What is it ?
Plan Feature
How do I get it ?
APPENDIX A - Educational Information HSA / FSA Comparison Chart
Health Savings Bank Acct with HDHP Medical
It ’ s a personal bank account to help you save and pay for covered health care services and qualified medical expenses .
You must sign up for a highdeductible health plan that meets a deductible amount set by the IRS . You also must meet other IRS guidelines to be eligible to have it . Learn about these at irs . gov .
Limited Scope FSA with HDHP Medical
It ’ s an account to help you pay for covered dental and vision services and eligible dental and vision expenses .
You can sign up for a health care Limited Scope FSA if it is offered by your employer and you are also enrolled in the City ’ s High Deductible Health Plan .
Health Care FSA with EPO Medical
It ’ s an account to help you pay for covered health care services and eligible medical expenses .
You can sign up for a health care FSA if it is offered by your employer . You do not need to sign up for a City health plan .
Who owns it ? |
You do . |
Your employer , but it ’ s your money . |
Your employer , but it ’ s your money . |
Who puts the money in it ? |
You . Your employer , family , and others can put money into it if they |
You . |
You . |
|
choose . |
|
|
How is money put in it ?
Is there a limit on how much I can put in it ?
Can I cash it out at any point ?
Can I keep it if I leave my employer ? What happens to the money ? Do I have to pay taxes on it ?
You can make deposits like you do with other personal bank accounts . Your employer and family can also put money into the account . Your employer may allow you to deposit money straight from your paycheck , before the money is taxed .
Yes . The IRS sets a limit on how much you can put into it each year . You can usually find the limits in your health plan documents and at irs . gov . While there are no annual limits , there is no limit to how much you can save over time .
Yes . But if you cash it out and do not use the money for qualified medical expenses , you will have to pay taxes on it . And you may also have to pay a 20 % tax penalty .
Yes . You own the account .
No . You don ’ t have to pay federal or , in most instances , state income taxes on :
• Deposits you or others make to an HSA
• Money you spend from an HSA on qualified medical expenses
• Interest earned from an HSA If you put money into an HSA using pre-tax payroll deposits through your employer , you don ’ t have to pay Social Security taxes on it either .
Your employer will take money out of each paycheck , before taxes , and put it into the account .
Yes . The IRS sets a limit on how much you can put into it each year . You can usually find the limits in your health plan documents and at irs . gov . Your employer can decide what the annual limit will be , but it can ’ t be more than the IRS limit .
No . No .
No . Your employer keeps the money .
No . You don ’ t have to pay federal , state and Social Security taxes on this money . You also don ’ t have to pay federal income taxes on any money that is reimbursed to you .
Your employer will take money out of each paycheck , before taxes , and put it into the account .
Yes . The IRS sets a limit on how much you can put into it each year . You can usually find the limits in your health plan documents and at irs . gov . Your employer can decide what the annual limit will be , but it can ’ t be more than the IRS limit .
No . Your employer keeps the money .
No . You don ’ t have to pay federal , state and Social Security taxes on this money . You also don ’ t have to pay federal income taxes on any money that is reimbursed to you .
27