HEALTH SAVINGS AND FLEXIBLE SPENDING ACCOUNTS
HEALTH SAVINGS ACCOUNT (HSA)
- A Health Savings Account, also known as an HSA, is a personal bank account that is yours to keep.
- It’s portable. Even if you change jobs, you get to keep your HSA.
- You can use your HSA to pay for qualified medical expenses.
- It allows for an improved retirement account. Funds roll over at the end of each year and accumulate tax-free, as does the interest on the account.
- Once you reach the age of 55, you are allowed to make additional “catch-up” contributions up to $1,000 to your HSA until age 65.
- Please note if you are enrolled in Medicare, you are not eligible to contribute to an HSA.
2025 ANNUAL CONTRIBUTION LIMITS $4,300 for Individual / $8,550 for Family Catch-Up Contributions: $1,000/year (HSA owners 55 and older)
Please Note, the HSA is only available to those employees who enroll in the Qualified High Deductible Health Plan. Employees who enroll in this plan as a single will receive $750 into their HSA from Dunwoody Village. Those enrolled with dependents will receive $1,500 of funding in their HSA accounts.
HOW DOES A HEALTH SAVINGS ACCOUNT WORK?
Present your Meritain ID Card
Complete your visit with provider.
Provider will submit claim for processing visit
Meritain will adjust the claim and prepare the EOB (Explanation of Benefits)
You will receive an EOB and invoice from your provider
Pay the patient responsibilty from your HSA account
FLEXIBLE SPENDING ACCOUNTS (FSA)
Dunwoody Village understands the value of your dollar and most importantly, how to stretch it. As part of the benefits package, we offer Flexible Spending Accounts (FSA) to help you stretch your dollars. FSAs allow you to set aside funds on a pre-tax basis that you can then use for qualified expenses.
Health Care FSA
A Health Care FSA is a pre-tax benefit account used to pay for eligible medical, dental, and vision care expenses. It’s a smart, simple way to save money while keeping you and your family healthy and protected. When you make an election, this contribution is automatically withheld from your paycheck, so it does not count as income for certain tax purposes. You can elect up to the maximum of $3,300 for the plan year. These funds are available to you at the beginning of the plan year.
FSA's do have a 'Use it or Lose it Rule,' meaning any remaining funds at the end of the plan year (December 31st) will be forfeit. However, Dunwoody allows employees to carry over $660 into the next plan year.
You can use your FSA for:
- Prescriptions
- Over-the-counter medicine
- Glasses, contacts, and LASIK
- Dental services and procedures
- Copays and deductibles
- Flu shots
- and more!
Dependent Care FSA
A Dependent Care FSA is a pre-tax benefit account used to pay for eligible dependent care expenses for your children under the age of 13. If you are married, your spouse must also be working, activley looking for work, be a full-time student or disabled. Like the health care FSA, when you make an election, this contribution is automatically withheld from your paycheck, so it does not count as income for certain tax purposes. You can elect up to the maximum of $5,000 for the plan year. These funds are available as they are contributed via payroll contributions.
DCFSA's do have a 'Use it or Lose it Rule,' meaning any remaining funds at the end of the plan year (December 31st) will be forfeit. Unlike the health care FSA, there is no rollover feature.
You can use your DCFSA for:
- Licensed nursery schools
- Qualified childcare centers
- Adult day care facilities
- After school programs
- Summer camps for dependent children under age 13
- Preschool tuition
HOW DOES A FLEXIBLE SPENDING ACCOUNT (FSA) WORK?
Annual Income
Unreimbursed Expenses
Annual FSA Contribution
Taxable Salary
Tax Deduction (est. 35%)
Net Take-Home Pay
ANNUAL SAVINGS
WITHOUT FSA
$40,000
$2,000
$-
$40,000
$14,000
$24,000
$0
WITH FSA
$40,000
$-
$2,000
$38,000
($13,300)
$24,700
$700
