Page 5 - Guide
P. 5
Tax Advantages of the HSA Flexible Spending Account
Contributions to an HSA are tax-free (they can be made through Note
payroll deductions on a pre-tax basis when you open an account with IRS rules prohibit plan participants
BeneitWallet) from having both a medical FSA
The money in this account (may include interest and investment and an HSA at the same time.
earnings) grows tax-free Any money remaining in your
As long as the funds are used to pay for qualiied expenses, they are medical FSA on December 31,
spent income tax-free 2016, will automatically rollover
to a limited purpose FSA on
How Do I Put Money Into My HSA? January 1, 2017. This allows you
You can elect to participate in the BeneitWallet administered HSA, to utilize the grace period, which
Anthem’s HSA banking partner, and have payroll deductions taken on a ends March 15, 2017, for any
pre-tax basis and deposited into your account. You may also open an HSA unused elections. Your unused
at a inancial institution of your choice. In that case, you would deposit election, however, can only be
funds on an after-tax basis and deduct the amount of your contributions used on dental or vision expenses.
when you ile your income taxes. This accommodation will allow
you to contribute to the HSA on
HSA Funding and Limits January 1, 2017.
The IRS has placed maximum contribution limits on the amounts you can
elect to defer into your HSA. Below are the limits for 2017:
$3,400 for employee only coverage
$6,750 for employee plus dependent coverage
Individuals age 55 and older may make an additional $1,000 annual
contribution to their HSA.
McCormack Baron will continue to contribute seed money to an
employee’s health savings account. McCormack Baron will contribute
$500 for those enrolled in employee only coverage and $1,000 for those
enrolled in employee + dependent coverage. Seed money will only be
contributed to a BeneitWallet administered HSA. Your BeneitWallet
account must be set up by February 28, 2017.
Please note the IRS maximum is an employer + employee contribution
maximum. If you want to contribute the maximum contribution, you
must take into account what McCormack Baron is contributing on your
behalf as seed money.
5
Contributions to an HSA are tax-free (they can be made through Note
payroll deductions on a pre-tax basis when you open an account with IRS rules prohibit plan participants
BeneitWallet) from having both a medical FSA
The money in this account (may include interest and investment and an HSA at the same time.
earnings) grows tax-free Any money remaining in your
As long as the funds are used to pay for qualiied expenses, they are medical FSA on December 31,
spent income tax-free 2016, will automatically rollover
to a limited purpose FSA on
How Do I Put Money Into My HSA? January 1, 2017. This allows you
You can elect to participate in the BeneitWallet administered HSA, to utilize the grace period, which
Anthem’s HSA banking partner, and have payroll deductions taken on a ends March 15, 2017, for any
pre-tax basis and deposited into your account. You may also open an HSA unused elections. Your unused
at a inancial institution of your choice. In that case, you would deposit election, however, can only be
funds on an after-tax basis and deduct the amount of your contributions used on dental or vision expenses.
when you ile your income taxes. This accommodation will allow
you to contribute to the HSA on
HSA Funding and Limits January 1, 2017.
The IRS has placed maximum contribution limits on the amounts you can
elect to defer into your HSA. Below are the limits for 2017:
$3,400 for employee only coverage
$6,750 for employee plus dependent coverage
Individuals age 55 and older may make an additional $1,000 annual
contribution to their HSA.
McCormack Baron will continue to contribute seed money to an
employee’s health savings account. McCormack Baron will contribute
$500 for those enrolled in employee only coverage and $1,000 for those
enrolled in employee + dependent coverage. Seed money will only be
contributed to a BeneitWallet administered HSA. Your BeneitWallet
account must be set up by February 28, 2017.
Please note the IRS maximum is an employer + employee contribution
maximum. If you want to contribute the maximum contribution, you
must take into account what McCormack Baron is contributing on your
behalf as seed money.
5
