FSA, HSA & DCA: Pre-tax benefits with HealthEquity
This benefit is for team members in the US.
Questions
If you have questions regarding your health insurance, please email benefits@thoughtbot.com.
Eligibility
All team members working 30 or more hours per week are eligible to enroll in these pre-tax benefits immediately upon starting with thoughtbot. Your effective date is your start date.
Flexible Spending Account (FSA)
We provide access to a Flexible Spending Account - which allows you to put aside up to $3,050 pre-tax in 2023 to pay for eligible medical expenses. The FSA has a minimum election of $500. The IRS allows up to $610 to rollover to the next plan year (2024). There is a 90-day run-out period at the end of the year to submit receipts for expenses incurred during the plan year. Any funds over $610 that are not claimed during the 90 day run out period will be lost.
In 2022 the IRS allowed up to $570 to rollover to the next plan year, and the contribution limit was $2,850.
Our 2023 FSA is administered by HealthEquity. You will receive a FSA debit card from HealthEquity if you enroll. Your account will show the full balance of your elected yearly contribution immediately, and this amount can be used to pay for expenses immediately. The account will be funded in even payroll withdrawals throughout the year. Please see the FSA Member Guide for details on using your account.
FSA funds can only be used for expenses incurred while you are employed at thoughtbot. You cannot take unused funds with you when your employment ends.
Health Savings Account (HSA)
A Health Savings Account (HSA) is a tax-free account created for the benefit of those on a high deductible health plan. Contributed funds accumulate on a tax-free basis, and can be used towards eligible medical expenses. There are no rollover limits with an HSA. Once the money is in the account, it is yours. If you leave thoughtbot, you will take your remaining HSA funds with you.
Annual HSA Contribution limits for 2023:
- $3,850 for an individual plan
- $7,750 for a family plan
- If you are age 55 or older, you may contribute an additional $1,000
The HSA contribution limit for 2022 was $3,650 for an individual plan and $7,300 for a family plan.
You will have the opportunity to change your HSA election each quarter. Changes should be entered in Employee Navigator before the start of a quarter.
If you enroll in the eligible medical plan for the full year, thoughtbot will contribute to your HSA throughout the year: $750 for individual plans and $1500 for family plans. thoughtbot’s contributions are prorated per pay period.
If your start date at thoughbot is after the 1st of the month, both your and the company’s contribution to the HSA will be prorated starting in the following month.
Our 2023 HSA is administered by HealthEquity. You will receive a HSA debit card if you enroll. The account will be funded in even payroll withdrawals throughout the year. Please see the HSA Member Guide for details on using your account. If you move please update the address directly on the HealthEquity in addition to Paycor.
Read more about the 3 tax advantages of an HSA and winning with an HSA.
Dependent Care Account (DCA)
A Dependent Care Account (DCA) allows you to contribute to pre-tax dollars via payroll deductions and use those funds for custodial care of dependents while you are at work. This can include daycare, preschool, summer day camp, babysitting while you are at work, adult daycare and more for children and adult dependents. Please see the list of eligible DCA expenses.
The DCA plan year runs on a calendar year basis. Funds must be used for expenses incurred during the calendar year. There is a 90-day run-out period at the end of the year to submit receipts for expenses incurred during the plan year.
The maximum contribution per household is $5,000 if you are single or married and filing a joint tax return, and $2,500 if you are married and filing separate tax returns. Money is deposited into your account each time it is deducted from your paycheck.
Our 2023 DCA is administered by HealthEquity. HealthEquity does not issue debit cards for the DCA. Claims must be submitted online or through the mail.
Funds can only be used for expenses incurred while you are employed at thoughtbot. You cannot take unused funds with you when your employment ends.
Changing Coverage
You have 30 days to make changes to your enrollment after qualifying life events (marriage, childbirth, death, divorce, loss of spousal coverage, etc.).
Additionally, if you are enrolled in the HSA, you can change your contribution amount at the end of each quarter.
To change your enrollment following a life event, or to change your HSA contribution amount for the next quarter, visit Employee Navigator and click “Life Events”. We may follow up with you to collect additional information necessary to make the requested change.
Termination
FSA and DCA funds can only be used for charges incurred while you are employed at thoughtbot. You will have 90 days from when your employment ends to submit claims for charges incurred during your employment.
HSA funds are portable. You still own the account after your employment ends. You will be able to continue to use it for eligible medical expenses.
For more information, contact benefits@thoughtbot.com.