BUDGETING FOR YOUR CARE
When you put money into a health savings account or flexible spending account, you can save about 20%1 on your care. This is because you don’t pay taxes on your contributions.
COMPARE YOUR OPTIONS
(1) Percentage varies based on your tax bracket.
HEALTH SAVINGS ACCOUNT
MAXIMIZE YOUR TAX SAVINGS WITH AN HSA
SPEND
Use your HSA dollars today to pay for eligible health care expenses such as: deductibles, copays, dental expenses, eye exams, and prescriptions.
SAVE
Save your HSA funds for the future. An HSA allows you to save and roll over money year to year. The money in the account is always yours, even if you change health plans or even jobs.
INVEST
The money in your HSA can be invested and grows tax free—including interest and investment earnings. After you reach age 65, you can spend your HSA dollars penalty free on any expense.
If you enroll in one of the BCBSAZ CDHPs, you may be eligible to open and fund a health savings account (HSA) through HealthEquity
An HSA is a savings account that you can use to pay out-of-pocket health care expenses with pre-tax dollars.
SOUTHWEST HUMAN DEVELOPMENT CONTRIBUTION
If you enroll in one of the BCBSAZ CDHPs, Southwest Human Development will help you save by contributing to your account.
BCBSAZ CDHP
- Employee-only: $600 per year
- All other coverage levels: $1,200 per year
BCBSAZ Alliance CDHP
- Employee-only: $750 per year
- All other coverage levels: $1,500 per year
2024 IRS HSA CONTRIBUTION MAXIMUMS
Contributions (including Southwest Human Development 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, you may contribute an additional $1,000.
HSA ELIGIBILITY
You are eligible to fund an HSA if:
- You are enrolled in the BCBSAZ CDHP.
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 the Human Resources Team.
FLEXIBLE SPENDING ACCOUNTS
Southwest Human Development offers three flexible spending account (FSA) options administered by WEX.
Log into your account at wexinc.com to: view your account balance(s), calculate tax savings, view eligible expenses, download forms, view transaction history, and more.
HEALTH CARE FSA (NOT ALLOWED IF YOU FUND AN HSA)
The health care FSA maximum contribution is $3,200 for the 2024 calendar year. At the end of the plan year, you can roll over $640 from your FSA to use in the following year. Any amount in excess of $640 will be forfeited.
LIMITED PURPOSE HEALTH CARE FSA (IF YOU FUND AN HSA)
If you fund an HSA, you can also fund a limited purpose health care FSA. The limited purpose health care FSA can only be used for dental and vision expenses.
The limited purpose health care FSA maximum contribution is $3,200 for the 2024 calendar year. At the end of the plan year, you can roll over $640 from your FSA to use in the following year. Any amount in excess of $640 will be forfeited.
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.
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. Dependent care FSA funds are use it or lose it. All funds not used in 2024 will be lost.
When you fund a dependent care FSA to the maximum amount ($5,000), you will save $1,000 per year.* This is because you don’t pay taxes on your FSA contributions.
*Amount varies based on your tax bracket.