HSA & FSAs
Administered by Optum Financial
Tools to help you save and invest in yourself
Health savings accounts (HSAs) and health care and dependent care flexible spending accounts (FSAs) are tax-advantaged vehicles that allow you to save for qualified medical and dependent care expenses, as determined by the IRS. Immanuel is pleased to offer these accounts as part of its financial well-being platform to help employees enjoy significant long-term tax and savings benefits.
Health Savings Account (HSA)
Immanuel employees who choose the Aetna Broad Network Plan, a high-deductible health plan (HDHP), have a unique resource to help save, pay for care and even build wealth over time: a health savings account, or HSA. Here are some key points:
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HSAs offer triple-tax savings. They allow you to set money aside on a pre-tax basis, the earnings from the investment grow tax-free and withdrawals are not taxed as long as the money is used for qualified medical expenses.
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HSAs have an annual maximum contribution limit. In 2024, the maximum amount an individual can contribute to their HSA is $4,150; the maximum amount for families is $8,300. If you are 55 or older, you may contribute an additional $1,000.
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You must elect to participate in an HSA annually during Open Enrollment. Even if you remain on the HDHP health plan from one year to the next, you must set up an HSA each year during Open Enrollment if you wish to have an account for the following calendar year.
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Want Immanuel to contribute an additional $60 to your H.S.A? If you participate in Immanuel’s Wellness Program and completed the necessary requirements, you can pick an H.S.A. contribution as your reward.
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Change your contribution at any time during the year. With other benefit you have to wait till annual enrollment to make a change. HSAs are flexible and you can change your contribution at any time. (Click here for instruction HSA Deduction Change Process).
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You must qualify to have an HSA. To contribute to an HSA, an HDHP must be your only health insurance plan, you can not be eligible for Medicare and you can’t be claimed as a dependent on someone else’s tax return.
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Your HSA belongs to you. If you change employers or retire, you keep the money in the account. Once you enroll in Medicare, you may no longer contribute to your HSA but you can continue to use the money in the account for qualified medical expenses.
REMINDER:
Only employees enrolled in the Broad Newtork Plan are eligible to open and contribute to a Health Savings Account!
Health Care Flexible Spending Account (FSA)
Immanuel employees who participate in the SimplePay Health Insurance Plan can elect to have a health care flexible spending account (FSA). Like an HSA, a health care FSA lets you set aside pre-tax dollars for qualified medical expenses, but there are some key differences to be aware of:
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There are limits to the amount you can contribute. In 2024, the maximum amount you can contribute to a health care FSA is $3,200. However, if you're married, your spouse can also put up to $3,200 in an FSA with their employer.
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You must elect to participate in a health care FSA annually during Open Enrollment. Your FSA requires an active election each year. Even if you had one last year, you will not automatically have an account in the new calendar year if you do not set it up during Open Enrollment.
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The money is pre-tax and available upfront. The money in a health care FSA comes out of your paycheck before taxes in regular increments. The total contribution amount you select during Open Enrollment is available for you to spend on Jan. 1 for 2024 expenses. When you have an eligible expense, you can pay for it with your FSA debit card or pay out-of-pocket and request reimbursement.
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Funds set aside in a health care FSA must be spent by the plan year's end. You have from Jan. 1 — Dec. 31 each year to incur eligible medical expenses. You must submit claims for those expenses no later than March 31 of the following year.
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FSAs are not portable. If you leave your job, your FSA (health care and dependent care) plan participation ends on your last day of employment and any account balance will be forfeited.
Dependent Care Flexible Spending Account (DCFSA)
All eligible employees may elect a dependent care FSA (DCFSA), regardless of the health plan they elect or whether they enroll in an Immanuel health plan at all. DCFSAs are tax-advantaged accounts that let you use pre-tax dollars to pay for eligible dependent care expenses. Here are some things to keep in mind:
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Funds can be used for child and adult care services. Qualifying dependents for DCFSAs include children under age 13 or a dependent adult who lives with you at least half of the time and, due to physical or mental issues, needs care and supervision during your workday.
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There are limits to the amount you can contribute. In 2023, the maximum you can set aside if you are single or if you are married and filing a joint tax return is $5,000. If you are married and filing separate returns, the maximum amount is $2,500.
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You must elect to participate in a DCFSA annually during Open Enrollment. Your DCFSA requires an active election each year. Even if you had one last year, you will not automatically have an account in the new calendar year if you do not set it up during Open Enrollment.
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The money is set aside pre-tax and accumulates throughout the year. Unlike a health care FSA, DCFSAs are pay-as-you-go accounts, meaning funds are not advanced by the employer. Instead, your pre-tax dollars are withdrawn automatically from each paycheck and deposited into your account. You may only submit claims against the funds that are available in your account, not your entire election amount.
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You can take advantage of both the DCFSA and the dependent care tax credit, but you cannot double dip. Double-dipping is when you request reimbursement twice for the same expense, so you can't be reimbursed from your DCFSA for an expense and then claim the same expense for the tax credit. In addition, any expenses reimbursed under your DCFSA may not be reimbursed under your spouse's DCFSA, and vice versa.
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Funds set aside in a DCFSA must be spent by the plan year's end. You have from Jan. 1 — Dec. 31 each year to incur eligible dependent care expenses. All funds in the account must be used during the plan year and cannot be rolled over to the next. You have until Mar. 31 of the following year to submit claims; unused funds will be forfeited.
Resources
Commonly Used Forms
HSA: