Overview

You can save money on health care and dependent care expenses by paying for them with tax-free accounts. Using these accounts effectively will help you take full advantage of their money-saving potential

Who’s eligible?

All regular full-time employees are eligible for a tax-advantaged account. The Health Savings Account also requires enrollment in the HDHP | Option 3 medical plan. You may enroll within 31 days of your hire date, during our annual open enrollment period, or within 31 days of a qualified life event. Learn more about life events.

Tax-advantaged accounts:

Health Care Flexible Spending Account

 

Dependent Care Flexible Spending Account

 

Health Savings Account

 

Key features at a glance:

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Tax-free money

Money goes in tax-free and comes out tax-free when it’s used for eligible expenses.

Convenient payroll deductions

Contribute to your accounts easily and effortlessly.

Helpful budgeting tool

Plan for upcoming expenses by setting aside money each paycheck.

How much could you save?

View this example to see how much contributing to an HSA or FSA could save you.

Tax-advantaged accounts make a difference!

See how much contributing to an HSA or FSA could save you over the course of a year.

Tax savings on $2,000 contribution to HSA or FSA
24% in federal income tax$480
5% in state income tax*$100
7.65% in payroll tax$153
Total tax savings for the year with an HSA or FSA$733

This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.

* Contributions are not subject to federal tax. However, HSA contributions are currently subject to state tax in AL and CA, both HSA and FSA contributions are subject to state tax in NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA and/or FSA.

 

Compare Health Accounts

 HSAHealth Care FSA
Available with the…HDHP | Option 3PPO 500 | Option 1
PPO 1500 | Option 2
Florida EPO | Option 4
Kaiser HMO
(Also available if you waive medical coverage)
Company contribution?Yes, Fanatics contributes $250 annually into your HSANo
Maximum 2021 contribution amount?$3,600 for individual medical coverage
$7,200 for family medical coverage
Plus an additional $1,000 if you’re age 55 or older
$2,750
Change your contribution amount anytime?YesNo
Access your entire annual contribution from the beginning of the plan year?NoYes
Access only funds that have been deposited?YesNo
Use account money for…All eligible health care expensesAll eligible health care expenses
“Use it or lose it” at year-end?NoYes (up to $550 rolls over at year end)
Money is always yours to keep?Yes, you own your account and any remaining balance rolls over year after yearNo
 

Health Care Flexible Spending Account

Using a Health Care Flexible Spending Account (FSA) is like getting a discount on everyday health care expenses because you’re paying with tax-free money.

Use your money!

With FSA money, you “use it or lose it.” Your 2021/2022 Health Care FSA funds can be used to pay for eligible expenses incurred between July 1, 2021, and June 30, 2022. You have until 11:59 pm ET on September 30, 2022, to submit your reimbursement requests with the required documentation or provide substantiation for debit card purchases (if needed). After that, up to $550 will carry over to the next plan year if you've re-enrolled in the Health Care FSA; any 2021/2022 funds in your account over that amount will be forfeited.

Health Care FSA

Available to all regular full-time employees, but if you enroll in the HDHP | Option 3, please note that you cannot enroll in both a Health Care FSA and an HSA

  • Contribute up to $2,750 for the plan year to help cover eligible medical, dental, and vision expenses.
  • Select your annual contribution as a new employee, during Open Enrollment, or within 31 days of a qualified life event. You can only change your contribution amount during the year if your personal situation changes.
  • Spend your money by using your FSA debit card or request reimbursement for payments you’ve made.
  • Your entire annual contribution amount is available to you from the beginning of the plan year.
  • Up to $550 of unused money may be carried over to the next plan year; amounts above $550 will be forfeited.
  • Visit the FSA Store to easily purchase FSA-eligible items and pay with your debit card — this can be a great way to use up remaining funds before the end of the plan year.
  • Note: FSAs require active enrollment during each annual open enrollment period if you want to participate the following year.
 

Dependent Care Flexible Spending Account

A Dependent Care Flexible Spending Account (DCFSA) can help you save money on child care or elder care costs because you use tax-free money to pay for your expenses. Eligible expenses for this account include the cost to provide care for children under age 13 or for adults who are unable to care for themselves.

Keep in mind, there are separate FSAs for health care and dependent care. You cannot use money in your Dependent Care FSA to pay for health care expenses for your dependents.

Use your money!

With FSA money, you “use it or lose it.” Your 2021/2022 Dependent Care FSA funds can be used to pay for eligible expenses incurred between July 1, 2021, and September 15, 2022, which includes a 2 1/2 month grace period. Then, you have until 11:59 pm ET on September 30, 2022, to submit reimbursement requests along with the required documentation. After that, any remaining 2021/2022 funds in your account will be forfeited.

Dependent Care FSA

Available to all regular full-time employees

  • Contribute up to $5,000 for the plan year to help cover your eligible dependent care expenses — your DCFSA funds can only be used to pay for care for children under age 13 or adults who cannot care for themselves.
  • Use the Optum Financial website to request reimbursement for payments you’ve made. Keep in mind, you only have access to money that has actually been deposited into your account — your entire annual contribution amount is not available to you from the beginning of the plan year.
  • Select your annual contribution as a new employee, during Open Enrollment, or within 31 days of a qualified life event. You can only change your contribution amount during the year if your personal situation changes.
  • Unused money does not carry over at the end of each year — use it or lose it. The Dependent Care FSA Plan Year runs from July 1 ‒ June 30. Any money not used within two months and fifteen days of the end of the Plan Year (September 14) will be forfeited.
  • Note: FSAs require active enrollment during each annual open enrollment period if you want to participate the following year.
 

Health Savings Account

Employees in the HDHP | Option 3 can open and contribute money to a Health Savings Account (HSA) administered by Optum Financial. The HSA is a tax-free savings account that you can use to pay for eligible health expenses anytime, even in retirement.

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Put money in tax-free.

  • Contribute to your HSA through pre-tax payroll deductions.
  • Change your contribution amount anytime.
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Get company contributions.

  • Fanatics will contribute $250 to your HSA annually.
  • You must enroll in and open an HSA, even if you don’t plan to contribute, in order to receive Fanatics’ contribution.
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Pay for care tax-free.

  • Pay for eligible medical, dental, and vision expenses for you and your family using your HSA debit card (provided sufficient funds are in your account) or reimburse yourself later through the Optum Financial website.
  • Keep in mind, you can only spend money that has actually been deposited into your account.
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Carry unused money over.

  • All the money in your HSA is yours to keep, year after year
  • You can build up savings to pay for future health care expenses. You can even invest your money once it reaches a minimum balance, giving you the potential for tax-free earnings growth and a way to plan ahead for medical costs in retirement.
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Keep in mind: 2021 contribution limits

The total amount you and Fanatics can contribute to your HSA this year is:

  • $3,600 for individual medical coverage.
  • $7,200 for family medical coverage.
  • Add $1,000 to these limits if you’re age 55 or older.
Triple tax advantage

The HSA has a triple tax advantage that trumps even a 401(k) or Roth IRA.

  1. Money goes in tax free for federal taxes (state income taxes may apply in some states).
  2. Your balance can grow tax-free, through interest or investment earnings.
  3. Money comes out tax free when used on eligible expenses.*

* Money in an HSA can be withdrawn tax free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.

Getting started

An HSA is only offered to you if you enroll in the HDHP | Option 3. If you’re not currently enrolled in the HDHP | Option 3, you may enroll during Open Enrollment.

Once you’ve enrolled in the HDHP | Option 3, you will receive a welcome letter and payment card for your Optum Financial HSA as long as you’ve satisfied the identity verification process with the bank custodian. (This usually happens automatically when you elect to enroll in the HDHP | Option 3.) If the bank custodian is unable to verify your identity, they may contact you for additional information. You must have an active account with Optum Financial in order to receive Fanatics’ contribution, so make sure you complete the verification process if additional information is requested, regardless of whether you plan to contribute to your HSA yourself.

Think long term!

A married couple could need as much as $363,000 in savings to meet their health care costs during retirement, even with Medicare coverage. If you contributed the annual maximum to your HSA for 30 years, your account could grow to $313,000. And don’t forget, Fanatics’ contributions help you reach the annual limit faster!

Source: EBRI.org. Estimate of future account value assumes a 5% rate of return and no withdrawals.