Consumer Accounts
Health Savings Account (HSA)
Funds to help cover out-of-pocket healthcare expenses
Flexible Spending Account (FSA)
A tax-deferred account to pay for certain out-of-pocket expenses.
Health Savings Account (HSA)
Need funds to help cover out-of-pocket healthcare expenses? Consider a Health Savings Account (HSA). An HSA is a personal healthcare bank account used to pay for qualified medical expenses and funded by you. HSA contributions and withdrawals for qualified healthcare expenses are tax-free. You must be enrolled in an HDHP to participate.
Eligible Expenses
Your HSA can be used for qualified expenses for you, your spouse, and/or tax dependent(s), even if they are not covered by your plan. If you are not currently enrolled in an HDHP but you have unused HSA funds from a previous account, those funds can still be used for qualified expenses.
Eligible expenses include doctors’ visits, eye exams, prescription expenses, laser eye surgery, and more. Check out IRS Publication 502 for a complete list of eligible expenses.
Eligibility
You are eligible to contribute to an HSA if:
- You are enrolled in an HSA‑eligible high Deductible Health Plan.
- You are not covered by your spouse’s non‑HDHPhealth plan.
- Your spouse does not have a healthcare flexible spending Account or Health Reimbursement Account.
- You are not eligible to be claimed as a dependent on someone else’s tax return.
- You are not enrolled in Medicare or TRICARE.
- You have not received Department of Veterans Affairs medical benefits in the past 90 days for non‑service‑related care. (Service‑related care will not be taken into consideration.)
Your Money, Your Account
YourHSA is a personal bank account that you own and administer. It’s up to you how much you contribute, up to the IRS maximum allowable amounts, when to use the money for medical services, and when to reimburse yourself. You can save and roll over HSA funds to the next year if you don’t spend them all in the calendar year.
You can even let funds accumulate year‑over‑year to use in retirement. HSA funds are also portable if you change jobs. There are no vesting requirements or forfeiture provisions.
IRS Annual Limits
The IRS places an annual limit on the maximum amount that can be contributed to HSAs. For 2021, contributions (which include any employer contribution) are limited to the following:
It’s up to you how much to contribute to your HSA. Buying a new house or sending a kid to college? You can contribute less this year. Paid off your student loans or got a new job? Stash the annual max in your account.
Flexible Spending Account (FSA)
Flex your spending power! A Flexible Spending Account (FSA)is a special tax-free account you put money into to pay for certain out-of-pocket expenses. Optum is your new Flexible Spending Accounts (FSAs)vendor for 2021. Please visit www.optumbank.com for more information.
Your FSA money can cover the cost of going to a chiropractor or acupuncturist, if your insurance doesn’t already cover it.
Health Care Flexible Spending Account
You can contribute up to $2,750 annually for qualified medical expenses(deductibles, copays and coinsurance) with pre‑tax dollars, reducing your taxable income and increasing your take‑home pay. You can even pay for eligible expenses with an FSA debit card at the same time you receive them without waiting for reimbursement.
Please note: Over‑the‑counter (OTC) drugs are not eligible for reimbursement through an FSA unless you have a prescription for them.
Dependent Care Flexible Spending Account
In addition to the Healthcare FSA, you may opt to participate in the Dependent Care FSA — whether or not you elect any other benefits. You can set aside pre‑tax funds into a Dependent Care FSA for expenses associated with caring for elderly or child dependents. Unlike the Healthcare FSA, reimbursement from your Dependent Care FSA is limited to the total amount that is deposited in your account at that time
- With the Dependent Care FSA, you can set aside up to $5,000 to pay for child or elder care expenses on a pre‑tax basis.
- Eligible dependents include children under 13and a spouse or other individual who is physically or mentally incapable of self‑care and has the principal place of residence as the employee for more than half the year may be a qualifying individual.
- Expenses are reimbursable if the provider is not your dependent.
- You must provide the tax identification number or Social Security number of the party providing care to be reimbursed.
FSA VS HSA
Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are both ways to save pre‑tax money to pay for your eligible healthcare costs. Which one is right for you?
