Pretax savings accounts

WHAT is a child and elder care FSA?

Are you paying for care for a child under the age of 13? Or caring for an elderly parent or dependent adult? A child and elder care FSA is a tax-advantaged account that helps you save on your dependent care expenses.

WHO can contribute to a child and elder care FSA?

Any benefits-eligible employee can establish a child and elder care FSA – even if you have an HSA or healthcare FSA.

WHY use a child and elder care FSA?

Money you contribute to the account is deducted from your salary before income taxes. This deduction reduces your taxable income, saving you money on taxes. Use the child and elder care FSA to pay for qualified expenses such as preschool, summer day camp and day care for a child or dependent adult. For a complete list of covered expenses, refer to IRS publication 503.  Read this overview about child and dependent care FSAs to deepen your understanding. These frequently asked questions may also be helpful.

IMPORTANT things to know

• FSA balances expire. It’s important not to contribute more than you spend, as unused funds do not roll over from year to year. However, there is a grace period for the 2025 benefit year until February 28, 2026, to incur expenses; claims for reimbursement for 2025 expenses must be submitted by April 30, 2026.
• You can contribute up to $5,000 to a child and elder care FSA if you file taxes as an individual or as a married couple filing jointly, or up to $2,500 if you’re married filing separately. You’ll choose your amount during annual benefits enrollment.

HOW it works

• You submit receipts and get reimbursed through Fidelity’s NetBenefits, available online and via a mobile app

WHAT is an HSA?

It is an easy and smart way to save money. An HSA pairs with an HSA-eligible medical plan to save on healthcare costs now and invest for future expenses.

WHO can contribute to an HSA?

Employees who enroll in the HSA Advantage medical plan. Additional IRS requirements are:

• You cannot be covered by other health plans that are not HSA-eligible.
• You cannot currently be enrolled in Medicare
• You cannot be claimed as a dependent on another person’s tax return.

More details about eligibility are in this overview about HSAs.

WHY use an HSA?

An HSA allows you to save money on a pretax basis to pay for qualified medical expenses for you and your dependents. Think of an HSA as a guaranteed discount on money you’re already going to spend on eligible healthcare expenses (braces, prescription drugs, copays for medical care and much more). An HSA also can be an effective way to save and invest for future healthcare expenses, such as in retirement. Read this overview about HSAs to deepen your understanding.

IMPORTANT things to know

• The health system contributes “seed” money to HSA accounts of employees who enroll in the HSA Advantage medical plan and the HSA. The money is contributed at the first of each year (or when newly eligible employees activate their accounts) to support your healthcare expenses. The health system contributes $500 for individual coverage; $1,000 for family coverage.
• Employees can contribute additional pretax dollars from each paycheck, up to $4,300 per year for individual coverage, $8,550 for family coverage. Employees 55 and older may contribute an additional $1,000.
• Funds roll over from year to year.
• You can invest money in your HSA through Fidelity.
• It’s yours. The money goes with you if you leave the health system.

HOW does it work?

There are multiple ways to use your HSA for payment or reimbursement of qualified medical expenses, including:

• Using a Fidelity HSA debit card for eligible purchases.
• Managing your plan through Fidelity’s NetBenefits, available online and via mobile app.
• A full list of options is part of the HSA reference guide.

 

WHAT is a healthcare FSA?

A healthcare flexible spending account (FSA) is a tax-advantaged account that allows you to pay for qualified medical expenses using pretax dollars.

WHO can contribute to a healthcare FSA?

Open to benefits-eligible employees who are not enrolled in the HSA Advantage medical plan. If you have any ongoing or expected medical needs to pay for in the upcoming year, using pretax dollars – through your FSA – saves money. The funds can also be used for over-the-counter items such as allergy and sinus medications, first-aid supplies, digestive health products and home COVID-19 tests.

WHY use a healthcare FSA?

Depending on the extent of your healthcare costs, an FSA can help you save a lot of money on taxes. The amount you decide to contribute to the account is deducted from your salary before income taxes, reducing your taxable income. Read this overview about healthcare FSAs to deepen your understanding. These frequently asked questions may also be helpful.

IMPORTANT things to know

• FSA balances expire. It’s important not to contribute more than you spend, as unused funds do not roll over from year to year. However, there is a grace period until Feb. 28, 2026, to incur expenses; claims for reimbursement for 2025 expenses must be submitted by April 30, 2026.
• You can use your FSA for expenses for you or your spouse, and any dependents you claim on your taxes. You also can use healthcare FSA funds for any adult children on your medical plan who will be 26 or younger on Dec. 31.

HOW does it work?

You can use an HSA debit card to pay upfront, or submit receipts and get reimbursed through Fidelity’s NetBenefits, available online and via a mobile app.

	Child and elder care flexible spending account (FSA)	Health savings account (HSA)	Healthcare flexible spending account (FSA)
Who can open the account?	Any benefits-eligible employee	Benefits-eligible employees who elect the HSA Advantage medical plan.	Benefits-eligible employees who are not enrolled in the HSA Advantage medical plan.
Why should I open an account?	To save for dependent care expenses expected in 2025. The money you set aside in the FSA is not subject to payroll taxes, so you take home more of your paycheck.	To save for future healthcare expenses in 2025 and beyond. Money goes in tax-free, is invested tax-free and can be used to pay for qualified medical, dental and vision expenses. The health system contributes $500 for employee-only coverage; $1,000 for family.	To save for qualified healthcare expenses expected in 2025. The money you set aside in the FSA is not subject to payroll taxes, so you take home more of your paycheck.
How can I use the money?	To pay for eligible expenses at licensed day or elder care centers, nursery schools, day camps and home care with valid tax ID numbers.	To pay for medical, dental and vision expenses including deductibles, coinsurance, prescriptions and other eligible expenses.	To pay for medical, dental and vision expenses including deductibles, coinsurance, prescriptions and other eligible expenses.
What if I don't use the money in 2025?	Any unused funds are forfeited. You have until April 30, 2026, to submit claims for eligible expenses incurred Jan. 1, 2025-Feb. 28, 2026.	All unused funds roll over each year.	Any unused funds are forfeited. You have until April 30, 2026, to submit claims for eligible expenses incurred Jan. 1, 2025-Feb. 28, 2026.
When can I use the money in my account?	Money you contribute from each paycheck is available as soon as it's added to your account.	Money you contribute from each paycheck is available as soon as it's added to your account. Funds provided by the health system are available the first week in January or, for newly eligible employees, as soon as their account is activated.	Your total annual elected amount is available for you to use beginning Jan. 1, 2025.
Can I invest the money in my account?	No	Yes	No
How much can I contribute?	$5,000 per year per family.	$4,300 individual, $8,550 family. Age 55 and over can contribute an extra $1,000.	$3,200