A Health Savings Account (HSA) is designed to work with a High Deductible Health Plan (HDHP). It allows you to contribute a portion of your salary pre-tax to cover qualified medical expenses. The funds in your HSA roll over each year, and remain yours to use even if you change jobs or move away from an HDHP.
This account lets you pay for eligible health care expenses using pre-tax dollars. You can use it for expenses incurred by you, your spouse, or any family member you claim as a dependent on your federal income tax return (even if they aren’t covered under your medical benefits). Generally, eligible expenses include things not covered by your medical, dental, or vision plan, such as deductibles, copayments, coinsurance, and even hearing-related expenses.
For FY25, if you have single HDHP coverage, your employer will contribute $500, and you may contribute up to $3,650. If you have family HDHP coverage, your employer will contribute $1,000, and you may contribute up to $7,300.
Limited Flexible Spending Account
A Limited Flexible Spending Account (FSA) is a pre-tax benefit account that works with your Health Savings Account (HSA), allowing you to set aside money to pay for qualified dental and vision expenses.
For FY25, there is a minimum of $32.40 per plan year and a maximum of $3,200 per plan year.