SAVINGS ACCOUNTS

SAVINGS ACCOUNTS

Health Savings Account

A Health Savings Account, or HSA, is a tax-advantaged savings account you can use to pay for qualified medical, dental and vision expenses and save for current and future healthcare costs. Wex provides HSA benefits to Edkey employees. The money in your HSA always belongs to you. Even if you leave the company or you don’t use a lot of health services now, your funds will carry over from year to year and will always be there if you need them in the future – even after retirement.

The maximum contribution for 2024 is $4,150 for self-only coverage or up to $8,300 for family coverage. Participants who are 55 years of age or older can contribute an additional $1,000 annually. Edkey contributes $10, per pay period, to your HSA.

To contribute, you must be enrolled in the high-deductible health plan (HDHP).

Maintaining good oral hygiene is paramount to your overall health and wellness. That is why BPU has partnered with BlueKC to provide our full-time employees with affordable dental coverage.

Health Savings Account

An Health Savings Account, or HSA, is a tax-advantaged savings account you can use to pay for qualified medical, dental and vision expenses and save for current and future healthcare costs. Wex provides HSA benefits to Edkey employees. The money in your HSA always belongs to you. Even if you leave the company or you don’t use a lot of health services now, your funds will carry over from year to year and will always be there if you need them in the future – even after retirement. 

A Health Savings Account, or HSA, is a tax-advantaged savings account you can use to pay for qualified medical, dental and vision expenses and save for current and future healthcare costs. Wex provides HSA benefits to Edkey employees. The money in your HSA always belongs to you. Even if you leave the company or you don’t use a lot of health services now, your funds will carry over from year to year and will always be there if you need them in the future – even after retirement.

The maximum contribution for 2024 is $4,150 for self-only coverage or up to $8,300 for family coverage. Participants who are 55 years of age or older can contribute an additional $1,000 annually. Edkey contributes $10, per pay period, to your HSA.

To contribute, you must be enrolled in the high-deductible health plan (HDHP).

7 Essential Tips for Maximizing your Health Savings Account (HSA)

Maximize Contributions

Contribute the maximum allowed amount to your HSA each year to take full advantage of its tax benefits. For 2024, the limit is $3,800 for individuals and $7,600 for families.

Employer Contributions

Take full advantage of employer contributions to your HSA. Edkey contributes $10, per pay period, to your HSA. It’s essentially free money that can boost your healthcare savings.

Invest Wisely

Once your HSA balance reaches a certain threshold, consider investing a portion of it in mutual funds or other investment options offered by your HSA provider. This can help your funds grow over time.

Track Expenses

Keep thorough records of all medical expenses paid from your HSA, including receipts and explanations of benefits (EOB) statements. This ensures you can easily reimburse yourself for qualified expenses and avoid penalties.

Shop Around

Compare prices for medical services and prescriptions to get the best value for your HSA dollars.

Stay Healthy

Invest in preventive care to avoid costly medical bills down the road. Many preventive services are covered by HDHPs without requiring you to meet your deductible.

Plan for the Future

Treat your HSA as a long-term savings vehicle for healthcare expenses. Consider how you can strategically use it in retirement, as funds can be withdrawn penalty-free for non-medical expenses after age 65 (though income tax will apply).

FLEXIBLE SPENDING ACCOUNT

FLEXIBLE SPENDING ACCOUNT

Healthcare Flexible Spending Account

A Healthcare Flexible Spending Account, or FSA, allows you to set aside pre-tax dollars to pay for eligible medical expenses and dependent care expenses. Wex provides FSA benefits to Edkey employees.

FSAs operate on a “use it or lose it” principle. Typically, funds contributed to an FSA must be used within the plan year. Eligible participants can contribute up to $3,200 per family per year for qualified medical expenses. Unused funds up to $610 can be rolled over to the next year.

If you decline company medical coverage or enroll in a non-HSA medical plan, you are eligible for an FSA.

Maintaining good oral hygiene is paramount to your overall health and wellness. That is why BPU has partnered with BlueKC to provide our full-time employees with affordable dental coverage.

Healthcare Flexible Spending Account

A Healthcare Flexible Spending Account, or FSA, allows you to set aside pre-tax dollars to pay for eligible medical expenses and dependent care expenses. Wex provides FSA benefits to Edkey employees.

FSAs operate on a “use it or lose it” principle. Typically, funds contributed to an FSA must be used within the plan year. Eligible participants can contribute up to $3,200 per family per year for qualified medical expenses. Unused funds up to $610 can be rolled over to the next year.

If you decline company medical coverage or enroll in a non-HSA medical plan, you are eligible for an FSA.

Dependent Care Flexible Spending Account

A Dependent Care FSA gives you the opportunity to redirect a portion of your annual pay on a pre-tax basis to pay for dependent care expenses.

This account lets you use pre-tax dollars to pay for dependent care expenses. Eligible dependents are those you can claim on your Federal Income Tax Form 2441, including children under 13. Qualified care centers include dependent care centers, preschools, and qualified caregivers (not family members) who report income for taxes. Compare the tax benefits of this account with the child care tax credit and consult your tax advisor to choose the best option. Unused funds are forfeited at the end of the plan year.

If you decline company medical coverage or enroll in a non-HSA medical plan, you are eligible for an FSA.

Maintaining good oral hygiene is paramount to your overall health and wellness. That is why BPU has partnered with BlueKC to provide our full-time employees with affordable dental coverage.

Dependent Care Flexible Spending Account

A Dependent Care FSA gives you the opportunity to redirect a portion of your annual pay on a pre-tax basis to pay for dependent care expenses.

This account lets you use pre-tax dollars to pay for dependent care expenses. Eligible dependents are those you can claim on your Federal Income Tax Form 2441, including children under 13. Qualified care centers include dependent care centers, preschools, and qualified caregivers (not family members) who report income for taxes. Compare the tax benefits of this account with the child care tax credit and consult your tax advisor to choose the best option. Unused funds are forfeited at the end of the plan year.

If you decline company medical coverage or enroll in a non-HSA medical plan, you are eligible for an FSA.

7 Essential Tips for Maximizing your Flexible Spending Account (FSA)

Understanding Eligible Expenses

Know what expenses qualify for FSA reimbursement, such as co-pays, prescription medications, medical devices, and some over-the-counter items. Check the IRS list for specifics.

Plan Your Contributions Wisely

Estimate your annual healthcare expenses to determine your contributions. Avoid over-contributing to prevent forfeiting unused funds due to the “use-it-or-lose-it” policy.

Keep Track Of Deadlines

Be aware of your plan’s deadlines for incurring expenses and submitting claims. 

Save All Receipts

Retain receipts and documentation for all FSA-eligible purchases to substantiate claims and avoid reimbursement issues.

Monitor Account Balance Regularly

Keep an eye on your FSA balance throughout the year to ensure efficient use of funds and avoid last-minute spending.

Understand Reimbursement Process

Familiarize yourself with Wex’s reimbursement process, including how to submit claims, required documentation and typical turnaround times.

Educate Yourself On Special Circumstances

Be aware of events like employment or family status changes that might affect your FSA. Understand how these can impact your contribution limits and eligibility for certain expenses.