Tax-Advantaged Accounts Overview

Discover the tax-advantaged accounts that can help you save money and pay for qualified health expenses with pre-tax money

Health Savings

Account (HSA)

  • Employee-owned savings account

  • Pairs with the Cigna OAP 2000 HSA Plan

  • Use funds to pay for qualified health expenses not covered by your plan

  • Funds roll over, year to year even if you change coverage, retire, etc.

  • Gain triple tax advantages

Health Flexible

Spending Account

  • Employer-owned spending account

  • Use funds to pay for qualified health expenses not covered by your plan

  • Use it or lose it

  • Two types:  General Purpose Health FSA and Limited Purpose Health FSA

Dependent Care Flexible

Spending Account

  • Employer-owned spending account

  • Use funds to pay for qualified child and elder care expenses

  • Use it or lose it

Commuter Benefits

These accounts are easy to use. Once you are enrolled and make contributions to your accounts, you will receive a debit card that is linked to the account funds.  Simply use the card to pay for qualified health expenses. All accounts are administered by Discovery Benefits.

Mid-Year Election Changes for Dependent Care FSA

  Between now and September 30, 2021, you are allowed to make mid-year election changes to your Dependent Care FSA without submitting a qualified status change document. Go to Lumity and select the "Special Enrollment" event from the drop down menu to make this change. Please also send an email to Enjoy to explain the change.

 

Health Savings Account (HSA)

Health Savings Account (HSA) is an employee-owned savings account that can be used to pay for qualified medical, dental or vision expenses not covered by the health plans. 

 

HSA must be paired with a high-deductible health plan (Enjoy’s Cigna OAP 2000 HSA plan qualifies for this purpose - see Medical Plans for details). 

 

HSA is easy to use – it works like a debit card that is linked to the funds in your account.

Enjoy contributes $50/month to employee’s HSA account. HSA funds roll over each year, allowing you to build a savings account for health care expenses or for retirement:

  • Once your HSA balance reaches $1,000, you may invest these funds and let them grow tax-free

  • After age 65, you can spend HSA money on unqualified expenses without paying a tax penalty, but you are subject to applicable income taxes

Why HSA?

Triple Tax Benefit

  • Contributions to an HSA (from both you and Enjoy) are tax-free*
     

  • Interest and investment earnings on the account are tax-free*
     

  • Funds withdrawn from the account for qualified expenses are tax-free*

* HSA funds are not taxed at a federal income tax level when used appropriately for qualified expenses. Most states recognize HSA funds as tax-free with few exceptions. Consult a tax advisor for more information.

Plan contributions

Enjoy Tax Advantaged accounts HSA contri

* Individuals age 55 or older are able to make a catch-up contribution of $1,000 over the 2021 IRS limit. In addition, individuals enrolled in Medicare are not eligible to contribute to HSA.

 

Health Flexible Spending Accounts (Health FSA)

Healthcare Flexible Spending Account (Health FSA) is an employer-owned, tax-advantaged account that allows you to set aside a portion of your income on a pre-tax basis to pay for qualified health expenses.

Enjoy has increased the grace period to spend your FSA funds from 2.5 months to 12 months after the plan year ends. This means you have until December 31, 2021 to incur qualified expenses and submit them to Discovery Benefits to get reimbursed from your 2020 FSA funds. 

If you wish to make pre-tax contributions to an FSA account, you must pro-actively enroll in the plan each year; your election from the prior year does not automatically rollover

Why Health FSA?

  • Contributions to an FSA are tax-free

  • All of your funds are available on the first day of the plan year

There are two types of Health FSA:

 
Purposes

HSA Restriction

Maximum Election

General Purpose Health FSA

To pay for qualified medical, dental and vision expenses

You are not allowed to be enrolled in HSA and General Purpose Health FSA in the same year

$2,750 in 2021

Limited Purpose Health FSA

To pay for qualified dental and vision expenses

You are allowed to be enrolled in HSA and Limited Purpose Health FSA in the same year

$2,750 in 2021

 

Dependent Care Flexible Spending Accounts

Dependent Care Flexible Spending Account (Dependent Care FSA) is an employer-owned, tax-advantaged account that allows you to set aside a portion of your income on a pre-tax basis to pay for qualified dependent care expenses, such as preschool, summer day camp, before / after school programs, and child or adult daycare.

Enjoy has increased the grace period to spend your FSA funds from 2.5 months to 12 months after the plan year ends. This means you have until December 31, 2021 to incur qualified expenses and submit them to Discovery Benefits to get reimbursed from your 2020 FSA funds. 

If you wish to make pre-tax contributions to an FSA account, you must pro-actively enroll in the plan each year; your election from the prior year does not automatically rollover. 

Why Dependent Care FSA?

  • Contributions to an FSA are tax-free

Plan highlights

 
Purposes
Maximum Election*

Dependent Care Flexible Spending Account

To pay for qualified child and elder care expenses

$2,500 if you file taxes as married and filing separately (2021 limit)

$5,000 if you file as married and filing on a joint tax return (2021 limit)

* Please note that, if you make more than $130,000/year, you may be subject to a lower annual limit on the Dependent Care FSA election according to IRS rules.