Pay for eligible expenses with pre-tax dollars
Saving money pre-tax to pay for medical expenses is one of the best tricks to keeping your costs down. No matter which medical plan you have, there’s an option for you to stash away some funds for expenses like co-pays, cost-shares, prescription drugs, and more, with a Health Savings Account (HSA) or Flexible Spending Accounts (FSAs).
So which one is right for you? There are some important rules and features to know about before you choose. Learn more about each option to see which one is the best match.
There are some important rules to know about HSA eligibility:
- You cannot be covered by any other non-HSA-compatible health plan, including Medicare Parts A and B
- You cannot be covered by TriCare
- You cannot have accessed your VA medical benefits in the past 90 days (to contribute to an HSA)
- You cannot be claimed as a dependent on another person’s tax return
- You must be covered by the qualified CDHP on the first day of the month
Benefits for you
- Proofpoint will fund your HSA quarterly. We’ll contribute more than half the deductible amount, annually!
- Cigna CDHP: Up to $1,200 (employee only) or $2,400 (you + 1 or more dependents)
- Kaiser CDHP: Up to $1,000 (employee only) or $2,000 (you + 1 or more dependents)
- It’s triple tax-advantaged. You don’t pay federal taxes on the money you set aside, your balance earns interest tax-free, and you won’t pay taxes on withdrawals (for qualified expenses).
- Your funds never expire. You own your HSA and the funds are yours to keep even if you leave the company.
- You can adjust your payroll contribution at any time during the year.
- You must spend your funds on qualified medical, dental and vision expenses.
- The 2021 maximum allowed contribution into your HSA is $3,600 for individual coverage and $7,200 for family coverage (this limit includes Proofpoint’s contribution to your HSA). An additional $1,000 is allowed at age 55+.
- If you have an HSA, you cannot also have a general purpose healthcare FSA. However, you can have an HSA and a limited purpose FSA covering just dental and vision.
Benefits for you
- There are 3 different types of FSAs: General purpose healthcare (medical, dental and vision), limited purpose healthcare (dental and vision only), and dependent care.
- Double tax-advantaged: You don’t pay federal taxes on the money you set aside, and you won’t pay taxes on withdrawals (for qualified expenses).
- You must carefully project your annual spending because you can only roll over $550 of unused funds from the healthcare FSA into the next year. There is no rollover for the dependent care FSA.
- Your enrollment is binding, which means you cannot change your contribution throughout the year unless you have a qualifying life event.
- If you have an HSA, you cannot also have a general purpose healthcare FSA. However, you can have an HSA and a limited purpose healthcare FSA covering just dental and vision.
- You must spend your funds on qualified medical, dental and vision or daycare expenses.
- The 2021 maximum allowed contribution into your general purpose or limited purpose FSA is $2,750. The maximum for the dependent care FSA is $5,000 per married couple filing jointly, or $2,500 if married and filing separately.
Navia Benefits tools & resources
Navia FSA Enrollment Kit
FSA Claim Form
How the CARES Act impacts your FSA
Healthcare FSA Eligible and Ineligible Expenses
Limited Healthcare FSA Eligible and Ineligible Expenses
Dependent Care FSA Eligible and Ineligible Expenses
Video: How to use a Healthcare FSA
Video: How to use a Dependent Care FSA
Dependent Care FSA Debit Card