Page 6 - Nortek Open Enrollment
P. 6
New Hire
Guide
When it comes to paying your medical bills, you decide whether you
The Accounts want to use your accumulated HSA funds—or you can simply pay
Each health plan option is paired with a out of your pocket. If you use HSA funds to meet coinsurance and
special health account to help you save deductible obligations, no taxes will be applied.
and pay for eligible healthcare expenses. While many inancial institutions offer HSA accounts, Nortek
participants in the HSA plan will be invited to open HSA accounts
HSA Allows You to Save for at Optum Bank, UnitedHealthcare’s HSA bank. By using Optum
Your Future Bank, you can arrange convenient payroll deductions using pre-tax
An important distinguishing difference dollars.
in the two plans is the HSA has a
portable inancial savings account which The Health eSaver is an easy-access account to pay expenses, with
offers signiicant tax advantages. competitive interest rates, modest fees, and the option to invest in
mutual funds once your balance reaches $2,000. The monthly fee is
An HSA account is a personal bank $3 for balances less than $5,000.
account you own. You build up your
account with voluntary pre-tax payroll Optum Bank will issue all Nortek HSA participants MasterCard
deductions up to the IRS limits for 2015 debit cards to access their account dollars during the plan year. Once
($3,350 for single coverage, $6,650 for enrolled in the HSA qualiied medical plan, you will receive an email
family coverage) (note that if you are from your local HR department providing instructions on how to
over the age of 55 or turn 55 during open up an HSA with Optum Bank. Embedded in the email will be
2015, the IRS allows you to contribute a link to open up the account.
an additional $1,000—beyond the
limits named above—as a “catch-up” HRA Accounts More Restricted
contribution to your HSA account). If The HRA account does not allow for voluntary contributions.
enrolling mid-year (outside of annual However, any accumulated funds in the HRA account carry over
enrollment), your annual contribution year to year, just like the HSA accounts. An HRA account is not
will be prorated. You are eligible to portable. If you are in the HRA and leave the company, any money
contribute 1/12th of the annual HSA in your account stays with the company.
contribution amount for each eligible
month. To contribute the maximum Remember: an HSA account is all yours. You keep whatever is in the
allowable, you must be enrolled for account, even if you leave Nortek, and the money rolls over, year after
year: there is no “use it or lose it” rule.
a full year (January—December) or
if enrolled by December 1 of the To learn more about Optum Bank and how HSA accounts earn interest and
can be invested, visit www.optumbank.com.
tax year and also remain on the plan You must remain enrolled in the HSA plan for 12 months from your initial
through December 31 of the following enrollment or your HSA contributions will be subject to tax implications.
You will have the opportunity to change during the annual enrollment
year. Most states also allow HSA period following 12 months of coverage.
contributions to be free from state tax For more information, please see IRS Publication 969, consult a tax
as well. advisor, or both. You are responsible for monitoring and adjusting your
contributions throughout the year to ensure compliance with federal laws
and limitations that apply to HSAs.
6
Guide
When it comes to paying your medical bills, you decide whether you
The Accounts want to use your accumulated HSA funds—or you can simply pay
Each health plan option is paired with a out of your pocket. If you use HSA funds to meet coinsurance and
special health account to help you save deductible obligations, no taxes will be applied.
and pay for eligible healthcare expenses. While many inancial institutions offer HSA accounts, Nortek
participants in the HSA plan will be invited to open HSA accounts
HSA Allows You to Save for at Optum Bank, UnitedHealthcare’s HSA bank. By using Optum
Your Future Bank, you can arrange convenient payroll deductions using pre-tax
An important distinguishing difference dollars.
in the two plans is the HSA has a
portable inancial savings account which The Health eSaver is an easy-access account to pay expenses, with
offers signiicant tax advantages. competitive interest rates, modest fees, and the option to invest in
mutual funds once your balance reaches $2,000. The monthly fee is
An HSA account is a personal bank $3 for balances less than $5,000.
account you own. You build up your
account with voluntary pre-tax payroll Optum Bank will issue all Nortek HSA participants MasterCard
deductions up to the IRS limits for 2015 debit cards to access their account dollars during the plan year. Once
($3,350 for single coverage, $6,650 for enrolled in the HSA qualiied medical plan, you will receive an email
family coverage) (note that if you are from your local HR department providing instructions on how to
over the age of 55 or turn 55 during open up an HSA with Optum Bank. Embedded in the email will be
2015, the IRS allows you to contribute a link to open up the account.
an additional $1,000—beyond the
limits named above—as a “catch-up” HRA Accounts More Restricted
contribution to your HSA account). If The HRA account does not allow for voluntary contributions.
enrolling mid-year (outside of annual However, any accumulated funds in the HRA account carry over
enrollment), your annual contribution year to year, just like the HSA accounts. An HRA account is not
will be prorated. You are eligible to portable. If you are in the HRA and leave the company, any money
contribute 1/12th of the annual HSA in your account stays with the company.
contribution amount for each eligible
month. To contribute the maximum Remember: an HSA account is all yours. You keep whatever is in the
allowable, you must be enrolled for account, even if you leave Nortek, and the money rolls over, year after
year: there is no “use it or lose it” rule.
a full year (January—December) or
if enrolled by December 1 of the To learn more about Optum Bank and how HSA accounts earn interest and
can be invested, visit www.optumbank.com.
tax year and also remain on the plan You must remain enrolled in the HSA plan for 12 months from your initial
through December 31 of the following enrollment or your HSA contributions will be subject to tax implications.
You will have the opportunity to change during the annual enrollment
year. Most states also allow HSA period following 12 months of coverage.
contributions to be free from state tax For more information, please see IRS Publication 969, consult a tax
as well. advisor, or both. You are responsible for monitoring and adjusting your
contributions throughout the year to ensure compliance with federal laws
and limitations that apply to HSAs.
6
