Health Savings Account (HSA)
Administered by: HealthEquity
Available only to employees who enroll in High Deductible Health Plan (HDHP). Your current year HSA election will automatically continue into next year unless you cancel or make changes.
Western Governors University offers you the following accounts and encourages you to take full advantage of their money-saving potential. You can enroll in them in Workday as a new hire, during Open Enrollment, or if you have a qualifying life event.
Administered by: HealthEquity
Available only to employees who enroll in High Deductible Health Plan (HDHP). Your current year HSA election will automatically continue into next year unless you cancel or make changes.
Administered by: HealthEquity
Available to employees without an HSA. Your current FSA election(s) always expire at the end of the calendar year and do not carry over into the next year. You must re-elect FSA participation every year.
Administered by: HealthEquity
Available to employees who enroll in the High Deductible Health Plan (HDHP) and elect an HSA. Your current FSA election(s) always expire at the end of the calendar year and do not carry over into the next year. You must re-elect FSA participation every year.
Administered by: HealthEquity
Available to all employees with children under the age of 13 or dependents physically or mentally unable to care for themselves. Your current FSA election(s) always expire at the end of the calendar year and do not carry over into the next year. You must re-elect FSA participation every year.
Money goes in tax-free* and comes out tax-free when it’s used for eligible expenses.
Contribute to your accounts easily and effortlessly.
Plan for upcoming expenses by setting aside money each paycheck.
An HSA allows account owners to pay for current healthcare expenses and save for those in the future. One advantage is that contributions are tax-deductible, or if made through a payroll deduction, they are pretax. Also, the interest earned is tax-free.
Ownership: The money in your HSA is always yours. Unspent balances simply carry over from year-to-year until spent.
Flexibility: You decide when and how much to contribute to your account. In addition, you can choose to use your HSA dollars now or save for future expenses.
Triple Federal Tax Benefits:
Portable: Your money stays put even if you change health plans, companies, or you retire. Investment Opportunities: You can increase your HSA balance through several mutual fund investment options provided by HealthEquity.
Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax, and $153 in payroll tax. So, by contributing that $2,000 to his HSA or FSA, he’ll get $733 in tax savings for the year.
Without an HSA or FSA, Tom would pay … | Savings |
---|---|
24% in federal income tax | $480 |
5% in state income tax* | $100 |
7.65% in payroll tax | $153 |
His total tax savings for the year with an HSA or FSA | $733 |
This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.
*Contributions are not subject to federal income tax. However, HSA contributions are currently subject to state income tax in CA and NJ. Consult with your tax advisor to understand the potential tax implications of enrolling in an HSA and/or FSA.
A Health Savings Account (HSA) empowers you to build savings for healthcare expenses in a tax-advantaged account. Paired with our qualified High Deductible Health Plan, you and your family can plan, save, and pay for qualified healthcare expenses using an HSA. HSAs are similar to retirement accounts in that contributions to them are never forfeited and any accumulated unused balance carries over year-to-year. HSAs are portable when you move jobs or retire, the balance can be invested in mutual funds, and there are survivor benefits.
To enroll in an HSA Plan, you must meet the following requirements (see IRS Publication 969):
The HSA has a triple-tax advantage that can be more effective than a traditional retirement plan. And, Western Governors University will contribute to your HSA, too!
Federal tax rules set the maximum HSA contribution limit for each year. Keep in mind, the maximum amount you and WGU can contribute to your HSA is determined by annual limits that the IRS sets. In 2024, the total contribution limits are:
Add $1,000 to these limits if you’re age 55 or older.
Important: The total amount that can be contributed to your HSA for 2024, including any WGU contributions you receive, is summarized in this illustration:
Coverage Level | WGU Contributions* | Your Contributions (Under age 55) | 2024 IRS Limits** |
---|---|---|---|
Employee Only | $1,750 | $2,400 | $4,150 |
Employee + Dependents | $2,750 | $5,550 | $8,300 |
* Assumes for the entire year: (1) You are in the same coverage level under the WGU HDHP medical option all year, (2) Maximize the per-payroll WGU matching contributions, and (3) Earned the maximum annual HSA contribution under Wellbeing Program.
** Add $1,000 if age 55 or older
In order to establish and contribute to an HSA, you:
You should review IRS rules for making HSA contributions if you will turn age 65 during the year. For more information, see IRS Publication 969.
Use your HSA together with a Limited Purpose FSA for additional tax savings. With the Limited Purpose FSA, only dental and vision expenses are allowed.
To contribute to an HSA, you must enroll in the High Deductible Health Plan (HDHP). You will elect your HSA contribution amount during enrollment. You can then manage your account through the HealthEquity website.
As you start using your account, keep in mind that you can only spend money that has actually been deposited into your account — your entire annual contribution amount is not available to you from the beginning of the plan year. Your HSA balance will grow as deposits are made from each paycheck.
HSAs are individually owned and controlled by you. Accordingly, it is your responsibility to ensure you do not contribute more than the allowable maximum.
Flexible Spending Accounts (FSAs) help you make your money go further. You can set aside before-tax dollars through convenient payroll deductions to pay for eligible healthcare and dependent care expenses. You must enroll each year you want to participate. Any unused healthcare FSA amounts up to $610 will carry over to the next year, but any funds above this amount are forfeited if you do not incur expenses on or before December 31 and submit those expenses for reimbursement by March 31. Our FSAs are administered by HealthEquity. Your FSA options are as follows:
Healthcare FSA | Limited Purpose FSA | Dependent Care FSA | |
---|---|---|---|
Who is eligible? | Anyone without an HSA can participate in the full Healthcare FSA. | Employees who enroll in the HDHP medical plan and elect an HSA. | Employees with children under the age of 13 or dependents physically or mentally unable to care for themselves. |
How does it work? | You can use these funds to pay for eligible medical expenses like deductibles, copays, and coinsurance for you and your eligible dependents. You can deposit up to $3,200 in 2024 to pay for eligible medical, dental, and vision expenses. The entire amount you elect is available at the beginning of the plan year or your initial eligibility date, whichever is later. Expenses must be incurred by December 31. You have until March 31 to submit eligible expenses for reimbursement. |
If you enroll in the HDHP medical plan and elect to enroll in an HSA, you are eligible for a Limited Purpose FSA. This FSA can be used to pay for eligible dental and vision expenses for you and your eligible dependents. Medical expenses are reimbursed solely through your HSA. You can deposit up to $3,200 in 2024 for eligible dental and vision expenses. The entire amount you elect is available at the beginning of the plan year or your initial eligibility date, whichever is later. Expenses must be incurred by December 31. You have until March 31 to submit eligible expenses for reimbursement. |
You can use these funds to pay for eligible day care expenses for eligible dependents including, but not limited to, payments to qualified day care centers, preschool costs (up to, but not including kindergarten), after school care, and elder care. This account cannot be used for dependents’ medical expenses. You can deposit up to $5,000 in 2024 into the Dependent Care FSA ($2,500 if you are married and you and your spouse file individual income tax returns). The balance in the account will accumulate with payroll deductions and you will have access to your YTD contributions at the time of reimbursement. Expenses must be incurred by December 31. You have until March 31 to submit eligible expenses. Please note that you must choose between a Dependent Care FSA and the Child Care Tax Credit; you cannot use both. |
What types of expenses are eligible | Medical, Dental, Vision | Dental, Vision | Day care for eligible dependents |
Find a complete list of eligible expenses from the IRS at irs.gov or 800-829-3676. (Search or ask for Publication 502 for healthcare expenses, Publication 503 for dependent care expenses.)
With FSA money, you “use it or lose it.” If you have a balance left in your FSA as year-end approaches, try to spend as much of it as you can on eligible expenses. Request reimbursement or manage your account on the HealthEquity website.
You can carry over up to $610 of the unused balance in your Healthcare FSA, Limited Purpose FSA, and/or Dependent Care FSA from 2024 to 2025. You can still elect to contribute up to the maximum annual amount for 2025 during Open Enrollment. Request reimbursement or manage your account on the HealthEquity website.
A Health Care FSA is available to employees who enroll in the Traditional Low Deductible Plan (LDHP) or do not elect medical coverage. You can contribute up to $3,200 for the year through before-tax payroll deductions to help cover eligible medical, dental, and vision expenses.
A Limited Purpose FSA is available only to employees in the HDHP to offer additional tax-saving opportunities. You can contribute up to $3,200 for the year through before-tax payroll deductions. This account can be used for eligible dental and vision expenses only.
A Dependent Care FSA is available to all employees. You can contribute up to $5,000 for the year through before-tax payroll deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders.
HSA | Limited Purpose FSA | Healthcare FSA | Dependent Care FSA | |
---|---|---|---|---|
Available with … | High Deductible Health Plan (HDHP) | High Deductible Health Plan (HDHP) |
Traditional Low Deductible Plan (LDHP) (Also available if you waive medical coverage) |
Your employment at WGU |
Receive company contribution | Yes | No | No | No |
Change your contribution amount anytime | Yes | No | No | No |
Access your entire annual contribution amount as needed | No | Yes | Yes | No |
Access only funds that have been deposited | Yes | No | No | Yes |
Use account money for… | All eligible health care expenses including Medical, Dental, and Vision | Only Dental and Vision expenses | All eligible health care expenses including Medical, Dental, and Vision | Eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders |
“Use it or lose it” at year-end | No | Any unused healthcare FSA amounts up to $610 will carry over to the next year, but any funds above this amount are forfeited if you do not incur expenses on or before December 31 and submit those expenses for reimbursement by March 31. | Any unused healthcare FSA amounts up to $610 will carry over to the next year, but any funds above this amount are forfeited if you do not incur expenses on or before December 31 and submit those expenses for reimbursement by March 31. | Expenses must be incurred by December 31. You have until March 31 to submit eligible expenses. |
Unused money is always yours to keep | Yes | No | No | No |