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.
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.
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 | |
|---|---|
| 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.
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.
| HSA | Health Care FSA | Limited Purpose FSA | |
|---|---|---|---|
| Available with … | Choice Plus Savings Plan |
Surest Plan
Choice Plus Preferred (PPO) Plan Choice Exclusive (EPO) Plan Kaiser HMO |
Choice Plus Savings Plan |
| Receive company contribution | Yes, $300 employee only, $500 if covering any dependents (deposited quarterly and pro-rated based on hire date) | No | No |
| Change your contribution during the year | Yes | No | No |
| Access your entire annual contribution amount as needed | No | Yes | Yes |
| Access only funds that have been deposited | Yes | No | No |
| Use account money for... | All eligible health care expenses | All eligible health care expenses | Only dental and vision expenses |
| “Use it or lose it” at year-end | No | Yes, but can roll over up to $500 | Yes, carry over up to $500 |
| Money is always yours to keep | Yes | No | No |
Employees in the Choice Plus Savings Plan can contribute money to a Health Savings Account (HSA) through Fidelity. The HSA is a tax-free savings account that you can use to pay for eligible health expenses anytime, even in retirement.
HSA Eligibility
To enroll in the HSA, you must be enrolled in the Choice Plus Savings Plan and:
- You can’t have other health coverage that pays for out-of-pocket health care expenses before you meet your plan deductible (another high deductible plan is allowed).
- You or your spouse can’t have a general purpose Health Care Flexible Spending Account (FSA) or Health Reimbursement Account (HRA) in the same year.
- If you are enrolled in Medicare, you are not eligible to contribute to the HSA.
- You can’t be enrolled in TRICARE, or have received Veterans Administration (VA) health benefits in the previous three months.
- You can’t be claimed as a dependent by someone else.
Put money in tax-free.
- Contribute to your HSA through pre-tax payroll deductions.
- Change your contribution amount anytime.
Get company contributions.
Commvault will contribute $300 if you have employee-only medical plan coverage, or $500 if you cover dependents
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 Fidelity.
Carry unused money over.
- The money in your HSA is always yours to keep so you can save to pay for future health care expenses.
- Invest your funds once you reach a minimum balance for the potential of tax-free earnings growth and a way to save for your medical costs in retirement.
Keep in mind: 2024 contribution limits
Keep in mind, the maximum amount you and Commvault can contribute to your HSA is determined by annual limits that the IRS sets. In 2024, the total contribution limits are:
- $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.
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.
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, Commvault’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.
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.
When deciding how much to contribute to either the Health Care FSA and/or the Dependent Care FSA, be sure to plan carefully as the FSAs are “use it or lose it.” You have until March 15, 2025 to incur claims for your 2024 contributions and until March 31, 2025 to submit a claim for reimbursement. Any funds remaining will be forfeited.
Use your money!
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. You can only carry over up to $500 of unused money in your FSA to the next year; you will forfeit any remaining amount above $500. To request reimbursement or manage your account, visit UnitedHealthcare website.
Health Care FSA
Pairs with any medical plan except the Choice Plus Savings Plan; also available if you waive Commvault medical coverage.
- Contribute up to $3,200 annually to help cover eligible medical, dental, and vision expenses.
- Select your annual contribution amount during Open Enrollment. 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.
- You may carry over up to $500 of your remaining balance as of December 31 for use in the following calendar year. Any balance over $500 remaining at the end of the year will be forfeited.
Limited Purpose FSA
Can be used with the Choice Plus Savings Plan only
- Works together with the Health Savings Account (HSA) to give you additional tax-saving opportunities.
- This account can be used to cover eligible dental and vision expenses only.
- Contribute up to $3,200 annually.
- Select your annual contribution amount during Open Enrollment. 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 previously made.
- Your entire annual contribution amount is available to you from the beginning of the plan year or once you’ve enrolled as a new hire.
- You may carry over up to $500 of your remaining balance as of December 31 for use in the following calendar year. Any balance over $500 remaining at the end of the year will be forfeited.
Dependent Care FSA
Pairs with any (or no) medical plan.
- Contribute up to $5,000 a year to help cover your eligible dependent care expenses.
- Use UnitedHealthcare website to reimburse yourself for payments you’ve made.
- Select your annual contribution amount during Open Enrollment. You can only change your contribution amount during the year if your personal situation changes.
- You must have an account balance equal or greater to the amount requested in order to be reimbursed.
- An FSA is use-it-or-lose-it. Any funds remaining are forfeited if not incurred or submitted by the annual deadline.