Health Savings & Flexible Spending Accounts

Stay on top of rising medical expenses by paying for them with pre-tax dollars.

Saving money pre-tax to pay for medical expenses is one of the best tricks to keeping your costs down. No matter which medical plan you have, there’s an option for you to stash away some tax-advantaged funds for expenses like copays, coinsurance, prescription drugs, and more.

In general, deciding to enroll in an HSA or FSA is smart. Knowing which one to select and how to get the most out of it will take some education to decide which is the best fit for you. There are several key differences between an HSA and an FSA, learn more about these accounts below to choose the one that’s the best fit for your needs.

 

Watch a video about HSAs

Watch a video about FSAs

Benefit Advocate

Call: (925) 658-1581
Email: servicenow@alliant.com

Optum Bank

Health Savings Account

Policy/group #: N/A
Call: (800) 791-9361
Email: hsagroup@optumbank.com
Website: optumbank.com

Navia Benefit Solutions

Flexible Savings Account

Employer code: EIE
Call: (800) 669-3539
Website: naviabenefits.com

Health Savings Account (HSA)

Generally, this is available to employees and their dependents in the United HealthCare High Deductible Health Plan. Read more about HSA eligibility here.

Features

  • ServiceNow gets your HSA started with a contribution of up to $1,000 (for individuals) or $2,000 (for you and your dependents) each year. This amount is prorated for employees hired after January 1.
  • It’s triple tax-advantaged: You don’t pay federal taxes on the money you set aside, your balance earns interest tax-free, and you won’t pay taxes on withdrawals (for qualified expenses).
  • Your funds never expire and are yours to keep even if you leave the company.
  • You can adjust your payroll contribution at any time during the year.
  • You can invest your HSA and earn interest on your balance.

Restrictions

  • You must spend your funds on qualified medical, dental and vision expenses. See what qualifies as an eligible expense and what does not.
  • The 2018 maximum allowed contribution to your HSA is $3,450 for individual coverage and $6,900 for family coverage (this limit includes ServiceNow’s contribution to your HSA). An additional $1,000 is allowed at age 55+.
  • If you have an HSA, you cannot also have a general purpose FSA. However, you can have an HSA and a limited FSA covering just vision and dental. You may also use the limited FSA for medical and prescription expenses once you have satisfied your annual medical deductible.

Flexible Spending Account (FSA)

 This is available to you no matter what your health plan.

Features

  • There are 3 different types of FSAs: one for general purpose healthcare (medical, dental and vision), limited purpose healthcare (dental and vision only), and daycare.
  • Double tax-advantaged: You don’t pay federal taxes on the money you set aside, and you won’t pay taxes on withdrawals (for qualified expenses)
  • You must carefully project your annual spending because you can only roll over $500 of unused funds from the healthcare FSA into the next year. There is no rollover for the Daycare FSA.
  • Your enrollment is binding, which means you cannot change your contribution throughout the year unless you have a qualified life event.

Restrictions

  • You must spend your funds on qualified medical, dental and vision or daycare expenses. See what qualifies as an eligible expense and what does not.
  • The 2018 maximum allowed contribution to your general purpose or limited purpose healthcare FSA is $2,650. The maximum for the daycare FSA is $5,000 per married couple filing jointly, or $2,500 if married and filing separately.
  • If you have an HSA, you cannot also have a general purpose healthcare FSA. However, you can have an HSA and a limited FSA covering just vision and dental. You may also use the limited FSA for medical and prescription expenses once you have satisfied your annual medical deductible.

Other Resources

We know it can be complicated. If you want to learn more about how HSAs and FSAs work, take a look at these resources:

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