Most of us only need health care at certain times (and we hope those times aren’t many!), so saving for unexpected uh-ohs or routine care often gets overlooked. Whether your child breaks an arm and needs to go to the ER or you have routine prescriptions you need to pay for, you can use a Health Savings Account (HSA) or Flexible Spending Account (FSA) to pay for health care tax-free.
Which accounts can I enroll in?
How much money can I contribute?
HSA: What you can contribute depends on your level of coverage:
- You can contribute: $3,300
- Rockwell Automation contributes: $200
You + One:
- You can contribute: $6,600
- Rockwell Automation contributes: $400
You + Family:
- You can contribute: $6,400
- Rockwell Automation contributes: $600
If you’re 55 or older, you can make an additional $1,000 catch-up contribution.
Tip: You can change your HSA contribution amount anytime throughout the year.
FSA: You must contribute a minimum of $100 and can add more money as desired, up to a maximum of $2,650. You can’t change your contribution throughout the year, unless you have a qualified status change.
What are the tax advantages?
You fund HSAs and FSAs with pre-tax dollars, and you can withdraw money tax-free to use for eligible expenses. An added benefit of the HSA is the money grows tax-free.
What can I use the money for?
The HSA and General Purpose Health Care FSA can be used for medical, prescription drug, dental and vision expenses for you and your tax dependents (your tax dependents do not have to be enrolled in a Rockwell Automation health plan). Examples include:
- Prescription drugs
- Contact lenses and eyeglasses
- Dental work
Note: The Limited Purpose Health Care FSA can only be used for prescription drug coinsurance and dental and vision expenses.* You may also be eligible to enroll in a Dependent Care FSA. This FSA has different types of eligible expenses than what’s listed above.
When is my deadline to use the money?
HSA: The money in your account rolls over each year and will continue to grow. You can take this money with you if you leave Rockwell Automation. While you can only contribute to an HSA if you’re covered by a high deductible health plan, you can use the funds for medical expenses regardless of the type of health coverage you have—even Medicare.
FSA: You must submit 2018 expenses by March 31, 2019. You must submit your 2019 expenses by March 31, 2020. You can roll over up to $500 each year.
Important: Since your HSA grows year over year, consider using it as a retirement savings vehicle so you can pay for retiree health care expenses down the road.