Issue link: http://townofcary.uberflip.com/i/1520327
TOWN OF CARY Benefits Handbook Page 26 QUICK TIP At age 65, you can use the funds for any expenses without tax penalties. NEWS FLASH If you are on employee only coverage, you can only contribute $650 (max of $4,150 minus Cary's $3,500). If you had dependents on your plan you could contribute $4,800 (max of $8,300 minus Cary's $3,500). QUESTIONS? Call Cary's designated P&A line at: (833) TWN-CARY or (833) 896-2279 for any questions ? TYPES OF ELIGIBLE EXPENSES The HSA can be used for eligible medical, dental, and vision expenses for you or any eligible dependent. A more detailed list of eligible expenses is provided by the P&A Group. USE OF FUNDS An HSA can be used on any expenses incurred on or after you are enrolled in the Medical — High Deductible Health Plan (HDHP). If you decide to transition off of the HDHP at some point, the funds are still available to you and can be used for eligible expenses. And at age 65, you can use the funds for any expenses without tax penalties. Unlike other pre-tax plans, such as FSAs, HSAs do not require you to submit claims. Instead, when you pay out-of-pocket for an eligible expense you can reimburse yourself by easily transferring money from your HSA to your designated checking or savings account. To transfer funds, you first need to set up another bank account in your HSA portal. UNUSED FUNDS The funds in your HSA roll over from year to year, with no maximum roll over amount. Any funds that you have will accrue interest, and funds over $1,000 can be invested into low-risk interest earning accounts. CHANGES You can change your contribution amount during Open Enrollment, with a Qualifying Life Event (QLE) or at any time. LIMITATIONS A tax penalty may be imposed in certain instances: 1. If HSA funds are used for ineligible expenses. 2. If you are not enrolled an HDHP for 12 months. 3. If you've become Medicare eligible within the plan year. LIFESTYLE SPENDING ACCOUNT (LSA) Cary provides a Benefits My Way Lifestyle Spending Account (LSA) administered by P&A Group. This account is designed to reimburse you for out-of-pocket expenses focused on overall health and well-being to support your daily life. ELIGIBILITY All employees who are enrolled in the Medical – Traditional Plan (PPO) or who have waived coverage, but are on a group health plan, are eligible for this benefit. Employee Spending Accounts