Page 39 - 2022 AEO Benefit Guide

out and use your Long Term Disability benefits, you will receive 50% of your income,
which will be subject to all applicable taxes upon payout.
If you are out on short term disability and will require long term disability, Cigna will
automatically transition your claim to the long term disability division. Your claim
will then be reviewed for continued disability payments.

Health Savings Account (H.S.A.) H.S.A. FUNDS

AEO offers a health savings account (H.S.A.) to Associates who enroll into the Those enrolled in either the
Cigna Health Savings Account Plan or the Cigna Economy Health Savings Account Cigna Health Savings Account
Plan, which both meet the government standards for “qualified” High Deductible Plan or the Cigna Economy
Health Plans (HDHP). An H.S.A. is a tax-advantaged savings account which can be Health Savings Account Plan
used to pay for out-of-pocket medical expenses and much more, saving you money. will have a Health Savings
You can contribute up to a maximum of $3,650/single or $7,300/family. If you are over Account opened with HSA
the age of 55, you can elect to contribute an additional $1,000 each year over the Bank, our partner for HSA
maximums listed above. administration.

AEO Contribution to the H.S.A.
AEO’s contributions into your HSA are prorated depending on which quarter in
the plan year you enroll in the plans. We will make a maximum annual contribution
to HSA Bank in the amount of $500 for single or $1,000 for family coverage for those
that enroll in the Cigna Health Savings Account Plan. We will make a maximum annual
contribution to HSA Bank in the amount of $250 for single or $500 for family coverage
for those enrolling in the Cigna Economy Health Savings Account Plan. This pre-tax
contribution applies to your annual fund maximum and is automatically deposited BUDGET
into your HSA within 4 weeks of your enrollment. At the beginning of each plan
year that follows, you will receive the maximum contribution amount from AEO in
your account. There are no lifetime maximums associated with AEO’s contributions.

What Does an H.S.A. Do for You?
• Portability. You own your H.S.A., including the AEO contribution. If you switch
medical plans, decide to work for another employer or retire, the money in the
account is yours to use on future expenses.

• Investment Opportunity. The money in the account will earn tax-free investment
income interest! Any funds over $2000 in your account can be invested. HSA Bank
offers competitive investment opportunities, very similar to investment
opportunities available for a 401(k).
• Triple Tax Advantages. 1) Every contribution that you make is tax deductible.
2) Your savings grows on a tax deferred basis, so your are not taxed on your
investment income. 3) Money that you use for qualified expenses is tax free.
• Rolls Over Year After Year. There is no “use it or lose it” provision with a REMINDER
health savings account. All contributions that you
wish to make can be made
• Use for Expenses Incurred Now or Much Later in Life. H.S.A. funds may on the AEO Benefitfocus
be used to pay for out of pocket expenses such as deductibles, copays, portal. Ongoing deduc-
coinsurance, prescription drugs, dental and vision care, COBRA premiums, tions can be set up when you
long-term care premiums and even Medicare premiums after retirement age.
initially enroll, or you can
choose to set up deductions
for specific pay periods. You
also have the ability to make
a 1-time deduction.

FULL TIME BENEFITS — BUDGET 37