Tax Advantage Accounts

Lower Your Taxable Income

You have access to various pre-tax accounts through PayFlex. With a tax advantage account, you can use tax-free money and lower your taxable income. The following accounts are designed to help you pay out-of-pocket health care and dependent care expenses on a pre-tax basis:

 

Exploring your benefits options and deciding how to maximize your health care choices and associated benefits costs are vital to your health and healthy financial future. That’s why Foundations offers a selection of tax-advantaged choices for you and your family.

 

Review the features and benefits of each account to determine which combination is right for your personal situation.

 

Highlights of Tax Advantage Accounts

Tax Advantage Accounts

Medical Coverage

Features

Health Savings Account (HSA)

Consumer Choice PPO
  • Contribute through payroll deduction in addition to your employer’s premium rebate contribution. You may also make personal, after-tax contributions and file for an income tax deduction
  • Maximum 2012 contribution is $3,100 for individual and $6,250 for family (this includes premium rebates from your employer); Catch-up HSA contribution for age 55 and older is $1,000
  • Use pre-tax contributions now and/or save and invest for future health care expenses. You will earn interest on your cash account and once you have $1,000 or more in your account, you can invest in mutual funds
  • Your HSA is portable and belongs to you
  • There is no “use it or lose it” rule; funds can grow year after year
  • You can also enroll in a Dependent Care FSA or Limited Purpose FSA
  • For a comprehensive list of eligible expenses visit www.irs.gov (Publication 502)

Limited Purpose Flexible Spending Account (FSA)

Consumer Choice PPO
  • Provides pre-tax savings limited to dental and vision expenses such as orthodontia, deductibles, coinsurance, eye examinations, prescription glasses and more
  • Visit www.irs.gov to review eligible dental and vision expenses
  • Combines with the Consumer Choice PPO and HSA programs only
  • $2,500 plan year maximum
  • “Use it or lose it” rule applies
  • Pre-tax payroll deductions are automatic
  • You can also enroll in a Dependent Care FSA

Health Care Flexible Spending Account (FSA)

Premium PPO
Standard PPO
Other Coverage
(i.e., HMO coverage or coverage through a spouse.)
  • For a comprehensive list of eligible expenses visit
    www.irs.gov (Publication 502)
  • $5,000 plan year maximum
  • “Use it or Lose it” rule applies
  • Pre-tax payroll deductions are automatic
  • Not available to HSA participants

Dependent Care Flexible Spending Account (FSA)

NA
  • For a comprehensive list of eligible expenses visit
    www.irs.gov (Publication 502)
  • $5,000 plan year maximum
  • “Use it or Lose it” rule applies
  • Pre-tax payroll deductions are automatic