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 HDHP medical plan. Additionally, Butler will make a lump sum contribution to your HSA account. This amount is pro-rated for employees hired after March 31st.

2024 HSA Contributions

*Your total maximum contribution into the HSA may not exceed the IRS contribution limit for 2024 as shown above.
To be eligible for an HSA you:

• Must be currently enrolled in an HSA-qualified health plan (HDHP)
• 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)

WHAT IS AN FSA? An FSA is a Flexible Spending Account (FSA) that allows you to set aside money from your paycheck before income taxes (Federal, Social Security, Medicare, state, and local taxes, if applicable) are withheld. This money is available to pay for eligible expenses, such as medical deductibles and copayments, prescriptions, dental expenses, eyeglasses, contact lenses and other health-related expenses that are not reimbursed by your health plan. 
HOW DOES IT WORK? You decide how much to contribute to your Health FSA on a plan year basis, up to the maximum allowable amount. Your annual election will be divided by the number of pay periods and deducted evenly on a pre-tax basis from each paycheck throughout the plan year. You must enroll in the FSA each year. Elections do not carry over year-over-year. 
CLAIM FILING AND REIMBURSEMENT Your FSA administrator is WEX. To be reimbursed for your FSA expense, you must have an itemized receipt. To submit claims for reimbursement, simply complete a claim form, include a bill or itemized receipt from the provider, and submit this information for reimbursement.
THINGS TO CONSIDER BEFORE YOU CONTRIBUTE TO AN FSA

• Be sure to fund the account wisely as Health FSAs are subject to a “use it or lose it” rule; however, you may roll-over up to $640 year-over-year. Any funds above this amount will be forfeited.
• You cannot take income tax deductions for expenses you pay with your Health FSA &/or Dependent Care FSA.
• You cannot stop or change contributions to your FSA during the year unless you have a change in family status consistent with your change in contributions.

The 2024 Annual Health FSA Maximum Contributions Limit is $3,200.

Dependent Care Flexible Spending Account (DFSA)

WHAT IS A DEPENDENT CARE FSA? This is a pre-tax benefit account used to pay for eligible expenses for dependents under age 13 or to care for a disabled spouse or dependent that allows you – or you and your spouse – to work. 
DEPENDENT CARE FSA CONTRIBUTION LIMITS Under the Dependent Care FSA, if you are married and file a joint return, or if you file a single or head of household return, the annual IRS limit is $5,000. If you are married and file separate returns, you can each elect $2,500 for the plan year. You and your spouse must be employed, or your spouse must be a full-time student to be eligible to participate in the Dependent Care FSA. 
CLAIMS REIMBURSEMENT Login to your WEX member account, complete the reimbursement form and include appropriate documentation.
THINGS TO CONSIDER BEFORE YOU CONTRIBUTE TO A DEPENDENT CARE FSA

• Be sure to fund the account wisely as funds are “use it or lose it.”
• You must enroll in the dependent care FSA prior to the start of the plan year or during open enrollment (unless you experience certain qualifying life events).
• You may have a Health Savings Account (HSA) and a Dependent Care FSA.
• The following contribution limits apply based on tax filing status:
  • Single: $5,000 maximum
  • Married filing separate: $2,500 maximum
  • Married filing jointly: $5,000 maximum
    • Total of any contributions by both towards the maximum
    • Example: Spouse 1 @ $1,000, Spouse 2 @ $4,000 
• Save your receipts for each eligible expense you submit for reimbursement. Receipts should include:
  • Name (who received service)
  • Provider name (provider that delivered service)
  • Date(s) of service
  • Type of service
  • Cost of service

It is important to understand how Medicare may impact your HAS before electing a contribution amount or even enrolling in the HDHP 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.