Dexter provides four different tax-advantaged accounts to help you save, including one Health Savings Account (HSA) and three different Flexible Spending Accounts (FSA). The money you contribute comes out of your paycheck without being taxed, and you withdraw it tax-free when you pay for eligible expenses.
Which account is right for you?
*To receive Dexter's bi-annual HSA contributions, you must meet eligibility requirements set by the IRS and be actively contributing as of January 1 for the February deposit and July 1 for the August deposit (as well as the actual dates of deposit).
Health Savings Account (HSA)
The HSA is not for everyone. You’re eligible only if you are:
- Enrolled in one of our Consumer Directed Health Plans (CDHPs)
- Not enrolled in other non-CDHP medical coverage, including Medicare, Medicaid, or Tricare.
- Not a tax dependent.
- Not enrolled in a healthcare Flexible Spending Account (FSA), unless it’s a “limited purpose” FSA for dental and vision expenses.
A Health Savings Account (HSA) is an easy way to pay for healthcare expenses that you have today and save for expenses you may have in the future.
How the Consumer Driven Health Plan with HSA works
Dexter's annual contribution amounts are split into bi-annual payments.
FOUR REASONS TO LOVE An HSA:
1
Tax-free. No federal tax on contributions, or state tax in most states. Withdrawals are also tax-free as long as they’re for eligible healthcare expenses.
2
No “use it or lose it.” Your balance rolls over from year to year. You own the account and can continue to use it even if you change medical plans or leave the company.
3
Use it now or later. Use your HSA for healthcare expenses you have today or save it to use in the future.
4
Boosts retirement savings. After you retire, you can use your HSA for healthcare expenses tax-free, or for regular living expenses, taxable but no penalties.
Health Savings Account with Lively
Although you may go to any bank of your choice that offers Health Saving Account options, Dexter has partnered with Lively to make it easy to pair your Consumer Driven Health Plan (CDHP) with a Health Savings Account (HSA). An HSA is automatically opened up for you once you enroll in a CDHP with Dexter.
For more information on the Health Savings Account with Lively, please click the cards below.
HSA 101
activate your card
Mobile App
debit card payments
reimburse yourself
INVEST
Flexible Spending Account (FSA)
You don’t have to enroll in one of our medical plans to participate in the healthcare FSA. However, if you or your spouse are enrolled in one of our consumer directed health plans, you can only participate in the “limited purpose” FSA for dental and vision expenses.
Set aside healthcare dollars for the coming year
A healthcare FSA allows you to set aside tax-free money to pay for healthcare expenses you expect to have over the coming year
How HealthCare FSA works:
- You estimate what you and your family’s out-of-pocket costs will be for the coming year. Eligible expenses include office visits, surgery, dental and vision expenses, prescriptions, even eligible drugstore items.
- You can contribute up to $3,200, the annual limit set by the IRS. Contributions are deducted from your pay pretax, meaning no federal or state tax on that amount.
- During the year, you can use your FSA debit card to pay for services and products. Withdrawals are tax-free as long as they’re for eligible healthcare expenses.
Pro tip: Maximize tax savings by using the Limited Purpose FSA for known dental and vision expenses, and save your HSA or Health Care FSA dollars for medical expenses only.
Dependent Care FSA
Here's how the Dependent FSA works
You set aside money from your paycheck, before taxes, to pay for work-related day care expenses. Eligible expenses include not only child care, but also before and after school care programs, preschool, and summer day camp for children under age 13. The account can also be used for day care for a spouse or other adult dependent who lives with you and is physically or mentally incapable of self-care.
You can set aside up to $5,000 per household per year. You can pay your dependent care provider directly from your FSA account, or you can submit claims to get reimbursed for eligible dependent care expenses you pay out of pocket.
NOTE: If HSA or FSA money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn plus a 20% penalty tax if you withdraw before age 65. After age 65, withdrawals for ineligible expenses are only subject to ordinary income tax. For a list of eligible FSA and HSA expenses, see IRS Publications 502 and 503.
