Flexible Spending/Health Savings
Health Savings Account (HSA)
A Health Savings Account (HSA) is an individually owned, tax-advantaged checking account that gives you the ability to save for future medical expenses or pay current ones. An HSA allows you to put money away and use the funds for qualified medical expenses, like deductibles, copayments, coinsurance, and more. You’re eligible to contribute to an HSA when you’re covered by Butler’s CDHD medical plan. Additionally, Butler will make a lump sum contribution to your HSA account. This amount is pro-rated for employees hired after March 1st.
The 2023 maximum amount contributed to an HSA, including Butler contributions are:
- Individual- $3,850
- Family- $7,750
- If you are 55 or older, you can contribute an additional $1,000 in catch-up funds
Butler Contributions 2023
- Individual- $750
- Family- $1,500
Unused funds rollover year-to-year. UMB administers Butler’s HSA accounts.
To be eligible for an HSA you:
- Must be currently enrolled in an HSA-qualified health plan (CDHD)
- May not be enrolled in any other non-HSA qualified health plan
- May not be claimed as a dependent on another person’s tax return
- May not be enrolled in Medicare, Medicaid or Tricare
- Must not have used VA medical benefits in the past 3 months, with the exception of preventative services or treatment for a service-connected disability
To open your HSA account:
- Go to hsa.umb.com
- Click on Enroll for a New HSA
- Enter THA0001-143674 in the Enrollment Verification #
- Click on Open My Account Now
For a list of IRS-approved qualified expenses, please review Publication 502.
Medical Flexible Spending Account (FSA)
An FSA is a tax-advantaged savings account that gives you the ability pay for current year medical, prescription, dental or vision expenses. Funds are available immediately after your account is opened.
The maximum contribution for 2023 is $3,050. You will have until March 31, 2024, to submit claims for costs incurred through December 31, 2023. Unused funds $610 or less will rollover, after April 1, 2024, for use during that plan year. Unused funds over $610 will be forfeited. WEX Health administers Butler’s FSA accounts.
For a list of IRS-approved qualified expenses, please review Publication 502.
Dependent Care Flexible Spending Account (DFSA)
A DFSA is a tax-advantaged savings account for day care expenses for dependent child under age 13 or a physically or mentally disabled dependent of any age who spends 8+ hours per day in your home. This is a reimbursement account, so you can only recoup the money you have paid into the account at the time you submit reimbursement for funds.
The maximum contribution for 2023 is $5,000 or $2,500 if married and filing separately. You will have until March 31, 2024, to submit claims for costs incurred through December 31, 2023. Unused funds will be forfeited. WEX Health administers Butler’s DFSA accounts.
It is important to understand how Medicare may impact your HAS before electing a contribution amount or even enrolling in the CDHD medical plan. Once you are enrolled in Medicare, you are not legally allowed to contribute to your HSA.
If you met the requirements to qualify for Medicare part A but have not yet applied, you may continue to contribute to your HSA past age 65 and postpone applying for Social Security and Medicare until you stop working. There is no penalty for this delay if you maintain your current health coverage.
If you are entitled to Medicare because you signed up for Medicare Part A at age 65 or later and have applied for Social Security Benefits you cannot continue to contribute to an HSA. You can continue to withdraw any remaining funds in your account.
If you are entitled to Medicare because you signed up for Medicare Part A at age 65 or later but have not yet applied for Social Security Benefits, you can withdraw your application for Part A. There are no penalties, and you are free to reapply for Part A at a future date. This will allow you to continue to contribute to the HSA until you decide to reapply for Part A.
If you do apply later for Social Security or Medicare benefits, the coverage will be retroactively applied up to 6 months depending on how long your benefits were delayed. This may affect how much you can contribute to your HSA.
If you have applied for, or are receiving, Social Security Benefits you are automatically entitled to Part A and you cannot continue to contribute to an HSA account. You can continue to withdraw any remaining funds in your account.