Employees enrolling in the High Deductible Health Plan (HDHP) may be eligible to enroll in a Health Savings Account. HSAs are tax-favored medical savings accounts available to employees to assist with health care expenses. An HSA can only be established by individuals who are enrolled in a qualified high deductible health plan (HDHP).

 

Max HSA contributions for 2025: Individual $4,300 | Family $8,550 

​

HSAs offer account holders triple tax savings: 

​

• Tax-favored contributions through pre-tax payroll deductions or federal tax deductions on post-tax dollars 

​

​

Health Reimbursement Account (HRA)- Paired with the Copay or Traditional plan

A Health Reimbursement Account (HRA) is an account created and owned by your employer to help cover your eligible medical expenses. 

​

​

What type of expenses can be paid with an HRA plan?

HRA funds to be used for any item that qualifies as a medical expense under the Internal Revenue Code (except long-term care services). The employer establishes the parameters of the plan design, which determines what expenses are eligible. Generally, HRA plans are designed to reimburse vision, dental, and medical expenses. 

​

Flexible Spending Account (FSA) 

 

With medical costs and child care expenses increasing every year, you may find yourself asking, “How can I save money?” Contributing pre-tax money to an FSA is a great way to help pay for and offset these expenses. FSAs are provided by employers to help employees pay for eligible medical and dependent care expenses. Dollars contributed to an FSA are deducted from your pay before you pay federal, state, or social security taxes. By contributing to an FSA, savings up to 40% can be realized on every dollar you spend on out-of-pocket medical expenses and dependent care expenses. 

​

How does an FSA work? At the beginning of your employment or the beginning of a new plan year (also referred to as open enrollment), you may elect the dollar amount you want withheld from each paycheck to pay for eligible medical care expenses up to the limit set by your employer. In 2025, employee contributions for a General or Limited FSA cannot exceed $3,300 per IRS rules. Each pay period, the designated amount will be withheld from your paycheck and credited to your account. Your entire annual election is available to you immediately for qualified eligible medical expenses. You are allowed to roll over $610 in unused funds into the following plan year. 

​

What is a Dependent Care Flexible Spending Account? A Dependent Care Flexible Spending Account, also known as a Dependent Care FSA, is a pre-tax employee spending account that reimburses for qualified dependent care expenses. Qualified expenses include childcare for a dependent under age 13 or care for a spouse or dependent that is not able to care for him or herself. The maximum amount for dependent care is $5,000. The pre-tax deduction applies to a participant’s federal, state, and FICA taxes, which can add up to nearly a 40% tax savings in many instances. Per the IRS, Dependent Care FSA does not have rollover provisions, “use it or lose it”. 

​

​

​