MCA Template 4
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HSA
Commuter
FSA
HSA
How an HSA can benefit you and your wallet
Whether you are a Health Savings Account (HSA) newbie or a seasoned account holder, brush up on best practices for using your account.
Just the basics
An HSA is a short-term or long-term tax-free saving for eligible out-of-pocket health care expenses. The account belongs to you and grows year over year. You maintain ownership, even if you leave the company. HSA money is yours to save and invest or spend on eligible health care expenses.
[Company] HSA Contributions
Chart Placeholder - Detailing the Company's Contributions
[Compnay] contributes funds to your HSA based on the plan you select and whether you qualify as "employee only" or "family." (Um...that's free money!)
Based on the 2021 HSA maximums, you will want to adjust your additional contributions accordingly.
Contributions are prorated based on date of eligibility (DOH)
- All HSA elections are effective the first of the month after or coinciding with your hire date, if hired on the first.
- Contributions are prorated based on your hire date or date of eligibility
2021 HSA Contribution Limit Employee: $3,600 Family: $7,200
Translation: Create a rainy-day fund for future costs.
Resources for Download
FSA
How an FSA can benefit you and your wallet
If you are new to the flexible spending account (FSA), or if you’ve been processing those receipts for years, here are some key details to help you make the most of your FSA.
FSA Bottom Line
A health care flexible spending account, or FSA, is an employer-sponsored benefit that allows participants to set aside pre-tax funds from their paychecks to help them pay for out-of-pocket health care expenses throughout the year. FSAs are an annual plan-year benefit—meaning you have a specified amount of time to use your funds. You'll want to spend down this account every year based on your plan's rules.
Contribution Limit: $2,750
Translation: You do not pay taxes on your FSA funds when you use them for qualified expenses, so it’s like a discount every time you use your Healthcare FSA funds on health-related expenses.
Limited Purpose FSA
How an LPFSA can benefit you and your wallet
A limited purpose flexible spending account, or LPFSA, is a special type of FSA. It’s an employer-sponsored benefit that allows participants to set aside pre-tax funds from their paychecks to help them pay for out-of-pocket dental and vision expenses throughout the year. LPFSAs have "use it or lose it" forfeiture provisions that require you to spend your LPFSA funds in the year you contribute them (or in a short grace period thereafter).
Earmarked Funds to Maximize Savings
You can pair your HSA with an LPFSA. This lets you pay for immediate dental and vision expenses, preserving your HSA for long-term savings and investment growth. The LPFSA helps you cover the immediate expenses while you keep on SAVING in your HSA, further lowering your taxable income.
Contribution Limit: $2,750
Translation: Why enroll? Paying for your out-of-pocket costs for your dental and vision expenses allows you to preserve your HSA balance and to participate in a high deductible health plan with lower monthly premiums.
Dependent Care FSA
Already paying for dependent care?
If you pay for daycare, after-school care, day camp or elder care for any of your dependents, you could be SAVING money on those costs! How Momentive offers a dependent care flexible spending account, or DCFSA, that allows you to set aside a little from each paycheck to go toward your dependent care for the year.
How does this help? You do not pay taxes on these funds when you use them for eligible expenses, which saves you 20-30% over paying for care outright.
Contribution Limit: $5,000
Why enroll? Setting aside your funds in a dependent care account can save you between $1,000 - $1,500 a year!*
*contributing the maximum allowed for married, filing jointly at $5,000 at a 20% – 30% tax savings.
Commuter Benefits
Transportation benefits let you set aside pre-tax dollars in an account to be used for your commuting costs. Employees can use these benefits to pay for public transportation - trains, subways, even parking passes - used in daily commute.
If you pay for mass transit or parking for work, you can save money by participating in [Company's] Commuter Benefits Program. This program lets you set aside pre-tax dollars to pay for eligible parking and transit expenses.
The 2020 contribution limit is $270 per month for parking expenses and $270 per month for transit expenses.
Xxxxxxx is our Commuter Benefits Program administrator. You can enroll in the program and set up a Commuter Transit and/or Commuter Parking Account through Xxxxxxx at any time during the year, and you can change your elections from month to month. To enroll in the Commuter Benefits Program and make your pre-tax transit and/or parking elections, visit www.website.com. or _______ for Additional Information.