HSA / FSA
BUDGETING FOR YOUR CARE
The Kenan Advantage Group, Inc. offers two types of pre-tax accounts: a health savings account (HSA) and flexible spending accounts (FSAs).
When you put money into a pre-tax account, you can save up to 20%1 on your care and increase your take home pay. This is because you don’t pay tax on your contributions.
ENROLLED IN THE ANTHEM CONSUMER PLAN?
Health Savings Account
Consider funding a health savings account (HSA).
- Pay for eligible medical, dental, and vision expenses
- You can change your election throughout the year
- Funds become available as they are contributed (deducted from each paycheck)
- Roll over all funds each year
- Invest funds for long-term savings
- Spend funds penalty-free after age 65
ENROLLED IN THE ANTHEM CHOICE PLAN?
Health Care Flexible Spending Account
Consider funding a health care flexible spending account (FSA). If you fund an HSA, you cannot fund a health care FSA.
- Pay for eligible medical, dental, and vision expenses
- Your election is available on January 1, 2024
- Roll over up to $640 each year
- You cannot take income tax deductions for expenses you pay with your FSA
- You cannot stop or change your contribution during the plan year unless you experience a qualifying life event
- You must re-enroll each year if you wish to participate
PAYING FOR CHILD OR ELDER CARE EXPENSES?
Dependent Care Flexible Spending Account
Consider funding a dependent care flexible spending account (FSA).
- Pay for eligible dependent expenses
- Funds become available as they are contributed (deducted from each paycheck)
- No rollover allowed
- You cannot take income tax deductions for expenses you pay with your FSA
- You cannot stop or change your contribution during the plan year unless you experience a qualifying life event
- You must re-enroll each year if you wish to participate
(1) Percentage varies based on your tax bracket.
HEALTH SAVINGS ACCOUNT
If you enroll in the Anthem Consumer Plan, you may be eligible to open and fund a health savings account (HSA) through HealthEquity.
An HSA is a personal savings account that you can use to pay out-of-pocket health care expenses with pre-tax dollars either by debit card or online bill pay.
2024 IRS HSA CONTRIBUTION MAXIMUMS
Contributions to an HSA cannot exceed the IRS allowed annual maximums.
- Individuals: $4,150
- All other coverage levels: $8,300
If you are age 55+ by December 31, 2024, you may contribute an additional $1,000.
HSA ELIGIBILITY
You are eligible to fund an HSA if:
- You are enrolled in the Anthem Consumer Plan.
You are NOT eligible to fund an HSA if:
- You are covered by a non-HSA eligible medical plan, health care FSA, or health reimbursement arrangement.
- You are eligible to be claimed as a dependent on someone else’s tax return.
- You are enrolled in Medicare, TRICARE, or TRICARE for Life.
Refer to IRS Publication 969 for additional eligibility details. If you are over age 65, please contact Human Resources.
MAXIMIZE YOUR TAX SAVINGS WITH AN HSA
Spend.
Pay for eligible expenses such as deductibles, dental and vision exams, menstrual care products, and prescriptions.
Refer to IRS Publication 502 for a list of eligible expenses.
Save.
Roll over funds every year to boost your long-term savings. Even if you switch health plans or jobs, the money is yours
to keep.
Invest.
Invest and grow HSA funds tax free—including interest and investment earnings. After age 65, spend HSA dollars on any expense penalty free.
FLEXIBLE SPENDING ACCOUNTS
The Kenan Advantage Group, Inc. offers two flexible spending account (FSA) options through WEX.
HEALTH CARE FSA (NOT ALLOWED IF YOU FUND AN HSA)
Pay for eligible out-of-pocket medical, dental, and vision expenses with pre-tax dollars.
The health care FSA maximum contribution is $3,200 for the 2024 calendar year.
DEPENDENT CARE FSA
The dependent care FSA allows you to pay for eligible dependent day care expenses with pre-tax dollars. Eligible dependents are children under 13 years of age, or spouse, a child over 13, or elderly parent residing in your home who is physically or mentally unable to care for him or herself.
Work-related eligible expenses include:
- Day care facility fees.
- Before- and after-school care.
- In-home babysitting fees (income must be reported by your care provider).
The dependent care FSA minimum contribution for the 2024 calendar year is $260. You may contribute up to $5,000 to the dependent care FSA for the 2024 calendar year if you are married and file a joint return or if you file a single or head of household return. If you are married and file separate returns, you can each elect $2,500 for the 2024 calendar year.
You cannot stop or change your FSA contribution(s) during the plan year unless you experience a qualifying life event. Please note: You must re-enroll in the FSAs each year if you wish to participate.
HOW TO USE AN FSA
Contribute.
Decide how much to contribute to your FSA on a plan-year basis up to the maximum allowable amounts. This amount will be evenly divided by the number of pay periods and deducted on a pre-tax basis from each paycheck throughout the year.
Pay.
Use your FSA debit card to pay for eligible expenses at time of service or submit a claim for reimbursement at wexinc.com. Keep all receipts in case WEX requires you to verify the eligibility of a purchase.
Use It or Lose It.
Use your health care FSA funds before the end of the year—any funds in excess of $640 will be forfeited.
Dependent care FSA dollars are use it or lose it (no rollover allowed).