Question-

I have investments with my HSA at HSA Bank. Since we are moving to EBC in 2025, is there anything I need to do with my investments prior to the transfer?

Answer-

Yes, you do need to take action, and investments need to be cashed out/liquidated by 1/27/25.

Please follow the steps below to ensure this is completed ( more information will be provided in the weeks ahead) -

• • Log into your investment platform and liquidate all funds tied up (not in cash) so that they are available to transfer.
  • Once the funds are in the investment cash account, a transfer can be made to move the funds into the HSA Bank account from the investment cash account.
  • There is no daily transfer limit.
  • After the transfer to the HSA Account is complete and your brokerage account is at a $0.00 balance, please call HSA Bank to close your brokerage account.
    • HSA Bank Client Assistance Center: (800) 357-6246, Open 24/7 

Question –

I am considering transitioning from the Copay Plan to the High Deductible Plan, but I have a Health Care FSA. What will happen to those funds?

Answer –

The funds in your Health Care Flexible Spending Account (FSA) will roll over (subject to the annual IRS roll over maximum) to a Limited Purpose Flexible Spending Account (LFSA) in the following plan year and will be available to use on dental and vision expenses only.

Question –

How much does Visions contribute to the HSA?

Answer –

For employees on the High Deductible Health Plan, Visions contributes to a Health Savings Account on the following schedule:

**This chart shows prorated amounts for the Initial Employer Contribution per hire date for New Hires

Question –

What is a Health Savings Account (HSA) and why is it so awesome??

Answer –

The Health Savings Account (HSA) is a tax-advantaged employer and employee funded account for employees on our High Deductible Health Plan that has several advantages:

• • Funds in the account belong to the employee - if you leave employment or retire, the account goes with you
  • Funds roll over year to year, accumulate, and can be invested
  • You can contribute to the IRS maximum is met between employer and employee contributions
  • Funds can be used for any IRS-Qualified medical expense, including medical, dental, and vision expenses
  • You do not need to provide documentation to the vendor when you use the account
  • You'll want to keep your receipts for your records, but you do not need to submit them anywhere when you use the account

Question –

If I can use my HSA for all the expenses I currently pay with my Standard FSA (medical/dental), & if I don’t plan to make the maximum allowed contributions, does it benefit me to contribute to a Limited Purpose FSA (dental/vision) in 2025?

Answer –

Employees will receive the most benefit by contributing funds to their Health Savings Account, which will earn an employer match, roll over year to year, and accumulate interest.

Typically, contributing additional funds to a Limited Purpose FSA benefits an employee in the following situations:

• • The employee looking to max out their HSA and then have access to additional pre-tax funds for planned dental and vision expenses during the plan year
  • The employee is looking to have the full amount they are set to contribute over the entire year available up front for use on 1/1 of the plan year

Question –

If I was looking to save money for my child's braces and I am on the High Deductible Health Plan, where would I want to add those funds? The HSA or the Limited Purpose FSA?

Answer –

Both plans have advantages, so there's no one-size-fits-all answer here. It depends on how much money you're looking to save for your child's braces, when the expenses for the braces are going to be incurred, and how much money you know you're going to spend in the plan year.

The Limited Purpose FSA funds must be used for services incurred in the same plan year they were contributed. So, if your child is getting braces put on in 2024 and you know you'll be paying for the cost of those services in 2025, the Limited Purpose FSA could be a good option. If you elect the Limited Purpose FSA, you will lock into the amount you're contributing per pay for the entire plan year during Open Enrollment and will be unable to update it without a qualifying life event.

If your child already has braces and/or there are ongoing costs from services incurred over the course of multiple years, the HSA may be a better option. You'll receive the initial employer deposit plus the employer match on your contributions, and you'll be able to change the amount you contribute per pay whenever you'd like.

Alternately, if your goal is to grow your HSA balance as much as possible and you are planning to contribute to your HSA until you have reached the IRS maximum between employer and employee contributions ($4,300 Single or $8,550 2-Person/Family), you can contribute additional funds into the Limited Purpose FSA to the IRS maximum (projected 2025 limit $3,300) if you know you're going to be spending them.

Ultimately, it comes down to making a choice that works for each individual's set of circumstances.

Question –

Do all the HSA funds get deposited up front in the beginning of 2025, or does it build throughout the year with payroll deposits?

Answer –

Funds are deposited in two phases.

• • Phase 1: Initial Deposit
  • In the beginning of the year, accounts for employees electing HDHP coverage will be funded with $675 for Single coverage and $1,350 for 2-Person/Family coverage.
  • Phase 2: Matching
  • An employee can earn an additional $225 or $450 contribution from VFCU by contributing their own funds pre-tax through payroll. VFCU will match employee contributions dollar for dollar until VFCU has contributed a total of $900 for Single coverage and $1,800 for 2-Person/Family coverage.

Employees can contribute their own funds through payroll up to the IRS maximum. Employees can change their contribution amounts at any point in the year - they do not need to contribute the same amount each pay period or for the entire year.

Funds are available for use in the HSA as they are deposited. Employees will have immediate access to the initial employer deposit, plus their own and matching funds as they are deposited.

Question –

What is an FSA's run out period?

Answer –

The run-out period is the amount of time you have to submit expenses incurred in the prior plan year after the plan year ends.

The funds in a Flexible Spending Account must be used within the same plan year they're contributed. For instance, if you have a $640 roll-over from a previous plan year and $2,000 in contributions in the current year, you have $2,640 to spend on eligible expenses between January 1 and December 31 of the plan year. Then, you've got the plan's run out period - January 1 to March 31 of the following year - to submit expenses incurred during the plan year for reimbursement.

The important thing to note is you must incur the expense during the plan year. As long as you incurred the expense during the plan year, you can submit the claim during the run-out period - January 1 to March 31 following the prior plan year.

Question –

Can I elect to have beneficiaries on my Health Savings Account?

Answer –

Not only can you elect to have beneficiaries on your HSA, you should!

Since a Health Savings Account can rollover year after year and into retirement, you want to treat this like you would any other investment account. Protect your asset and name a beneficiary! In 2025, log into your EBC account and take action!

Question –

Life Event changes mid-year and the impact to Deductibles and Out of Pocket

Answer –

If a life event occurs mid-year, and enrollment changes from an individual plan to a family plan, do the previously paid deductibles reset?

If the policy changes from Individual to Family – the existing Deductible (Ded) and Out of Pocket Max (OOPM) will apply to the family Ded/OOPM going forward.