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 funds for expenses like co-pays, cost-shares, prescription drugs, and more.

So which one is right for you?

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.
  • 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.

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 into 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 (medical, dental and vision), limited purpose (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 medical 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 into your general purpose or limited purpose 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 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: