FSA, HSA & DCA: Pre-tax benefits with HealthEquity

This is the benefit for the US offices.

Questions

If you have questions regarding your health insurance, please email benefits@thoughtbot.com.

Eligibility

All employees working 30 or more hours per week are eligible to enroll in these pre-tax benefits immediately upon starting with thoughtbot. Your effective date is your start date.

Managing your HealthEquity Accounts and Submitting Claims

HealthEquity administers our 2020 FSA, HSA and DCA. HealthEquity has a feed with BlueCrossBlueShield (BCBS). If you are enrolled in a thoughtbot medical plan with BCBS, your BCBS claims will feed directly to HealthEquity allowing for you to substantiate your FSA and HSA claims with less paperwork. Additionally, you’ll be able to see the balance of your HealthEquity accounts when you log in to BCBS’s MyBlue Member portal.

Register with HealthEquity to access your account. Once logged in, you can submit claims, enter your direct deposit info, check your balances and more.

Claims can be submitted on HealthEquity’s website or by mail.

Flexible Spending Account (FSA)

We provide access to a Flexible Spending Account - which allows you to put aside up to $2,750 per year in 2020, pre-tax to pay for eligible medical expenses. The 2019 yearly limit was $2,700. The FSA has a minimum election of $500. The IRS allows up to $500 to rollover to the next plan year. There is a 90 day run-out period at the end of the year to submit receipts for expenses incurred during the plan year. Any funds over $500 that are not claimed during the 90 day grace period will be lost.

Our 2020 FSA is administered by HealthEquity. You will receive a FSA debit card from HealthEquity if you enroll. Your account will show the full balance of your elected yearly contribution immediately, and this amount can be used to pay for expenses immediately. The account will be funded in even payroll withdrawals throughout the year. Please see the FSA Member Guide for details on using your account.

FSA funds can only be used for expenses incurred while you are employed at thoughtbot. You cannot take unused funds with you when your employment ends.

Your 2019 FSA

Our FSA was administered by WageWorks. The 2020 FSA is administered by HealthEquity.

If you have money remaining in your 2019 FSA, you have until March 30th to submit FSA claims to WageWorks for expenses incurred in 2019. Please see below for details on what will happen to your rollover funds based on what plans you enroll in for 2020.

  • 2019 FSA with WageWorks —> Enrolled in 2020 FSA with HealthEquity

    If you have remaining funds in your FSA account at the end of March and you are enrolled in the 2020 FSA, your FSA rollover funds of up to $500 will be rolled into your 2020 FSA with HealthEquity in April of 2020.

  • 2019 FSA with WageWorks —> Enrolled in 2020 HSA with HealthEquity

    If you have remaining funds in your FSA account at the end of March and you are enrolled in the 2020 HSA, your FSA rollover funds of up to $500 will move to a Limited Purpose FSA. A Limited Purpose FSA is HSA compatible and can only be used for vision and dental expenses. Any funds up to $500 remaining in your Limited Purpose FSA at the end of 2020 will rollover into a 2021 Limited Purpose FSA.

Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-free account created for the benefit of those on a high deductible health plan. Contributed funds accumulate on a tax-free basis, and can be used towards eligible medical expenses. There are no rollover limits with an HSA. Once the money is in the account, it is yours. If you leave thoughtbot, you will take your remaining HSA funds with you.

Annual HSA Contribution limits for 2020:

  • $3,550 for an individual plan
  • $7,100 for a family plan
  • If you are age 55 or older, you may contribute an additional $1,000

You will have the opportunity to change your HSA election each quarter.

If you enroll in the eligible plan, thoughtbot will contribute to your HSA throughout the year: $750 for individual plans and $1250 for family plans. thoughbot’s contributions are prorated per pay period.

Our 2020 HSA is administered by HealthEquity. You will receive a HSA debit card from HealthEquity if you enroll. The account will be funded in even payroll withdrawals throughout the year. Please see the HSA Member Guide for details on using your account.

Read more about the 3 tax advantages of an HSA and winning with an HSA.

Dependent Care Account (DCA)

A Dependent Care Account (DCA) allows you to contribute to pre-tax dollars via payroll deductions and use those funds for custodial care of dependents while you are at work. This can include daycare, preschool, summer day camp, babysitting while you are at work, adult daycare and more for children and adult dependents. Please see the list of eligible DCA expenses.

The DCA plan year runs on a calendar year basis. Funds must be used for expenses incurred during the calendar year. DCA funds do not rollover. Claims must be filed within 90 days of the end of the plan year.

The maximum contribution per household is $5,000 if you are single, or you are married and filing a joint tax return, or $2,500 if you are married, filing separate tax returns. Money is deposited into your account each time it is deducted from your paycheck.

Our 2020 DCA is administered by HealthEquity. HealthEquity does not issue debit cards for the DCA. Claims must be submitted online or through the mail.

Funds can only be used for expenses incurred while you are employed at thoughtbot. You cannot take unused funds with you when your employment ends.

Changing Coverage

You have 30 days to make changes to your enrollment after life events (marriage, childbirth, change in spousal coverage, etc). Otherwise changes must be made during the open enrollment period.

Additionally, if you are enrolled in the HSA, you can change your contribution amount at the end of each quarter.

To change your enrollment following a life event, visit Employee Navigator. We may follow up with you to collect additional information necessary to make the requested change.

Termination

FSA and DCA funds can only be used for charges incurred while you are employed at thoughtbot. You will have 90 days from when your employment ends to submit claims for charges incurred during your employment.

HSA funds are portable. You still own the account after your employment ends. You will be able to continue to use it for eligible medical expenses.

For more information, contact benefits@thoughtbot.com.