Overview
You can save money on healthcare and dependent care expenses by paying for them with tax-free accounts. Using these accounts effectively will help you take full advantage of their money-saving potential.
Tax-advantaged accounts:
Health Savings Account (HSA)
Healthcare Flexible Spending Account (HCFSA)
Day Care (child and adult) Flexible Spending Account (DCFSA)
Key features at a glance:
Tax-free money
Money goes in tax-free and comes out tax-free when it’s used for eligible expenses.
Convenient payroll deductions
Contribute to your accounts easily and effortlessly.
Helpful budgeting tool
Plan for upcoming expenses by setting aside money each paycheck.
Coverage Details
View this example to see how much contributing to an HSA or FSA could save you.
Tax-advantaged accounts make a difference!
See how much contributing to an HSA or FSA could save you over the course of a year.
| Tax savings on $2,000 contribution to HSA or FSA | |
|---|---|
| 28% in federal income tax | $560 |
| 5% in state income tax | $100 |
| 7.65% in Federal Insurance Contributions Act (FICA) tax | $153 |
| Total tax savings for year with an HSA or FSA | $813 |
This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.
Compare the health accounts
| HSA | Healthcare FSA | |
|---|---|---|
| Available with |
UHC Premium HSA Plan
UHC Basic HSA Plan
|
Any plan as long as you aren’t participating in an HSA, too |
| Receive contribution from Stryker | Yes | No |
| Change your contribution amount at any time | Yes | No |
| Access only funds that have been deposited | Yes | No — you can access all of the funds at the beginning of the year |
| Use account money for | All eligible healthcare expenses | All eligible healthcare expenses |
| “Use it or lose it” at year-end | No | Yes |
| Money is always yours to keep | Yes | No |
| How much you can contribute in 2024 |
$4,150 individual / $8,300 family, including the Stryker contribution
$1,000 catch-up (for individuals age 55 or older)
|
$3,050 |
| Ability to earn interest and invest your balance | Yes | No |
Health savings account
Employees in the UHC Premium HSA Plan and UHC Basic HSA Plan can contribute money to a Health Savings Account (HSA) through OptumBank, as long as you are not enrolled in any other disqualifying coverage. The HSA is a tax-free savings account that you can use to pay for eligible health expenses anytime, even in retirement. For information and eligibility and how much you can contribute, refer to the OptumBank HSA User’s Guide. Keep in mind, if you’re not enrolled for the entire year, how much you contribute may be limited.
Keep in mind: 2024 contribution limits
The total amount you and Stryker can contribute to your HSA this year is:
- $4,150 for individual medical coverage.
- $8,300 for family medical coverage.
Add $1,000 to these limits if you’re age 55 or older.
HSA at a glance
Triple tax advantage
The HSA has a triple tax advantage that trumps even a 401(k) or Roth IRA. Money goes in tax free for federal taxes (state income taxes may apply in some states), builds earnings tax free, and comes out tax free when used on eligible expenses.*
*Money in an HSA can be withdrawn tax free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.
Getting started
To open an HSA through Stryker, you must be enrolled in the UHC Premium HSA Plan or the UHC Basic HSA Plan and meet HSA eligibility requirements. If you’re not enrolled in the UHC Premium HSA Plan or the UHC Basic HSA Plan, you may enroll during the next annual enrollment period.
Think long term!
A married couple is expected to spend $350,000 on health care costs during retirement, even with Medicare coverage. If you contributed the annual maximum to your HSA for 30 years, your account could grow to $313,000. And don’t forget, Stryker’s contributions help you reach the annual limit faster!
Source: EBRI.org. Estimate of future account value assumes a 5% rate of return and no withdrawals.
Flexible spending accounts
Using an FSA is like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money.
There are separate FSAs for health care and dependent care.
FSAs at a glance
Use your money!
With FSA money, you use it or lose it. If you have a balance left in your FSA as year-end approaches, try to spend as much of it as you can on eligible expenses. Request reimbursement or manage your account on the UnitedHealthcare website.
Healthcare FSA
- Contribute up to $3,050 annually to help cover eligible medical, dental and vision expenses.
- Select your annual contribution amount during annual enrollment. You can only change your contribution amount during the year if you experience a qualifying life event.
- Spend your money by using your FSA debit card or request reimbursement for payments you’ve made.
- Your entire annual contribution amount is available to you from the beginning of the plan year.
- Unused money does not carry over at the end of each year — use it or lose it.
Day Care (Child or Adult) FSA
- Contribute up to $5,000 a year to help cover your eligible day care (child or adult) expenses, including child care for children up to age 13 and care for dependent elders.
- Use the UnitedHealthcare web site to reimburse yourself for payments you’ve made.
- Select your annual contribution amount during annual enrollment. You can only change your contribution amount during the year if you experience a qualifying life event.
- There is a grace period allowing you to use funds during the 2.5 months following the end of the plan year. Unused money at the end of the grace period is forfeited – use it or lose it.