Tax-Advantaged Healthcare Accounts

Santander provides a choice of tax-advantaged healthcare accounts that you can use to help pay for out-of-pocket healthcare expenses.

There are three healthcare accounts to choose from:

  • Health Savings Account (HSA)
  • Healthcare Flexible Spending Account (FSA)
  • Limited Purpose Healthcare Flexible Spending Account (LP FSA)

If you enroll in the HSA Choice Plus plan, you should consider contributing pre-tax dollars to an HSA or LP FSA. If you enroll in the Choice Plus PPO plan, you will want to consider the FSA. Click “Compare Account Types” for more information about FSAs. Additional information about the HSA is below.

Health Savings Account (HSA)

An HSA is an individually owned account that works with a medical plan with a deductible that satisfies certain thresholds defined by the Internal Revenue Service (IRS), such as the HSA Choice Plus medical plan. You can use money in an HSA to pay for eligible medical, prescription drug, dental and vision expenses that you and eligible family members incur, now or in the future, even in retirement.

HSA Eligibility Requirements

To be eligible to open and contribute to an HSA, you must meet all of the following IRS requirements:

  • You’re covered under a qualifying “high deductible health plan” (HDHP) such as the HSA Choice Plus medical plan.
  • You’re not covered under another health plan that is not a high deductible health plan.
  • You’re not covered under a regular Healthcare Flexible Spending Account (FSA), including your spouse’s. Note: A "limited purpose" Healthcare FSA does not impact HSA eligibility
  • You’re not enrolled in Medicare, Medicaid or Tricare.
  • Except for a "service-connected disability,” you have not received medical benefits (including prescription drug benefits) from the Department of Veterans Affairs or one of its facilities in the past three months.
  • You are not claimed as a dependent on someone else’s tax return.

Contributions to an HSA

If you enroll in the HSA Choice Plus medical plan, are eligible to open an HSA and open a Fidelity HSA, then Santander will make a lump- sum contribution into your Fidelity HSA:

  • $5001 if you’re enrolled in individual coverage in the HSA Choice Plus medical plan.
  • $1,0001 if you cover a family member. In addition to Santander’s contribution, you can make pre-tax paycheck contributions to your Fidelity HSA.

  • Up to $3,1002 if you’re enrolled in individual coverage in the HSA Choice Plus medical plan.
  • Up to $6,2002 if you cover a family member.
  • And, if you’re age 55 or older in 2020, you can make an additional $1,000 “catch-up” contribution to the Fidelity HSA.

--- 1. Santander’s lump-sum HSA contribution generally will be made in January for employees who are actively employed as of 1/1/2021 and do not have any other coverage that would make them ineligible for the HSA. Santander’s HSA contribution will be pro-rated for new hires, employees who were actively employed as of 1/1/2021 but had other coverage that made them ineligible for the HSA and for employees who enroll mid-year as a result of a qualified life event. In all cases, you must be an active employee at the time the contribution is made. 2. Your paycheck contribution amounts will be pro-rated if you are hired after 1/1/2021, were actively employed as of 1/1/2021 but had other coverage that made you ineligible for the HSA or enroll mid-year as a result of a qualified life event.

No Use It or Lose It

You can use the money in the HSA to help pay for eligible medical, dental, vision and/or prescription drug expenses that you and eligible family members incur during the current year, or you can let the money in the HSA roll over from year to year. An HSA is not subject to a “use it or lose it” rule. Instead, you can invest the money in your HSA. Plus, if you leave the Company, the HSA is yours.

Triple Tax Advantages

The HSA offers triple tax advantages.

  • Any amounts that you and Santander contribute to your Fidelity HSA are made on a pre-tax basis, which means that they are not included in your taxable income.
  • If you invest the money in your HSA, the earnings aren’t taxed.
  • When you take money out of your HSA to pay for eligible medical, dental, vision and/or prescription drug expenses, you’re not taxed on the distributions.

Opening Your Fidelity HSA

Fidelity is Santander’s HSA administrator. If you’re eligible for an HSA and would like to receive Santander’s HSA contribution, you’ll need to open a Fidelity HSA. Visit www.netbenefits.com to open your Fidelity HSA. If you don’t have an account with Fidelity (e.g., previous employer’s 401(k), Individual Retirement Account (IRA), 529 College Savings Plan), you’ll first need to register as a new user. Once you log in, follow the prompts to open your Fidelity HSA.

After you have opened your account, if you want to make pre-tax paycheck contributions to your Fidelity HSA, you’ll make those elections on Fidelity’s NetBenefits website too.

Ready to enroll?

This site describes certain Santander benefit plans and policies. Your eligibility for and entitlement to a benefit mentioned herein are governed by the terms of the official plan document or policy. Santander reserves the right to amend or terminate its plans and policies in full or in part at any time for any reason. In the event of a conflict between this site and the official plan document or policy, the official plan document or policy will control. Your employment is at will.