Big Benefits of Tax Savings Accounts
November 7th, 2022
When it comes to tax savings, the Health Savings Account (HSA) and Flexible Spending Accounts (FSAs) can really make a difference in your wallet.
These accounts support your financial well-being by offering significant tax savings while stretching your dollars farther on expenses such as doctor’s visits, prescriptions, eyeglasses, and even child or dependent adult daycare (with the Dependent Care FSA).
During Open Enrollment, consider your financial well-being and your future goals, so you can stay on track. If you want to participate in the FSAs or the HSA in 2023, you must actively elect these benefits during Open Enrollment.
To understand your options, here’s a breakdown of the tax savings accounts ZOLL offers.
Flexible Spending Account (FSA) Facts
Participating in the Flexible Spending Accounts (FSAs) is a convenient way to pay for health care and dependent care expenses that you typically would pay out of pocket. You choose the amount you want to contribute each year, up to the IRS annual limit, and that amount is deducted from your paycheck on a pre-tax basis in equal installments throughout the year. Your FSA funds are used to pay for eligible expenses with pre-tax dollars.
| Flexible Spending Account (FSA) | |||
|---|---|---|---|
| Who can participate? | Eligible Expenses | 2023 Annual Limits* | |
| Health Care FSA | PPO90 Members | Doctor’s office visit, prescription drugs, eyeglasses, dental work, and other medical, dental and vision costs | $3,050 |
| Limited Purpose FSA | Saver Plan with HSA members | Dental and vision expenses only | $3,050 |
| Dependent Care FSA | All employees regardless of medical plan enrollment | Preschool, summer day camp, before or after school programs, care for children under age 13, and dependent elder care services | $5,000, or $2,500 if married filing separately |
* The chart above is based on 2023 IRS limits. For 2022 limits, check here.
You have until March 15th of the following plan year to incur Health Care FSA expenses. Claims must be submitted by March 31st. Per the IRS “use it or lose it” rule, any funds remaining in your accounts after March 15th are forfeited.
Keep in mind that you cannot transfer funds from one FSA to another.
An Easier Way to Use Your FSA $$
Swipe your FSA debit card at your doctor’s office and pharmacy to use your Health Care FSA or Limited Purpose FSA dollars. Thanks to auto-substantiation, you can pay for eligible expenses without needing to provide receipts every time you swipe your card! It’s always a good idea to keep your receipts for tax purposes.
Health Savings Account (HSA) Highlights
When you enroll in the Saver Plan with HSA, you can save on taxes while paying for current or future eligible health care expenses through your Health Savings Account (HSA). And ZOLL also contributes to help get you started.
| 2023 Health Savings Account Annual Limits | |||
|---|---|---|---|
| COVERAGE LEVEL | ZOLL CONTRIBUTION | EMPLOYEE CONTRIBUTION MAXIMUM | COMBINED CONTRIBUTION MAXIMUM |
| Employee | $625 | $3,225 | $3,850 |
| Family | $1,250 | $6,500 | $7,750 |
| Over 55 | You can contribute an additional $1,000 | ||
* The chart above is based on 2023 IRS limits. For 2022 limits, check here.
The total amount that ZOLL contributes to your Health Savings Account is based on the coverage level you are enrolled in as of January 1, 2023. If you are hired after the first of the new year, ZOLL’s contribution is based off of the coverage level you select at the time of your new hire enrollment event. Please note that ZOLL’s contribution is subject to proration based on date of hire for all new mid-year plan enrollments.
4 Ways HSAs Help You Save
- Tax-free contributions
- Tax-free withdrawals
- Tax-free earnings
- You keep all your funds — including ZOLL’s.
The money you set aside is deducted from your paycheck before taxes are withheld — letting you keep more of your paycheck.
Your HSA savings used to pay for qualified health care expenses are not taxed.
Any extra savings can be invested, and earnings and interest grow tax free, helping you plan for the future, especially in retirement.
Your HSA funds are always yours, even if you retire or leave ZOLL.
Visit Fidelity for tools and resources to help you maximize your HSA savings.
HSA vs. Health Care FSA: What’s the Difference?
While both the HSA and Health Care FSA allow you to pay for health care expenses with tax-free dollars, there are some differences in how these accounts work.
| HSA | Health Care FSA | |
|---|---|---|
| Who owns the account? | You | ZOLL |
| Who funds the account? | Both You and ZOLL | You |
| When are funds available? | You may use up to the amount available in your account | Full annual election available upon benefits effective date |
| What happens to unused funds? | Funds roll over each year | The deadline to incur expenses is March 15th. Any claims incurred through March 15th must be postmarked no later than March 31st, or any remaining funds in the account will be forfeited based on IRS regulations |
| Which medical plan is eligible to work with the account? | Saver Plan with HSA | PPO90 |
| Can I invest unused funds? | Yes | No |
You can’t have both a Health Care FSA and HSA, but HSA participants can contribute to a Limited Purpose FSA for dental and vision expenses only.
Manage Your Accounts On the Go
Download the Fidelity app to manage your FSA or HSA from the palm of your hand. You can upload receipts, check your balance, and more!
November Financial Webinar
One Size Doesn’t Fit All
Just like every person is different, so are your finances. Join the panel of financial advisors as they discuss how CAPTRUST can help you find the plan that is the right fit for you.
November 16, 2022
1:00 p.m. – 2:00 p.m. ET
REGISTER