Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) allow you to contribute money on a pre-tax basis to help pay for eligible medical and dependent care expenses, saving money on taxes in the process. HSAs and FSAs have annual contribution limits.
Optum Bank provides the online bank account and debit cards for the Health Savings Account (HSA) and both of the Flexible Spending Account (FSA) plans.
Health Savings Account (HSA): Carleton’s HSA account is availabe to employee’s who elect Carleton’s Blue plan which qualifies as a High Deductible Health Plan (HDHP).
Flexible Spending Account (FSA) Medical: This plan is available to all benefit eligible employees, and can be elected with Carleton’s Maize plan ,or on it’s own.
- Please Note: FSA Medical plans are not compatible with an HSA High Deductible Health Plan (HDHP), for example Carleton’s Blue plan, if you elect the Blue plan you automatically waive enrollment into the FSA Medical plan.
Flexible Spending Account (FSA) Dependent Care: This plan is available to all benefit eligible employees, regarless if you elect other benefits.
Health Savings Acccount (HSA)
Health Savings accounts are available to Blue Plan participants.
By enrolling in the Blue plan, you will receive a contribution from Carleton into your HSA account.
- The purpose of an HSA is to help you pay for eligible medical, dental and vision expenses. Employees can choose to make an elective pre-tax contribution (which lowers your taxable income).
- Newly hired employees who enroll in an HSA or those employees with mid-year qualifying event changes must adhere to the IRS limit (pro-rated to the months remaining within the calendar year).
- There is no risk of forfeiture, balances roll over from one year to the next, and you can keep your HSA if you leave Carleton.
- You also have the option to invest your HSA dollars, once your account balance exceeds $2,000. Learn more about HSA accounts through Optum’s Educational resources.
- HSAs are subject to IRS limits and regulations, the chart below summarizes the 2022 limits:
|Tier||Employee Annual Contribution Limit||Carleton HSA Annual Contribution||2023 IRS Annual Limit||2023 Employee Age 55 Catch Up Contribution|
|Employee + 1:||$5,350||$2,400||$7,750||$1,000|
HSA & Medicare
When you turn age 65 you need to notify HR when you are enrolling in Medicare, contributions made by yourself and Carleton will need to be stopped. Optum’s FAQ includes important resources, including information about your HSA and Medicare enrollment.
Flexible Spending Account (FSA) Medical & Dependent Care
Medical and Dependent Care Spending Accounts allow you to set aside money on a pre-tax basis,which lowers the employee’s taxable income for the current tax year. Distributions for qualified expenses are tax free. Flexible spending accounts are subject to annual IRS limits and regulations. Medical and Dependent Care Flex Accounts require annual election.
FSA Medical: Having an FSA allows you to set aside pre-tax dollars for you and your qualified dependents:
- Pay for eligible medical, dental and vision expenses.
- Dependents are not required to be covered by your health insurance plan.
- This plan is a “use it or lose it” plan which means that any remaining balance is forfeited at the end of the calendar year or when you leave Carleton.
- Our plan does offer a “grace and run-out” period which offers some flexibility in avoiding forfeiture annually.
|2023 Flexible Spending Account|
|Grace Period||Run-Out Period|
|2023 IRS FSA Maximum||$3,050||Allows you to incur expenses thru March 15, 2024 to spend down remaining 2023 balance.||Allows you to request reimbursement by April 30, 2024 before forfeiture of any remaining 2023 balance.|
FSA Dependent Care Account: Allows you to set aside pre-tax dollars to pay for the care of children under age 13 and certain older family members, while the employee works or goes to school.
- The annual contribution limit for 2023 is $5,000 ($2,500 if married and filing separately).
- Examples of eligible expenses are in-home child care, licensed day care facilities, before and after school programs, day camps and adult day care (i.e., custodial care for an eligible adult who is mentally or physically incapable of caring for themselves is very specific and will require medical documentation).
- This is a pay as you go account, meaning that the funds must be available in your account prior to receiving reimbursement.
- This plan is a “use it or lose it” plan which means that any remaining balance is forfeited at the end of the calendar year, it is important to estimate expenses carefully before making your annual election.
OPTUM Debit Card Important Information
Your personal information is extremely important! If you are currently enrolled in a flexible spending account or Carleton’s high deductible health plan (Blue Plan with an HSA), please note that your respective debit MasterCard comes with added (free) protection and their services are just a few steps away!
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For your safety and peace of mind, sign up today for this free service at MasterCard’s ID Theft Protection. Simply enter the first 6 digits of your debit MasterCard to get started.