Contributing to a Spending Account Can Save You Money

Making the most of your money is important. And to help you, we offer a variety of tax-advantaged spending accounts through HealthEquity. No matter which you choose, you can save money on eligible health care and dependent day care expenses.

Spending accounts allow you to set aside money on a before-tax basis, up to IRS limits. When you enroll, you elect the amount you want deducted equally from each paycheck throughout the year. Because the money is before-tax, you pay less in taxes on each paycheck.

You can find a list of eligible expenses as determined by the IRS in Publication 502 and Publication 503.

You can enroll in these plans during our fall Annual Enrollment period. Learn about them now so you’re ready to elect the one right for you in October.

Types of spending accounts

Health Savings Account – You have access to a health savings account (HSA) if you enroll in our High Deductible Health Plan with Health Savings Account (HDHP/HSA). We contribute to your account ($600 individual/$1,200 family). You also can contribute to your account on a before-tax basis up to IRS limits ($3,500 individual/$7,000 family). Limits include our employer contribution and any wellness dollars earned within the calendar year.

You have access to your money once it’s deposited into the account. You can use the money to pay for eligible health care expenses now or save it for future expenses, including retirement. The money in your account is always yours, and rolls over from year to year – you never lose it.

Health Care Flexible Spending Account (FSA) –You can choose to participate in this type of account if you are not enrolled in our HDHP/HSA. You can set aside before-tax money up to the IRS limit of $2,650 to pay for eligible medical, dental and vision expenses. You have access to your money the first day of the plan year. This is a use-it-or-lose-it account – you will forfeit any funds not used by March 15 of the following year.

Limited Purpose Health Care FSA – If you enroll in the HDHP/HSA, you can also participate in a limited purpose health care FSA. You can set aside up to $2,650 on a before-tax basis, up to the IRS limit. We would encourage you to fund your HSA first, and only fund your limited purpose health care FSA if you’ll have expenses that exceed the amount you can contribute to the HSA.

  • Access your money on the first day of the plan year
  • Use funds immediately to pay for eligible dental and vision services
  • Use funds for eligible medical expenses only after you meet your HDHP/HSA plan deductible

This is a use-it-or-lose-it account – you will forfeit any funds not used by March 15 of the following year.

Health Incentive Account – When you take part in the Wellness Program, you can earn incentive dollars for making healthy choices. If not enrolled in the High Deductible Health Plan, you may choose to have your incentive dollars deposited into a health incentive account. You can use this money to help pay for eligible health care expenses. The money in your account rolls over year-to-year as long as you’re enrolled in our medical plan.

Health Care Assistance Program – The Health Care Assistance Program (HCAP) provides money to full-time employees depending on your household income and family size – you could receive up to $3,500. You choose how to use the money to pay for medical care, including deductibles, emergency room copayments and medical supplies. Information will be sent to you in late summer if you’re eligible for this option.

Dependent Day Care FSA – When you enroll in the dependent day care FSA, you can set aside up to $5,000 ($2,500 if married and filing separately or are a highly compensated employee) in before-tax dollars annually. Per IRS guidelines, you can use the money in your account to help pay for eligible dependent day care expenses for dependent children under age 13 or dependents of any age who are unable to care for themselves. Eligible expenses can include day care and before-school/after-school care costs.

Convenience of one debit card for multiple accounts
You’ll receive a HealthEquity debit card to use with your spending account(s). The HSA has its own debit card but because some spending accounts share the same debit card and funds either roll over year-after-year or are forfeited at the end of the year, HealthEquity applies expenses to your spending accounts in the following order:

  • Health care assistance plan (if applicable)
  • Health care FSA
  • Health incentive account (if applicable)

If you have any questions about spending account(s) please contact HealthEquity at 866-212-4634. HealthEquity Customer Service representatives are available every hour of every day to assist you.