What is an HSA?
A Health Savings Account (HSA) is a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) save for medical expenses. One must be enrolled in a HDHP to qualify for an HSA. The funds in an HSA can be used to pay for qualifying healthcare expenses such as deductibles, copayments, prescription drugs, and other eligible medical, dental, and vision expenses.

Rollover
Any unused funds in an HSA roll over from year to year, allowing the account balance to accumulate over time.

Contributions
Contributions to an HSA can be made by the account holder, their employer, or both. Contributions are tax-deductible, and there are annual limits set by the IRS. The account is owned by the individual and remains with them even if they change jobs.

Tax Benefits
Contributions to an HSA are made with pre-tax dollars (or tax-deductible if made with post-tax dollars), earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.

USD 475’s Health Savings Accounts are offered through Central National Bank. There is no fee associated with setting up an account and no minimum deposit required. All employees who wish to have HSA contributions payroll deducted must set one up with Central National.

Central National Bank
Phone: 785-238-4114

Address
802 N Washington St,
Junction City, Kansas, 66441

What is an FSA?
A Flexible Spending Account (FSA), also known as a reimbursement account, allows you to pay for a variety of out-of-­pocket health care and dependent care expenses pre-tax. Putting money into a FSA before you pay taxes on it saves you money by lowering your taxable income. The result? You pay less in taxes each year.

Healthcare Flexible Spending Account
A healthcare flexible spending account (FSA) is an employer-sponsored benefit that allows you to set aside pre-tax dollars into an account to be used for eligible medical expenses. Contributions to the FSA are deducted from your paycheck on a pre­tax basis, reducing your taxable income. You may increase your spendable income by an average of 30% of your annual contribution with the tax savings.

Limited Purpose FSA
A limited-purpose FSA is a flexible spending account that allows you to set aside pre-tax dollars for dental and vision expenses for you and your dependents, even if they are not covered under your primary health plan. You are eligible to open a limited-purpose FSA if you are enrolled in a health savings account (HSA).

Dependent Care FSA
A dependent care account (DCA) is a flexible spending account that allows you to contribute a portion of your paycheck before taxes are taken out to pay for qualified dependent care expenses so that you can work or look for work.

FSA’s (Flexible Spending Accounts) and HSA’s (Health Savings Accounts) are both accounts that allow you to set aside pre-tax money to pay for qualifying medical expenses, but they have some key differences.

Eligibility
• FSA: Anyone can have an FSA, whether they have insurance or not. However, typically, you can only get an FSA through your employer.

• HSA: To open an HSA, you must have a high-deductible health plan (HDHP).

Rollover
• FSA: FSA funds must typically be used within the plan year. Employees can roll over a specified amount into the following year.

• HSA: HSA funds roll over year to year and do not expire. This allows you to build up savings over time.

Portability
• FSA: The account is tied to your employer, so you lose access to your FSA if you change jobs.

• HSA: The account is portable, so it stays with you even if you change jobs or insurance plans.

Contribution Limits
FSAs and HSAs have different contribution limits. Refer to the Benefits Booklet for this year’s limit.