Page 7 - Acadia 2021 Benefits Guide Tower
P. 7
Spending Accounts
Health Care Flexible Spending Account (FSA) Health Savings Account (HSA)
A Health Care Flexible Spending Account (FSA) allows you To help offset the cost of medical expenses, you can pair
to set aside a portion of your salary, before taxes, to pay for the HDHP medical plan with a Health Savings Account. This
qualiied medical care expenses. Because that portion of provides you the opportunity to put pre-tax money aside
your income is not taxed, you end up with more money to help pay for your out-of-pocket medical expenses. This
in your pocket. It is designed to reimburse you for out-of- combination gives you ultimate control over how you spend
pocket health care expenses incurred by you or your eligible your health care dollars.
dependents that are not reimbursable through any other
beneit plan. Examples of eligible expenses are deductibles, Beneits of HSA:
copays, prescriptions, vision exams, prescription eyeglasses, • You choose how much to set aside for health expenses
dental expenses and many others. Many over the counter up to IRS maximum.
drugs are now an eligible expense. Your full annual election » $3,600 for single coverage annually
amount for the Health FSA is available at any time during
the plan year, regardless of how much you have contributed » $7,200 for family coverage annually
to date.
• Reduces taxable income – deposits are taken out of your
• Annual Contribution minimum is $100 paycheck before income tax is calculated and withdrawals
for qualiied medical expenses are tax-free.
• Annual Contribution maximum is $2,750*
• Grows with you—the money in the account is yours to
The IRS has a “use or lose” rule which states that you lose any invest and the earnings are tax-free.
leftover balance in your account at the end of the plan year. • Your HSA is portable even if you change jobs.
Dependent Care Flexible Spending • From age 55 until you enroll in Medicare, you can
Account (DCA) contribute an additional $1,000 annually.
A Dependent Care Flexible Spending Account (DCA) is
designed to set aside a portion of your salary, before taxes, to At age 65 you can use your HSA funds however you choose.
pay for dependent care for children up to age 13, a disabled It is counted as income and taxed without penalty.
dependent of any age or a disabled spouse. To be eligible for Limited Health Care Flexible Spending
this type of account, both you and your spouse (if applicable) Account (LFSA)
must work, be looking for work or be full-time students. If you have a high deductible health plan (HDHP) along
Examples of eligible expenses are daycare, after school care with a health savings account (HSA), you may use a Limited
and elder care. After you have incurred an eligible expense, Health FSA to pay some out-of-pocket expenses until your
you may be reimbursed up to your contribution balance at annual deductible is met. Limited FSA allows you to set aside
the time of the reimbursement request. a portion of your salary, before taxes, to pay for qualiied
• Annual Contribution minimum is $100 vision, dental and/or preventive care expenses. Examples
of eligible expenses are dental visits/treatment, eye exams,
• Annual Contribution maximum is $5,000 per household contact lenses, eyeglasses, immunizations and many others.
• Annual Contribution minimum is $100
• Annual Contribution maximum is $2,750*
* The FSA contribution maximums are subject to change for 2021
2021 Employee Beneits Guide | 7
Health Care Flexible Spending Account (FSA) Health Savings Account (HSA)
A Health Care Flexible Spending Account (FSA) allows you To help offset the cost of medical expenses, you can pair
to set aside a portion of your salary, before taxes, to pay for the HDHP medical plan with a Health Savings Account. This
qualiied medical care expenses. Because that portion of provides you the opportunity to put pre-tax money aside
your income is not taxed, you end up with more money to help pay for your out-of-pocket medical expenses. This
in your pocket. It is designed to reimburse you for out-of- combination gives you ultimate control over how you spend
pocket health care expenses incurred by you or your eligible your health care dollars.
dependents that are not reimbursable through any other
beneit plan. Examples of eligible expenses are deductibles, Beneits of HSA:
copays, prescriptions, vision exams, prescription eyeglasses, • You choose how much to set aside for health expenses
dental expenses and many others. Many over the counter up to IRS maximum.
drugs are now an eligible expense. Your full annual election » $3,600 for single coverage annually
amount for the Health FSA is available at any time during
the plan year, regardless of how much you have contributed » $7,200 for family coverage annually
to date.
• Reduces taxable income – deposits are taken out of your
• Annual Contribution minimum is $100 paycheck before income tax is calculated and withdrawals
for qualiied medical expenses are tax-free.
• Annual Contribution maximum is $2,750*
• Grows with you—the money in the account is yours to
The IRS has a “use or lose” rule which states that you lose any invest and the earnings are tax-free.
leftover balance in your account at the end of the plan year. • Your HSA is portable even if you change jobs.
Dependent Care Flexible Spending • From age 55 until you enroll in Medicare, you can
Account (DCA) contribute an additional $1,000 annually.
A Dependent Care Flexible Spending Account (DCA) is
designed to set aside a portion of your salary, before taxes, to At age 65 you can use your HSA funds however you choose.
pay for dependent care for children up to age 13, a disabled It is counted as income and taxed without penalty.
dependent of any age or a disabled spouse. To be eligible for Limited Health Care Flexible Spending
this type of account, both you and your spouse (if applicable) Account (LFSA)
must work, be looking for work or be full-time students. If you have a high deductible health plan (HDHP) along
Examples of eligible expenses are daycare, after school care with a health savings account (HSA), you may use a Limited
and elder care. After you have incurred an eligible expense, Health FSA to pay some out-of-pocket expenses until your
you may be reimbursed up to your contribution balance at annual deductible is met. Limited FSA allows you to set aside
the time of the reimbursement request. a portion of your salary, before taxes, to pay for qualiied
• Annual Contribution minimum is $100 vision, dental and/or preventive care expenses. Examples
of eligible expenses are dental visits/treatment, eye exams,
• Annual Contribution maximum is $5,000 per household contact lenses, eyeglasses, immunizations and many others.
• Annual Contribution minimum is $100
• Annual Contribution maximum is $2,750*
* The FSA contribution maximums are subject to change for 2021
2021 Employee Beneits Guide | 7
