FSA & HSA Spending Accounts
Flexible Spending Account (FSA)
A Flexible Spending Account (FSA) is a type of savings account that provides the account holder with specific tax advantages.
The medical FSA account allows you to contribute a portion of your regular earnings before tax. Distributions from the account must be used for qualified expenses related to medical and dental services. The IRS limits how much can be contributed to an FSA each year.
Another type of FSA is a dependent-care flexible spending account, which is used to pay for childcare expenses for children aged 12 and under and also can be used to pay for the care of qualifying adults, including a spouse, who can't care for themselves and meet specific Internal Revenue Service (IRS) guidelines. A dependent-care FSA has different maximum contribution rules than a medical-related FSA.
Avon offers both medical FSAs and dependent-care FSAs through American Fidelity. These savings accounts are fully funded by the employee, the school does not make any contributions into these accounts.
Health Savings Account (HSA)
A Health Savings Account (HSA) is a tax-advantaged account created for or by individuals covered under high-deductible health plans (HDHPs) to save for qualified medical expenses. Contributions made into the account are limited to a maximum amount each year per the Internal Revenue Service (IRS). The contributions are invested over time and can be used to pay for qualified medical expenses, such as medical, dental, and vision care and prescription drugs.
To assist in offsetting the higher deductible of HDHPs, the school makes a bi-annual contribution into these accounts. The total school contribution for the year is based on the level of HDHP medical coverage:
- Employee Only Coverage = $1500 Annually
- Employee + Dependent Coverage = $2500 Annually
As mentioned above, people with HDHPs can open HSAs. To qualify for an HSA, the taxpayer must meet eligibility standards established by the IRS. An eligible individual is someone who:
- Has a qualified HDHP
- Has no other health coverage
- Is not enrolled in Medicare
- Is not claimed as a dependent on someone else’s tax return
American Fidelity is Avon's HSA provider. To read more on what the IRS considers qualified medical expenses, refer to: IRS Publication 502.
Change Your HSA Contribution:
Contact
Lora Lewis
Benefits Coordinator
p: (317) 544-6045
Lori Redeker
Asst Benefits Coordinator
p: (317) 544-6024