HSA You must be enrolled in a high-deductible health plan (HDHP) in order to enroll in an HSA. You’re not eligible for an HSA if you’re claimed as a dependent on someone else’s taxes, covered by another plan that conflicts with the HDHP, or if you or your spouse are contributing to a medical FSA. An HSA is a benefit that allows you to choose how much of your paycheck you’d like to set aside, before taxes are taken out, for healthcare expenses or use as a retirement savings tool. This plan offers tax savings that a 401(k) and IRA don’t, making it a powerful option for diversifying your retirement portfolio. Think of your HSA as a personal savings account. Any un- spent money in your HSA remains yours, allowing you to grow your balance over time. Funds are available to use for eligible purchases once that money has been deposited. When you reach age 65, you can withdraw money (with- out penalty) and use it for anything, including non-health- care expenses. The HSA’s unique, triple-tax savings means the money you contribute, earnings from investments and withdrawals for eligible expenses, are all tax-free, making it a savvy savings and retirement tool. You must be enrolled in a high-deductible health plan (HDHP) in order to enroll in an HSA. You’re not eligible for an HSA if you’re claimed as a dependent on someone else’s taxes, covered by another plan that conflicts with the HDHP, or if you or your spouse are contributing to a medical FSA.
FSA A medical FSA is a benefit that allows you to choose how much of your paycheck you’d like to set aside, before tax- es are taken out, for healthcare expenses. This saves you money by reducing your taxable income. Your funds are available on Day 1, so schedule that surgery, buy those eyeglasses or finally get those braces! All of your FSA funds are available to spend right away. Use your benefits debit card at the point of purchase. Think of it like a discount on healthcare expenses at stores such as Amazon, Target, CVS, Walmart, Walgreens and more. Dollars you contribute are taken out of your pay- check before tax. You are eligible to enroll if you have health insurance through Providence and if you or your spouse aren’t ac- tively enrolled and contributing to an HSA. When can I opt in to this benefit? You can take advantage of an FSA or HSA during Open Enrollment. Speak with your HR manager for more information.
The Providence Call 7
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