Health savings accounts (HSAs) and flexible spending accounts (FSAs) both offer valuable tax-savings opportunities when you use them to pay for eligible health care expenses, but there are important differences. Knowing more about these accounts can help you maximize your savings.
Your choice of medical plan affects which account is available to you. You may contribute to an HSA only when you enroll in the high-deductible health plan, or HDHP; participants are also eligible for a limited purpose FSA to help pay for eligible dental and vision care expenses. When you enroll in any other medical plan, you can contribute to a health care FSA. Carefully review the similarities and differences below and consider their benefits as part of your plan selection. (Regardless of plan, you may contribute to the dependent care FSA.)
Comparing your health spending accounts
| Health care flexible spending account | Health savings account | Limited purpose flexible spending account | |
|---|---|---|---|
| Medical plan it pairs with | CareFirst BCBS Core PPO CareFirst BCBS Enhanced PPO Kaiser Permanente HMO Plan (closed to new enrollees) | CareFirst HDHP | CareFirst HDHP |
| Use it to pay | Eligible health care expenses (medical, dental, vision) | Eligible health care expenses (medical, dental, vision) | Eligible dental and vision expenses only |
| Who contributes | You | You (and JHU if you earn $60K or less) | You |
| 2025 annual contribution limits | $3,200 (new limit to be announced soon) | Up to $4,300 per individual and up to $8,550 per family (including JHU contribution) | $3,200 (new limit to be announced soon) |
| Does the balance roll over? | You can roll over up to $640 of unused funds (minimum $30); remainder is forfeited | Yes | You can roll over up to $640 of unused funds (minimum $30); remainder is forfeited |
Important reminders
If you newly enroll in an FSA or HSA for 2025, you will receive a welcome package from WEX that includes a debit card and important information about how to manage your account.
If you are participating in an FSA for 2024, you can roll over $30 to $640 of your remaining health care balance to your 2025 health care or limited purpose FSA with WEX; any remaining dependent care FSA funds will be forfeited. It's a good idea to check your online account for any unsubstantiated FSA debit card claims before year-end. If your debit card has any unsubstantiated claims as of Jan. 1, your debit card will not be reactivated for 2025.
Any FSA claims incurred during 2024 must be submitted to WEX by April 30, 2025.
Ask ALEX
ALEX, JHU's interactive decision support tool, acts as a virtual benefits counselor to help you learn more about your options so that you can choose what's best for you. Leverage this tool to explore the benefits of each health plan and spending account.
ALEX is easy to use—just go to myalex.com/jhu and log in to learn more about your medical options, watch informational videos, and select the best plan for you. ALEX will ask you a few short questions about your family status and health care usage, calculate your potential out-of-pocket costs under each medical plan, and make recommendations to help you choose the one for you. All your responses to ALEX are confidential.
Posted in Benefits+Perks, Health+Well-Being
Tagged hr newswire
