Tax Free Savings: HSA & FSA Accounts
Health Savings Accounts (HSA's)
Employees enrolled in the HSA/Open Access POS healthcare plan may open a Health Savings Account (HSA), a tax-free account that can be used to pay for eligible healthcare expenses now and in the future. USG will match employee contributions to their HSA up to $375 for individual coverage or $750 for family coverage. The HSA account can be used to pay for eligible out-of-pocket healthcare expenses including hospitalization, physician care, prescription drugs, dental, and vision.
U.S. Bank Health Savings Account (HSA)
U.S. Bank - http://www.mycdh.usbank.com
Flexible Spending Accounts (FSA’s)
Using Flexible Spending Accounts is one of the easiest ways to reduce healthcare and dependent care costs. These accounts allow employees to use pre-tax dollars to pay for eligible healthcare and dependent care expenses. Once the annual amount is elected, the contribution cannot be changed throughout the year unless the employee experiences a qualified status change. These funds are “use it or lose it” and will not roll over to the next calendar year.
There are three types of Flexible Spending Accounts available to VSU employees:
- The Healthcare FSA is to be used for eligible healthcare, prescription drug, dental or vision expenses. The annual maximum contribution is $2,500.
- The Dependent Care FSA is to be used for eligible dependent care expenses, including day care and summer camps for children under age 13 and care for an elderly parent. The annual maximum contribution is $5,000.
- The Limited Purpose FSA is available to employees with an HSA who are enrolled in the HSA Open Access POS healthcare plan. This plan is to be used in addition to an HSA to pay for dental and vision expenses only. The annual maximum contribution is $2,500.