Tax-Advantaged Accounts

Health savings accounts (HSA)

An HSA is a tax-advantaged, interest-bearing medical savings account available to employees enrolled in the High-Deductible Health Plan (HDHP).

This account allows you to pay for eligible medical expenses with the convenience of a debit card and rolls over from year to year. Although the IRS limits the amount that can be contributed to this plan on an annual basis, there is no limit on how large the account can grow.

Flexible spending accounts (FSA)

A Flexible Spending Account (FSA) allows you to pay for eligible out-of-pocket expenses on a pre-tax basis. As a result, your salary is reduced before taxes are assessed and you pay less in taxes.

Unlike the HSA, the monies contributed to an FSA must be used within the plan year. Any monies not used within the plan year are forfeited. However, there is a grace period that runs to March 15 of the following year during which you can incur expenses and apply them to the previous calendar year.

Types of flexible spending accounts include:

• Health Care Reimbursement Account (HCRA) - The HCRA option is available to employees in the Preferred Provider Organization (PPO) Plan or to those who have waived medical coverage through the Lab. The HCRA allows you to pay for eligible health care expenses with the convenience of a debit card. You have access to the entire annual allocation from the beginning of the Plan Year in which you are participating.
• Dependent Care Reimbursement Account (DCRA) - The DCRA option allows you to pay for eligible expenses related to dependent care.
• Adoption Assistance Expense Account (AAEA) - The AAEA allows you to pay for eligible costs and fees related to adoption.
• Commuter - Allows you to pay for eligible costs related to approved travel for employment