Tax Advantaged Plans (HSA & FSA)

Do you know the benefits of a health savings account (HSA) vs. a flexible spending account (FSA)? Check out the comparison table below to see which one is best for you.

Download Tax Advantaged Plans Comparison

 

Claims Administrator: HealthEquity | HSA Website: healthequity.com | Phone: 1-866-346-5800
Claims Administrator: HealthEquity | FSA Website: healthequity.com | Phone: 1-877-924-3967

     

    Tax-advantaged plans

    Health Savings Account (HSA)

    Flexible Spending Account (FSA)

    Health Savings Account (HSA)

    If you’re enrolled in the CDHP, you can use an HSA to pay medical and prescription costs tax free while investing in your retirement.[1]
    Flexible Spending Account (FSA)
    If you’re in Health1 or Health2, you can use a Health Care FSA to pay medical costs tax free. In any of the plan options, use a Dependent Care FSA to pay for child or elder care.[1]

    Tax Advantages

    Health Savings Account (HSA)

    HSAs are “triple tax-advantaged” plans:

    • Contributions are tax deductible and reduce your taxable income.
    • Withdrawals for eligible medical expenses are tax free.[1]
    • Earnings and interest invested in mutual funds grow tax free.
    Flexible Spending Account (FSA)

    Contributions are tax deductible and reduce your taxable income.

     

    Withdrawals for eligible medical expenses are tax free.[1]

    Company Contributions

    Health Savings Account (HSA)

    ERIE makes a yearly tax-free contribution to your account.
    Flexible Spending Account (FSA)
    ERIE does not contribute.

    Rollover Growth

    Health Savings Account (HSA)

    Your unused balance rolls over each year and continues to grow.
    Flexible Spending Account (FSA)

    FSAs are "use it or lose it."

     

    The unused balance does not roll over each year.

    Portable

    Health Savings Account (HSA)

    You keep the money forever.

     

    Your HSA stays with you if you leave ERIE, retire or change insurance.

    Flexible Spending Account (FSA)
    An FSA does not go with you if you leave ERIE or retire.

    Investment Opportunity

    Health Savings Account (HSA)

    Invest your savings in a mutual fund to grow tax-free interest and supplement your other retirement plans. Use your HSA to pay medical expenses now and in retirement, tax free.
    Flexible Spending Account (FSA)
    Because the account does not roll over or move with you, you can't invest FSA funds for the future.

    Tax Advantaged Comparison

    HSA[2]
    Health Care FSA
    Dependent Care FSA
    Available with these plan options:
    HSA[2]
    CDHP
    Health Care FSA

    Health2
    Health1

    Dependent Care FSA

    CDHP
    Health2
    Health1

    What you can contribute each year:[3]
    HSA[2]

    Employee only: Up to $4,400
    Other coverage levels: Up to $8,750
    Over 55: Additional $1,000

    Health Care FSA

    Up to $3,400 (pre-tax)
    Access the entire amount you elected right away.

    Dependent Care FSA

    Up to $7,500 (pre-tax)[4]
    Access funds as they accumulate.

    What ERIE contributes each year:
    HSA[2]

    Employee only: $750
    Other coverage levels: $1,500

    HSA seed money pro-rated based on hire date.

    Health Care FSA
    $0
    Dependent Care FSA
    $0
    Can be used for:
    HSA[2]
    Eligible out-of-pocket expenses under the health, dental or vision care plans.
    Health Care FSA

    Eligible out-of-pocket expenses under the health, dental or vision care plans. Includes over-the-counter medicines and menstrual care products.

    Dependent Care FSA
    Eligible dependent daycare expenses.
    If you don't use it by the end of the plan year:
    HSA[2]
    Your unused balance rolls over and continues to grow.
    Health Care FSA
    Your remaining balance is forfeited.
    Dependent Care FSA
    Your remaining balance is forfeited.
    If you leave ERIE or retire:
    HSA[2]
    The account goes with you.  Keep your HSA funds even if you change employers or health plans.
    Health Care FSA
    Your remaining balance is forfeited.
    Dependent Care FSA
    Your remaining balance is forfeited.
    Investment options:
    HSA[2]

    Once your account reaches $1,000, invest in mutual funds to grow your savings. Use it for medical expenses tax-free before or after retirement.

    Health Care FSA
    None
    Dependent Care FSA
    None
    1. 1. 

      *To participate, you must elect an HSA or FSA account during Open Enrollment, at time of hire, or when you have a qualified life event. See HSA and FSA coverage and contribution details in the charts above.

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    2. 2. 

      The HSA is NOT a part of the Health Protection Plan. The individual participant, not ERIE, owns his/her HSA.

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    3. 3. 

      The HSA limits are maximums and depend on various factors. Consult a tax advisor or IRS Publication 969, “Health Savings Accounts and Other Tax-Favored Health Plans,” for more information.

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    4. 4. 

      Highly compensated Employees (defined by the IRS as having earned income, which includes base compensation not withstanding any pretax deductions, bonuses, and any other taxable employee compensation, above $160,000 per year) may contribute up to $2,500. This lower limit is necessary so ERIE’s plan can comply with applicable IRS requirements.

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