Tax-advantaged accounts: FSA, HSA, TSA

Tax-advantaged accounts: FSA, HSA, TSA

Tax-advantaged accounts help you pay with pre-tax dollars for health care related expenses, dependent care for child care expenses, and parking or transit expenses that aren't covered by any other benefit plan.

If you take advantage of these accounts, you can pay with a Benefit Access Visa Card that's issued to you. For FSAs and HSAs, you can also reimburse yourself from your accounts, and have the funds deposited to your bank account on file in Workday. Accounts are administered by McGriff Employment Benefit Solutions.



FSA: Flexible spending accounts

HSA: Health savings account

TSA: Transportation spending account

Health Care FSA

The Health Care FSA allows you to set aside money on a pre-tax basis to pay for health care expenses not covered by your benefit plan.

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Health Care FSA specifics

  • Participation is voluntary.
  • If you enroll in the $500 PPO plan, $250 ACO plan, Kaiser HMO, or decline medical coverage, you're eligible to participate in a Health Care FSA.
  • You may contribute up to $3,200 into a Health Care FSA in 2024.
  • Your contributions are made on a pre-tax basis through payroll deduction.
  • Up to $640 in unused 2024 funds can roll over into 2025. 

Using your Health Care FSA

  • You can use your health care FSA for certain qualified expenses.
  • Other expenses can't be reimbursed.

Under IRS regulations, expenses are treated as having been incurred when the participant is provided with the health care and not when the participant is billed for or pays for the health care. In other words, you can't submit a bill for reimbursement for future services even if you've already paid for them. In addition, you can't be reimbursed for expenses incurred prior to your coverage effective date or after coverage ends.

Your contributions

When you first enroll in your benefits, as well as during Annual Enrollment, you'll have the opportunity to choose a specific amount of money to contribute to the FSAs. For the Health Care FSA, you'll need to calculate your monthly anticipated expenses to determine your annual contribution.

Health Care FSA expenses

Qualified expenses

Qualified expenses that can be claimed through the Health Care FSA include:

  • Medical and dental deductibles
  • Medical and dental co-payments or services not covered by the plans
  • Vision expenses not covered by insurance
  • Hearing expenses including exams and hearing aids
  • Prescription drug costs not covered by the medical plan

Find more qualified expenses on the McGriff Employee Benefit Solutions  or in IRS publication 502 (PDF) . 

Note: Over-the-counter medications are considered non-reimbursable expenses.

Non-reimbursable expenses

The following expenses are not qualified under the Health Care FSA:

  • Over-the-counter medications (unless prescribed by a doctor)
  • Cosmetic procedures (e.g., teeth whitening, dermabrasion, chemical peels, or spider vein treatment)
  • General wellness expenses (e.g., health club dues, special foods, vitamins, exercise programs and equipment, or weight loss programs)
  • Insurance premiums (e.g., replacement insurance for contact lenses or other health plan policies)
  • Other expenses, including shipping and handling, missed appointment, late payment, or interest charges

Find more qualified expenses on the <McGriff Employee Benefit Solutions  or in IRS publication 502 (PDF) . 

FSA examples

If you participate in an FSA, you'll need to plan your contributions carefully. Take into account if you're enrolling during annual benefits enrollment or if you're a new hire or newly benefits-eligible teammate enrolling at a different time.

New hires and newly benefits-eligible teammates

Calculate your monthly anticipated expenses and multiply that by the remaining pay periods in the year. Consider the following example:

You're hired on July 26 and enroll in your TIH benefits on August 1. You want to contribute $300 per month to an FSA to cover anticipated expenses. Considering you'll participate for 5 months for the remainder of the plan year (August through December), you'll make a total annual contribution of $1,500 ($300 per month for 5 months). Your contribution per pay period will be $300 if you're paid monthly or $150 if you're paid semi-monthly.

When you enroll, Workday won't let you contribute more than is allowed for the year.

Teammates enrolling during Annual Enrollment

Calculate your monthly anticipated expenses and multiply that by 12. Consider the following example:

You want to contribute $50 per each pay period to an FSA to cover anticipated expenses. Considering you'll participate for 12 months in the upcoming plan year (from January 1 through December 31), you'll make an annual contribution of $1,200 ($50 per pay period for 12 months).

When you enroll, Workday won't let you contribute more than is allowed for the year.

Limited Use Health Care FSA

The Limited Use Health Care FSA is available to participants in the high-deductible health care plan and can be used for eligible health care expenses (such as dental and vision) that aren't covered by insurance and are not medical expenses.

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Limited Use Health Care FSA specifics

  • Can be used for dental and vision expenses only—medical expenses aren't eligible expenses.
  • Participation is voluntary.
  • If you enroll in the high-deductible plan you are eligible to participate in the Limited Use Health Care FSA.
  • You may contribute up to $3,200 into a Limited Use Health Care FSA in 2024. 
  • Your contributions are made on a pre-tax basis through payroll deduction.
  • Up to $640 in unused 2024 funds can roll over into 2025.

The carried-over funds must be used in the next plan year; they can't accumulate. Once any carryover balance has been used, McGriff will pay claims from the current year's contribution.

Using your Limited Use Health Care FSA

The Limited Use Health Care FSA is for eligible health care expenses that aren't medical expenses (e.g., dental or vision care). Additionally, participants cannot submit claims for medical services covered under the high-deductible plan.

Under IRS regulations, expenses are treated as having been incurred when the participant is provided with the health care and not when the participant is billed for or pays for the health care. In other words, you can't submit a bill for reimbursement for future services even if you have already paid for them. In addition, you cannot be reimbursed for expenses incurred prior to your coverage effective date or after coverage ends.

Dependent Care FSA

The Dependent Care FSA allows you to set aside money on a pre-tax basis to pay for qualified dependent care expenses (before- and after-school expenses). It isn't used to reimburse yourself for a dependent's medical expenses.

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Dependent Care FSA specifics

  • Participation is voluntary.
  • Any benefits-eligible teammate may enroll in the Dependent Care FSA.
  • You may contribute up to $5,000 to the Dependent Care FSA and 2024.
  • However, under IRS rules, your contributions can't be more than you or your spouse's income, whichever is less. If you are married and file taxes separately, you are limited to $2,500 in contributions in 2024. In addition, if you contribute to a Dependent Care FSA through another employer, your combined contributions for the year may not exceed $5,000.
  • Your contributions are made on a pre-tax basis through payroll deduction.

Using your Dependent Care FSA

You can only be reimbursed for the amount currently available in your account. You have until March 31 of next year to file claims for eligible dependent care expenses incurred through December 31 of this year. Otherwise, your balance will be forfeited.

Your contributions

When you first enroll in your benefits, as well as during annual enrollment, you'll have the opportunity to choose a specific amount of money to contribute to the FSAs. For the Dependent Care FSA, you'll need to calculate your monthly anticipated expenses to determine your annual contribution.

Dependent Care Flexible Spending Account calendar-year maximums are subject to Internal Revenue Code non-discrimination testing requirements and therefore may be reduced at the plan administrator’s discretion to ensure TIH's plan remains compliant with Internal Revenue Code requirements.

HSA

The HSA allows you to use pre-tax dollars to pay for qualified health care expenses.

If you choose an HDHP plan with an HSA, TIH will fund that account with $500 for an teammate-only plan or $1,000 for a spouse, child or family plan in two equal installments, in January and July. This two-part funding allows those new to a high-deductible health plan (HDHP) access to HSA dollars in the event they're needed early in the year. 

HSA maximum contributions 

  2024 teammate contribution TIH Contribution 2024 Total Contribution
Employee Only  $3,650 $500 $4,150
Employee and Spouse (or Domestic Partner), Employee and Child(ren), or Family Coverage $7,300 $1,000 $8,300

Annual catch-up contributions

  • Available to employees who will reach age 55 by the end of the calendar year
  • Available until employees become eligible for Medicare (generally, reaching age 65)
  • In addition to the amounts listed above, those who are eligible can contribute up to an additional $1,000 per calendar year 
View HSA Fast Facts (PDF) to plan your HSA

Benefit Access Visa Card claims notice

Please note that the Benefit Access Visa Card will be used for all tax-advantaged accounts: Health Care and Dependent Care Accounts (FSA), Limited Flexible Spending Accounts (LFSA), Health Savings Accounts (HSA) and Transportation Spending Accounts (TSA). Failure to substantiate claims for any FSA account in the allotted time frame would result in your card being suspended for all accounts⁠—including transportation.