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

This is the benefit for employees in the US.

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.

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 2021, pre-tax to pay for eligible medical expenses. 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 run out period will be lost.

Our 2021 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.

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 2021:

$3,600 for an individual plan
$7,200 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. Changes should be entered in Employee Navigator.

If you enroll in the eligible plan, thoughtbot will contribute to your HSA throughout the year: $750 for individual plans and $1500 for family plans. thoughtbot’s contributions are prorated per pay period.

Our 2021 HSA is administered by HSA Bank, which connects directly to Cigna. You will receive a HSA debit card 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. If you move please update the address directly on the HSA Bank portal in addition to Paycor.

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 2021 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

Normally you have 30 days to make changes to your enrollment after life events (marriage, childbirth, change in spousal coverage, etc). This year we are allowing changes to your enrollment without a qualifying life event (see [2021 COVID Relief Bill for DCA] below).

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.

2021 COVID Relief Bill for DCA

Under the new Consolidated Appropriations Act 2021 we have made the following changes for DCA to support caregivers who did not get to use remaining DCA funds, went without childcare, will go without childcare, or did not enroll in DCA in 2021 due to pandemic uncertainty:

Any remaining funds in 2020 DCA will carry over to 2021
Any remaining funds in 2021 DCA by end of 2021 will carry over to 2022
Changes to DCA enrollment and elections will be allowed in the year 2021 without a qualifying life event (elections cannot be reduced to an amount less than your year-to-date contributions or reimbursements)

[Cigna Open Access Plus $2000/$4000 + HSA]: https://www.dropbox.com/home/business/Benefits/Health%20Insurance-%20Cigna/2021%20-%20Cigna?preview=HSA+OAP+%242000-%244000+SBC+1.1.21.pdf [2021 COVID Relief Bill for DCA]: https://github.com/thoughtbot/handbook/blob/ey-update-DCA2021/benefits/us/health/2021/fsa-hsa-dca.md#2021-covid-relief-bill-for-dca