Tax-Advantaged Accounts
Overview
You can save money on health care 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
Who’s eligible?
All regular full-time employees are eligible for a tax-advantaged account. The Health Savings Account also requires enrollment in the HDHP medical plan. You may enroll within 31 days of your hire date, during our annual open enrollment period, or within 31 days of a qualified life event. Learn more about life events.
Tax-advantaged accounts:
- Health Care Flexible Spending Account
- Dependent Care Flexible Spending Account
- Health Savings Account
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.
Compare the accounts
Access your account
What’s eligible?
How much could you save?
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 | |
|---|---|
| 24% in federal income tax | $480 |
| 5% in state income tax* | $100 |
| 7.65% in payroll tax | $153 |
| Total tax savings for the year with an HSA or FSA | $733 |
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.
* Contributions are not subject to federal tax. However, HSA contributions are currently subject to state tax in AL and CA, both HSA and FSA contributions are subject to state tax in NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA and/or FSA.
Compare Health Accounts
| HSA | Health Care FSA | |
|---|---|---|
| Available with the… | HDHP | PPO High PPO Low Florida EPO Kaiser HMO (Also available if you waive medical coverage) |
| Company contribution? | Yes, Fanatics contributes $250 annually into your HSA | No |
| Maximum 2020 contribution amount? | $3,600 for individual medical coverage $7,200 for family medical coverage Plus an additional $1,000 if you’re age 55 or older | $2,750 |
| Change your contribution amount anytime? | Yes | No |
| Access your entire annual contribution from the beginning of the plan year? | No | Yes |
| Access only funds that have been deposited? | Yes | No |
| Use account money for… | All eligible health care expenses | All eligible health care expenses |
| “Use it or lose it” at year-end? | No | Yes (up to $500 rolls over at year end) |
| Money is always yours to keep? | Yes, you own your account and any remaining balance rolls over year after year | No |
Health Care Flexible Spending Account
Using a Health Care Flexible Spending Account (FSA) is like getting a discount on everyday health care expenses because you’re paying with tax-free money.
Use your money!
With FSA money, you “use it or lose it.” Expenses incurred from July 1, 2019, through midnight on December 31, 2020, can be paid or reimbursed with your remaining 2019/2020 FSA funds by card or manual claims. Your ability to use your card for these expenses ends at midnight on December 31, 2020. Then, you will have a two-month Grace Period to submit substantiation documents or manual claims for expenses incurred from July 1, 2019, through midnight on December 31, 2020. After that, any remaining 2019/2020 funds in your account will be forfeited.
Your 2020/2021 FSA funds can be spent on eligible expenses incurred from July 1, 2020 through June 30, 2021.
Health Care FSA
Available to all regular full-time employees, but if you enroll in the HDHP, please note that you cannot enroll in both a Health Care FSA and an HSA
- Contribute up to $2,750 for the plan year to help cover eligible medical, dental, and vision expenses.
- Select your annual contribution as a new employee, during Open Enrollment, or within 31 days of a qualified life event. You can only change your contribution amount during the year if your personal situation changes.
- 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.
- Up to $500 of unused money may be carried over to the next plan year; amounts above $500 will be forfeited.
- Visit the FSA Store to easily purchase FSA-eligible items and pay with your debit card — this can be a great way to use up remaining funds before the end of the plan year.
- Note: FSAs require active enrollment during each annual open enrollment period if you want to participate the following year.
Dependent Care Flexible Spending Account
A Dependent Care Flexible Spending Account (DCFSA) can help you save money on child care or elder care costs because you use tax-free money to pay for your expenses. Eligible expenses for this account include the cost to provide care for children under age 13 or for adults who are unable to care for themselves.
Keep in mind, there are separate FSAs for health care and dependent care. You cannot use money in your Dependent Care FSA to pay for health care expenses for your dependents.
Use your money!
With FSA money, you “use it or lose it.” Expenses incurred from July 1, 2019, through midnight on December 31, 2020, can be reimbursed from your remaining 2019/2020 FSA funds by manual claims. After December 31, 2020, you will have a two-month Grace Period to submit any outstanding manual claims for expenses incurred from July 1, 2019, through midnight on December 31, 2020. Any remaining 2019/2020 funds in your account will be forfeited at the end of the Grace Period.
Your 2020/2021 FSA funds can be spent on eligible expenses incurred from July 1, 2020 through June 30, 2021.
Dependent Care FSA
Available to all regular full-time employees
- Contribute up to $5,000 for the plan year to help cover your eligible dependent care expenses — your DCFSA funds can only be used to pay for care for children under age 13 or adults who cannot care for themselves.
- Use the Connect Your Care website to request reimbursement for payments you’ve made. Keep in mind, you only have access to money that has actually been deposited into your account — your entire annual contribution amount is not available to you from the beginning of the plan year.
- Select your annual contribution as a new employee, during Open Enrollment, or within 31 days of a qualified life event. You can only change your contribution amount during the year if your personal situation changes.
- Unused money does not carry over at the end of each year — use it or lose it. The Dependent Care FSA Plan Year runs from July 1 ‒ June 30. Any money not used within two months and fifteen days of the end of the Plan Year (September 14) will be forfeited.
- Note: FSAs require active enrollment during each annual open enrollment period if you want to participate the following year.
Health Savings Account
Employees in the HDHP can open and contribute money to a Health Savings Account (HSA) administered by Connect Your Care. The HSA is a tax-free savings account that you can use to pay for eligible health expenses anytime, even in retirement.
Put money in tax-free.
Put money in tax-free.
- Contribute to your HSA through pre-tax payroll deductions.
- Change your contribution amount anytime.
Get company contributions.
Get company contributions.
- Fanatics will contribute $250 to your HSA annually.
- You must enroll in and open an HSA, even if you don’t plan to contribute, in order to receive Fanatics’ contribution.
Pay for care tax-free.
Pay for care tax-free.
- Pay for eligible medical, dental, and vision expenses for you and your family using your HSA debit card (provided sufficient funds are in your account).
- Track your spending, check your balance, reimburse yourself, and more at Connect Your Care.
- Keep in mind, you can only spend money that has actually been deposited into your account.
Carry unused money over.
Carry over unused money.
- 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.
Keep in mind: 2020 contribution limits
The total amount you and Fanatics can contribute to your HSA this year is:
- $3,600 for individual medical coverage.
- $7,200 for family medical coverage.
- Add $1,000 to these limits if you’re age 55 or older.
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).
- Your balance can grow tax-free, through interest or investment earnings.
- Money 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
An HSA is only offered to you if you enroll in the HDHP. If you’re not currently enrolled in the HDHP, you may enroll during Open Enrollment.
Once you’ve enrolled in the HDHP, you will receive a welcome letter and payment card for your Connect Your Care HSA as long as you’ve satisfied the identity verification process with the bank custodian. (This usually happens automatically when you elect to enroll in the HDHP.) If the bank custodian is unable to verify your identity, they may contact you for additional information. You must have an active account with Connect Your Care in order to receive Fanatics’ contribution, so make sure you complete the verification process if additional information is requested, regardless of whether you plan to contribute to your HSA yourself.
Think long term!
A married couple could need as much as $363,000 in savings to meet their 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, Fanatics’ 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.