HSA-FSA

• Checking account opened at IncredibleBank – previous HSA amounts can be rolled in new account
• HSA dollars can be used for qualified medical expense
• Immediate tax savings when you contribute to the HSA

To contribute to a Health Savings Account (HSA), you must be enrolled in an HSA-eligible High Deductible Health Plan (HDHP) and no disqualifying coverage.

• Medicare is considered “other disqualifying coverage” meaning all parts of Medicare will result in being ineligible to contribute to an HSA.
• Neither employee nor employer can make new contributions to the employee’s HSA if the employee is HSA ineligible; however, the employee may seek reimbursement from HSA expenses with existing funds when HSA ineligible.
• If your spouse is enrolled in their employer’s general health FSA program, this disqualifies an employee from contributing from HSA contributions. Health FSAs follow the same federal eligibility rules as medical plans. Under federal tax law, the employee (subscriber), spouse, and children to 26 (whether they remain the parent’s tax dependent) are enrolled in the health FSA automatically and can reimburse their eligible expenses from the plan. The employee is covered under the spouse’s health FSA (unless that employer excludes spouses from coverage, which is rare) and thus can’t become HSA eligible before the end of his health FSA plan year. The employee can still enroll in their employer’s HSA qualified medical plan, and the employee and spouse can reimburse any qualified expenses, including your medical plan cost-sharing from their health FSA.
• Eligibility is determined month-by-month: HSA contributions will be reduced by 1/12 for each month during the year that the individual is not HSA eligible.
  • Example: An individual who becomes entitled to Medicare in May would have a contribution limited to 4/12 of the annual limit.

If you have dual insurance coverage you are disqualified from contributing to an HSA plan and receiving the employer contribution.

Benefit eligible employees will receive the full employer contribution on their first check in January. Any other month will be pro-rated based upon the effective date of coverage.

Employer HSA contributions are provided to employees to assist with deductible costs as well as applicable expenses.

Please contact the People Operations Department for assistance with this program.

HEALTH CARE REIMBURSEMENT ACCOUNT allows employees to use pre-tax monies to cover deductibles, co-pays and other non-covered eligible expenses. Applies to those without an Health Savings Account (HSA).

FSA dollars can be used for qualified medical expenses

Annual Maximum = $3,050, Rollover = $610

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DEPENDENT CARE REIMBURSEMENT ACCOUNT – allows employees to save taxes on eligible child or dependent care expenses

Annual Maximum = $5,000

Annual re-enrollment is required to continue each year.

• Dependent Care Reimbursement Form
• Automatic Reimbursement Enrollment Form
• Medical Flexible Spending Account Claim Form

Please contact the People Operations Department for assistance with this program.