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:

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.
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Compare the health accounts

HSA vs. FSA

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Access your account
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What’s eligible?

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-endNoYes
Money is always yours to keep Yes No
How much you can contribute in 2020
$3,550 individual / $7,100 family, including the Stryker contribution
$1,000 catch-up (for individuals age 55 or older)
$2,700
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. The HSA is a tax-free savings account that you can use to pay for eligible health expenses anytime, even in retirement.

Tax Advantage Put money in tax-free.

Put money in tax-free.

  • Contribute to your HSA through pre-tax payroll deductions.
  • Change your contribution amount anytime.

Tax AdvantageGet company contributions.

Get company contributions.

  • $500 for the UHC Premium HSA Plan and $250 for the UHC Basic HSA Plan for employees with individual coverage
  • $1,000 for the UHC Premium HSA Plan and $500 for the UHC Basic HSA Plan for employees who also cover dependents

Tax AdvantageCarry unused money over.

Carry unused money over.

  • All the money in your HSA is yours to keep, year after year.
  • You can build up savings to pay for future health care expenses. You can even invest your money once it reaches a minimum balance, which gives you the potential for tax-free earnings growth and a way to plan ahead for your medical costs in retirement. Watch a short video on investing your HSA.

Tax AdvantagePay for care tax-free.

Pay for care tax-free.

Keep in mind: 2020 contribution limits

The total amount you and Stryker can contribute to your HSA this year is:

  • $3,550 for individual medical coverage.
  • $7,100 for family medical coverage.

Add $1,000 to these limits if you’re age 55 or older.

HSA at a glance

icon 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. 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.

icon 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

icon 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 $2,700 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.
  • Unused money does not carry over at the end of each year — use it or lose it.