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HEALTH SAVINGS ACCOUNT
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HEALTH CARE FLEXIBLE SPENDING ACCOUNT (FSA)
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LIMITED PURPOSE FLEXIBLE SPENDING ACCOUNT
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Who owns it?
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Employee
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BNY Mellon
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BNY Mellon
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Who contributes to the account?
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BNY Mellon and employee
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Employee
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Employee
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Can unused amounts carry or roll over?
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Yes
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Yes, up to $500
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Yes, up to $500
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Is interest earned?
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Yes, interest-bearing checking account; once balance reaches $1,000,the amount over $1,000 may be invested
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No
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No
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Is the account subject to COBRA continuation?
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No
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Yes
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Yes
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How are contributions made?
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Through BNY Mellon and employee contributions
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Employee contributions
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Employee contributions
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Is there a contribution limit?
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Yes. The 2019 limits are $3,500 for individual coverage and $7,000 for dependent coverage, as established by the IRS.
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Yes. The 2019 limit is $2,650 for Health Care FSA as established by the IRS.
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Yes. The 2019 limit is $2,650, as established by the IRS.
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Is there a "catch-up" contribution provision for older workers?
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Yes. Employees age 55 or older may contribute an additional $1,000 per year.
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No
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No
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What are the tax benefits for employees?
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BNY Mellon and employee contributions are tax-free. Withdrawals/reimbursements for qualified medical expenses are tax-free.
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Employee contributions are tax-free, which reduces annual taxable income. Reimbursements for qualified medical expenses are tax-free.
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Employee contributions are tax-free, which reduces annual taxable income. Reimbursements for qualified medical expenses are tax-free.
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What health care expenses can be paid from the account?
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Any qualified medical expense as defined under Section 213(d) of the federal tax code, except for health insurance premiums, with specific exceptions.
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Any qualified medical expense as defined under Section 213(d) of the federal tax code, except for health insurance premiums. Long-term care services are tax deductible, but not reimbursable.
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Any eligible dental and vision expenses. In addition, qualified medical expenses as defined under Section 213(d) of the federal tax code once the HSA plan deductible has been satisfied. Health insurance premiums and long-term care services are not reimbursable.
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Can amounts in account be used for non-health care expenses for those over age 65?
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Yes. Non-health care distributions must be included in gross income, but are not subject to the additional 20% tax penalty.
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No
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No
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Can COBRA premiums be reimbursed from the account?
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Yes. Distributions to pay premiums reimbursed for COBRA are tax-free.
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No
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No
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Must a qualified medical expense occur during the plan year the contribution is made?
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No. You cannot use Health Savings Account contributions to pay for expenses incurred prior to establishing the Health Savings Account; however, you can use contributions to pay for eligible expenses incurred after establishing the Health Savings Account even if you are no longer covered by a high deductible health plan.
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In general, yes; however, you may carryover up to $500 to the following plan year.
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In general, yes; however, you may carryover up to $500 to the following plan year.
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Is use of a debit card allowed?
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Yes
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Yes
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No
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Can I contribute if I'm enrolled in any part of Medicare or TRICARE?
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No
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Yes
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No
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What happens to the account when I leave BNY Mellon?
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You can take your account with you.
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You forfeit any unused amounts. You may file a claim for expenses incurred through the last day of the month in which your coverage ends subject to any COBRA rights that may apply.
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You forfeit any unused amounts. You may file a claim for expenses incurred through the last day of the month in which your coverage ends subject to any COBRA rights that may apply.
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Are other accounts available at the same time?
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Only with a Limited Purpose FSA
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No
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Only with a Health Savings Account
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