:
Pam Guntli
guntlip@wustl.edu
(314) 362-4925
Campus Box: 8002

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