SPENDING ACCOUNTS
Graham provides the opportunity to participate in several spending accounts. The flexible spending and dependent care account are administered by Ameriflex. Since the funds are pre-tax, every dollar you contribute earns you more in tax savings!
HEALTH SAVINGS ACCOUNT (HSA)
- 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.
2020 ANNUAL CONTRIBUTION LIMITS $3,550 for Individual / $7,100 for Family Catch-Up Contributions: $1,000/year (HSA owners 55 and older)
HOW IT WORKS
Present your Meritain 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 and invoice from your provider
Pay the patient responsibilty from your HSA account
OTHER SPENDING ACCOUNTS
FLEXIBLE SPENDING ACCOUNT
Eligible expenses include medical, dental and vision expenses and some over the counter items. You are able to purchase eligible items online, visit the FSA Store: https://fsastore.com. You can elect up to $2,750. Up to $550 can be carried over into the new plan year (2021-2022).
For the most recent update of eligible expenses, and for an in-depth cost comparison, click below.
DEPENDENT CARE ACCOUNT
If you have a child (under the age of 13) or disabled loved one, you might rely on services like day care or home aide to be able to go to work. Lessen the financial burden by enrolling in this account.
Eligible expenses include day care, babysitting, before and after school programs. You are able to elect up $5,000. Please note this is a use-it-or-lose-it election, which means you will forfeit any unused funds remaining in your account when the next plan year begins on July 1, 2021.
COMMUTER REIMBURSEMENT ACCOUNT
Dedicate up to $270 per month of your pre-tax salary for the purchase of transit tickets, passes, and tokens. RideEco allows you to order RideEco vouchers, the RideECO stored Value Card, PATCO Freedom Card loads and SEPTA fare materials. Select any combination up to the $270 monthly allowance.
Receive your vouchers or fares at the end of each month-in time to buy your monthly pass, tickets or tokens for next month, or get your SVC or PATCO FREEDON card reloaded at the end of each month.
To enroll, visit www.RideECOSelect.com or call 888-235-9223.
ADOPTION ASSISTANCE PROGRAM
You are able to have up to $14,080 annually withheld from your paycheck pre-tax for a qualified adoption expenses in 2020. This is a calendar year plan/benefit. Please reach out to Human Resources for more information and/or if you would like to participate in this program.
How does a Flexible Spending Account (FSA) work?
Here’s an example of how a participant can increase their take-home pay by participating in a FSA:
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
