Health Care Flexible Spending Account
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
All regular full-time US 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.
*Benefits described in this site may not be available to employees covered under a collective bargaining agreement. If you have questions related to your collective bargaining agreement, please contact your HR Business Partner.
Money goes in tax-free and comes out tax-free when it’s used for eligible expenses.
Contribute to your accounts easily and effortlessly.
Plan for upcoming expenses by setting aside money each paycheck.
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.
HSA | Health Care FSA | |
---|---|---|
Available with the… | HDHP | Option 3 | PPO 500 | Option 1 PPO 1500 | Option 2 EPO | Option 4 Kaiser HMO (Also available if you waive medical coverage) |
Company contribution? | Yes, Fanatics contributes $500 for individual medical coverage and $1,000 for family medical coverage into your HSA | No |
Maximum 2023–2024 contribution amount? | $3,850 for individual medical coverage $7,750 for family medical coverage Plus an additional $1,000 if you’re age 55 or older | $3,050 |
Change your contribution amount anytime? | Yes | No |
Access your entire annual contribution from the beginning of the plan year? | No | Yes |
Access only funds that have been deposited? | Yes | No |
Use account money for… | All eligible health care expenses | All eligible health care expenses |
“Use it or lose it” at year-end? | No | Yes ($100 to $610 rolls over at year end) |
Money is always yours to keep? | Yes, you own your account and any remaining balance rolls over year after year | No |
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.
With FSA money, you “use it or lose it.” Your 2023–2024 Health Care FSA funds can be used to pay for eligible expenses incurred between July 1, 2023, and June 30, 2024. All 2023–2024 FSA claims must be submitted for reimbursement with the required documentation and substantiated by 11:59 pm ET on September 30, 2024. After that, balances between $100 and $610 will carry over to the next plan year; 2023–2024 balances below $100 or amounts that exceed $610 will be forfeited.
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
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.
With FSA money, you “use it or lose it.” Your 2023–2024 Dependent Care FSA funds can be used to pay for eligible expenses incurred between July 1, 2023, and September 15, 2024, which includes a 2 1/2 month grace period. Then, all 2023–2024 claims must be submitted for reimbursement with the required documentation and substantiated by 11:59 pm ET on September 30, 2024. After that, any remaining 2023–2024 funds in your account will be forfeited.
Available to all regular full-time employees
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.
Put money in tax-free.
Get company contributions.
Pay for care tax-free.
Carry unused money over.
The total amount you and Fanatics can contribute to your HSA this year is:
The HSA has a triple tax advantage that trumps even a 401(k) or Roth IRA.
* 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.
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.
A married couple could need as much as $361,000 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.