SPENDING ACCOUNTS
Health Savings Account (HSA) with WEX
For those who enroll in HL’s Cigna HDHP $2,000 / $4,000 or Cigna HDHP $3,000 / $6,000 Medical Plan, you can elect to participate in the Health Savings Account. HSAs allow you to set aside funds on a pre-tax basis that you can then use for qualified medical, dental, and vision expenses.
HEALTH SAVINGS ACCOUNT (HSA)
How much can you contribute to your HSA in 2024?
The annual contribution limits for 2024 are the following:
- $4,150 for individual coverage
- $8,300 for family coverage
- Individuals 55 years of age or older by December 31st, 2024 may defer an additional $1,000 for the year
What happens to your unused HSA dollars at the end of the Plan Year?
Your unused money at the end of each year will roll over and accumulate tax-free, as does the interest on the account. Those with a balance of $1,000 or more can invest HSA funds in a selection of investment options for additional pre-tax account earnings.
Additional HSA Eligibility Details
As mentioned above, you must be enrolled in HL’s HDHP Plans to participate but it’s important to know other eligibility requirements. You are unable to participate if you are:
- Covered by any other health plan that is not a Qualified High Deductible Health Plan.
- Receiving any benefits from Medicare (including Medicare Part A).
- Covered under a spouse’s HRA or FSA.
Spending Accounts with WEX
As part of the benefits package, you also have the option to enroll in Flexible Spending Accounts (FSA) such as Health Care, Dependent Care & Commuter FSA. FSAs allow you to set aside funds on a pre-tax basis that you can then use for qualified expenses.
HEALTH CARE & DEPENDENT CARE FSAs
A Health Care FSA is a pre-tax benefit account used to pay for eligible medical, dental, and vision care expenses for those enrolled in a HDHP Medical Plan. You can elect up to the maximum of $3,200 to be deducted pre-tax for the plan year. The rollover limit is $640 for 2024.
A Dependent Care FSA is a separate pre-tax benefit account that can be used to pay for eligible childcare expenses (daycare, nursery school, summer camp, etc.) You can contribute up to $5,000 into this account for the plan year. These funds are available as they are contributed via payroll contributions.
What happens to your unused FSA dollars at the end of the Plan Year?
Health Care and Dependent Care FSAs have a 'Use it or Lose it' rule, meaning that any unused funds in the account at the end of the year will be forfeited to the IRS with the exception of any allowed rollover amounts.
COMMUTER & TRANSIT SPENDING ACCOUNT
Commuter FSA is a pre-tax benefit account used to pay for eligible expenses to travel to and from work. You can elect to contribute up to $315 per month to your Transit or Parking account for 2024. Funds in this account roll over from year to year.
What is considered an eligible Commuter expense?
You can use your WEX Commuter Spending Account for transportation costs to and from work associated with:
- Public Transportation
- Parking
- Ridesharing
- Bike Maintenance & Repairs
The Commuter FSA does not cover the cost of gas to drive to and from the office.
