Page 40 - 2022 AEO Benefit Guide

H.S.A. How to Transition from a
Healthcare Flexible Spending Account (FSA) in 2020
INVESTMENT to a Health Savings Account (HSA) in 2021
OPPORTUNITY At the beginning of the plan year, AEO will transfer the maximum carryover funds
from your FSA to a LFSA. You will be able to use your LFSA for eligible out-of-pocket
All investment elections can dental and vision expenses in the new plan year. This provides AEO with the opportunity
be made via HSA Bank, which to apply the employer contribution into your HSA by end of January. You’ll also be
can be accessed through your permitted by the IRSA to make pre-tax contributions to your HSA starting the first
www.myCigna.com account pay of the new plan year.
or mobile app.
How to Make Contributions in the H.S.A.

Enrolling in one of AEO’s HDHPs automatically opens an HSA with HSA Bank, and
you will automatically receive AEO’s employer contribution. You have the
ability to make pre-tax contributions from your bi-weekly paychecks to fund the
account, up to the maximum federal caps (minus AEO’s employer contribution). All
contributions that you wish to make can be made on the AEO Benefitfocus portal.
Ongoing deductions can be set up when you 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. There is a lot of flexibility on the AEO Benefitfocus portal, so
you can manage these contributions in a way that suits your budget and needs.
Additionally, if you have a large expense that you haven’t planned for, you have
the ability to move money from your checking or savings account. Please keep in
mind, when you make a contribution to your HSA outside of payroll deductions,
you need to report the amount of money that you put into your HSA when
completing your annual taxes. This ensures that the money you have placed in the
account is tax deductible, giving you the same pre-tax benefits you would receive
from pre-tax payroll deductions.
You will receive a packet of information from HSA Bank explaining how you can
use your account, including a debit card to use for point of sale services.
* Funds can only be used for expenses incurred by Same Sex Domestic Partners when considered a tax dependent.

Health Reimbursement Account (H.R.A.)

AEO offers a health reimbursement account (H.R.A.) to Associates who enroll into the
Cigna Open Access Plus HRA Plan. An H.R.A. helps to defray the costs associated with
your out-of-pocket health care expenses. AEO will fund your H.R.A. with $500 for single
coverage, or $1,000 for 2-person and family coverage.

How Does an H.R.A. Work?

• Associates newly enrolling in the Cigna Open Access Plus HRA plan will
receive an HRA Debit Card. If you are enrolled year over year, you will only
receive a new HRA Debit Card when your card expires. This puts you in
control of when you use your money, so you can use the debit card to pay
for your copays, deductibles, out-of-pocket expenses and prescription drugs
as needed. It also gives you the ability to save the money in the account to
prepare for a future expense and/or to ensure that bills generally covered
by secondary or Medicaid coverage are not paid for out of your HRA.

38 AMERICAN EAGLE OUTFITTERS, INC.