Health savings accounts? Everyone has time for that
Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) are acronyms worth getting to know. These accounts offer you the opportunity to put aside money on a pre-tax basis to use for health care needs or dependent care needs for the year.
HSAs are part of the Purdue Health Plan Plus HSA 1 and Purdue Health Plan Plus HSA 2. However, the limited purpose health care flexible spending account is available to those enrolled in Purdue Health Plan Plus HSA 1 or Purdue Health Plan Plus HSA 2 plans.
Let’s take a look at how an FSA and / or HSA might work for you:
Health Care Savings Accounts: FSA and HSA
The interactive health care account tool provided through PayFlex – the company that manages Purdue’s HSA and FSA accounts – is a great way to see how your account can work for you.
The PayFlex tool walks you through how health care accounts work. Pete the pig asks you a variety of questions to help him help you learn more about your respective FSA or HSA and how much you should set aside in your account.
Once you’ve had a chance to use the interactive tool, there are additional resources at your fingertips.
If you have an HSA or are thinking of participating in one for 2016, the interactive HSA guide is a good place to start.
“The HSA interactive guide is available to answer questions you may have about whether or not you are eligible for using an HSA, and what expenses are eligible within your family under the HSA,” explained Eva Nodine, director of benefits in Human Resources. “This tool is especially helpful for employees who have spouses on employer plans and are coordinating what accounts are available to them, and also for those individuals who are 65 and over or will turn 65 during the 2016 calendar year. Special rules apply to these groups in order to comply with IRS Regulations. The tool helps simplify this complicated topic.”
The Frequently Asked Questions section on the Benefits website has information you should review. The information is designed to give you a basic concept of how medical plans with HSAs function and will be helpful to you as you decide if you should set aside money and/or how much money to set aside.
The IRS has set limits on how much can be contributed to your HSA each calendar year. The annual limits include both Purdue's contributions and your own contributions. It's your responsibility to be sure your combined contributions do not exceed IRS limits. For 2016, an individual can have HSA contributions up to $3,350, and a family can have HSA contributions up to $6,750.
If you are age 55 or older, you can also make an additional “catch-up” contribution of $1,000 on an annual basis. If you are turning age 55 at any time during the plan year, you may still make the full catch-up contribution.
For those who possess the FSA, you’re in Iuck, too. The Flexible Spending Accounts web page offers you information on standard health care FSAs, limited purpose health care FSAs as well as dependent care FSA details.
If you have additional questions, please contact Human Resources at 49-42222, firstname.lastname@example.org or request assistance through the HRHelp portal.