HSA & FSA
Employees enrolled in the High Deductible Health Plan (HDHP) may elect to open a Health Savings Account (HSA), which allows individuals to save money tax-free to pay for eligible medical expenses. Employees enrolled in the Base plan are not eligible to have an HSA. If you enroll in the HSA, the effective date will be the 1st of the month following 30 days of full time employment (the same effective date as the health insurance plans).
HSA funds are available once they are deducted from your paycheck and deposited into your HSA account. Any unused funds carry over year after year, which will allow your account to grow substantially. The IRS limits the amount you can contribute within a calendar year, and this maximum can change annually.
Employees who elect an HSA will have an account opened on their behalf for which they will receive a debit card that they can use to pay for eligible expenses. The account is administered by HSA Bank.
Things to know regarding FSA and HSA participation:
- HSA participants cannot also enroll in the medical FSA that is offered to Base plan participants, but they can enroll in the dependent care FSA.
- Employees enrolled in the High Deductible Health Plan (HDHP) may enroll in the out-of-pocket medical and/or dependent care FSA if they do not enroll in the HSA option.
Get the App
Download the HSA Bank mobile app to see your HSA balance, request a reimbursement and manage health expenses.
Healthcare Flexible Spending Accounts (FSA) allow you to set aside a portion of your income pre-tax to help pay for out-of-pocket medical, dental and vision expenses. If you enroll in the FSA, the effective date will be 60 days of full time employment. The IRS limits the amount you can contribute in a calendar year, and this maximum can change annually.
When enrolling in an FSA, take into consideration the remaining number of payrolls left in this calendar year before you decide how much you want to contribute. You can carry over up to $640 of your FSA balance into the next plan year (known as the carryover provision); however, any remaining balance over $500 in your account at the end of the plan year will be lost. Mid-year changes are only allowed if you experience a qualified life event, such as marriage, divorce or birth of a child, which must be reported to HR within 30 days.
Things to know regarding FSA and HSA participation:
- Employees enrolled in the Base plan are not eligible to participate in an HSA.
- Healthcare FSA participants may also enroll in the dependent care FSA, if they choose.
- Employees enrolled in the High Deductible Health Plan (HDHP) may enroll in the out-of-pocket medical and/or dependent care FSA if they do not enroll in the HSA option.
Get the App
The Benefits Mobile App by Discovery Benefits/WEX is the quick and easy way to manage your FSA. Check your balances, submit claims, snap and submit photos of receipts—all on the go!
Download the Benefits Mobile App by Discovery Benefits/WEX for iOS or Android.
Dependent Care Flexible Spending Account (DCFSA) allow you to set aside a portion of your income pre-tax to help pay for out-of-pocket dependent care services, such as preschool, summer day camp, before- or after-school programs and child or elder daycare. If you enroll in the DCFSA, the effective date will be 60 days of full time employment. The IRS limits the amount you can contribute in a calendar year, and this maximum can change annually.
If you consider enrolling in this plan, you will want to carefully calculate your out-of-pocket dependent day care expenses that you anticipate for the current year take into consideration the remaining number of payrolls left in this calendar year before you decide how much you want to contribute. Any remaining balance in your account at the end of the plan year will be lost. Mid-year changes are only allowed if you experience a qualified life event, such as marriage, divorce or birth of a child, which must be reported to HR within 30 days.
Once enrolled, you will receive your debit card and instructions by mail along with additional information on dependent care expense reimbursement. When participating, you will need to submit receipts to substantiate out-of-pocket dependent day care expenses.
Things to know regarding FSA and HSA participation:
- Employees enrolled in either the Base plan or the HDHP are eligible to participate in a DCFSA.
- Healthcare FSA participants may also enroll in the dependent care FSA, if they choose.
- Employees enrolled in the High Deductible Health Plan (HDHP) may enroll in the out-of-pocket medical and/or dependent care FSA if they do not enroll in the HSA option.
Get the App
The Benefits Mobile App by Discovery Benefits/WEX is the quick and easy way to manage your FSA. Check your balances, submit claims, snap and submit photos of receipts—all on the go!
Download the Benefits Mobile App by Discovery Benefits/WEX for iOS or Android.
