HSA

How an HSA can benefit you and your wallet

Whether you are a Health Savings Account (HSA) newbie or a seasoned account holder, brush up on best practices for using your account.

Just the basics

An HSA is a short-term or long-term tax-free saving for eligible out-of-pocket health care expenses. The account belongs to you and grows year over year. You maintain ownership, even if you leave the company. HSA money is yours to save and invest or spend on eligible health care expenses.

2023 HSA Contribution Limit
Employee: $3,850 / Family: $7,750

Translation: Create a rainy-day fund for future costs.

FSA

How an FSA can benefit you and your wallet

If you are new to the flexible spending account (FSA), or if you’ve been processing those receipts for years, here are some key details to help you make the most of your FSA.

Note: If you enroll in an HSA, you can only have a Limited Purpose FSA.

FSA Bottom Line

A health care flexible spending account, or FSA, is an employer-sponsored benefit that allows participants to set aside pre-tax funds from their paychecks to help them pay for out-of-pocket health care expenses throughout the year. FSAs are an annual plan-year benefit—meaning you have a specified amount of time to use your funds. You’ll want to spend down this account every year based on your plan’s rules.

2023 Contribution Limit: $2,850

Translation: You do not pay taxes on your FSA funds when you use them for qualified expenses, so it’s like a discount every time you use your Healthcare FSA funds on health-related expenses.

Limited Purpose FSA

How an LPFSA can benefit you and your wallet

A limited purpose flexible spending account, or LPFSA, is a special type of FSA. It’s an employer-sponsored benefit that allows participants to set aside pre-tax funds from their paychecks to help them pay for out-of-pocket dental and vision expenses throughout the year. LPFSAs have “use it or lose it” forfeiture provisions that require you to spend your LPFSA funds in the year you contribute them (or in a short grace period thereafter).

Earmarked Funds to Maximize Savings

You can pair your HSA with an LPFSA. This lets you pay for immediate dental and vision expenses, preserving your HSA for long-term savings and investment growth. The LPFSA helps you cover the immediate expenses while you keep on SAVING in your HSA, further lowering your taxable income.

2023 Contribution Limit: $2,850

Translation: Why enroll? Paying for your out-of-pocket costs for your dental and vision expenses allows you to preserve your HSA balance and to participate in a high deductible health plan with lower monthly premiums.

Dependent Care FSA

Already paying for dependent care?

If you pay for day care, after school care, day camp or elder care for any of your dependents, you could be SAVING money on those costs! Momentive offers a dependent care flexible spending account, or DCFSA, that allows you to set aside a little from each paycheck to go toward your dependent care for the year.

How does this help? You do not pay taxes on these funds when you use them for eligible expenses, which saves you 20-30% over paying for care outright.

2023 Contribution Limit: $5,000

Why enroll? Setting aside your funds in a dependent care account can save you between $1,000 – $1,500 a year!*

*contributing the maximum allowed for married, filing jointly at $5,000 at a 20% – 30% tax savings.