Overview

You can save money by paying for eligible health care, dependent care, and commuter expenses with Tax Savings & Spending Accounts. LPL Financial offers you several types of accounts that lower your taxes.

Accounts

Key features

  • 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.
  • Payflex HSA portal – Access plan information, check your available balance, and submit claims online
  • TRI-AD portal – Access plan information, check your available balance, and submit claims online.

*Contributions are not subject to federal tax. However, they are currently subject to state tax in AL, CA, and NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA.

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Use the PayFlex Calculator to help you decide how much you should contribute!

iconHow much could you save?

Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax, and $153 in payroll tax. So, by contributing that $2,000 to his HSA or FSA, he’ll get $733 in tax savings for the year.

Without an HSA or FSA, Tom would pay … Savings
24% in federal income tax $480
5% in state income tax $100
7.65% in Federal Insurance Contributions Act (FICA) tax $153
His 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, they are currently subject to state tax in AL, CA, and NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA.

Health Savings Account

With the Aetna HealthFund HSA PPO Plan you’re eligible to open and contribute money to a Health Savings Account (HSA) through PayFlex. The HSA is a tax-free savings account that you own. You can use it to pay for eligible health expenses anytime, even in retirement. Watch this video to learn more.

Get triple tax advantages with an HSA

Put money in tax-free.

  • Contribute to your HSA through before-tax payroll deductions (up to IRS annual limits).
  • Change your contribution amount anytime.

You also get company contributions!

  • $500 for individual coverage
  • $1,000 for family coverage

 

Pay for care tax-free.*

Grow money for the future tax-free.

  • All the money in your HSA is yours to keep; any remaining balance rolls over 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.

*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.

Contribution limits

The IRS sets annual limits on the total amount of money that can be contributed to your HSA. These limits include contributions from both you and LPL Financial:

  • Individual: $3,600
  • Family: $7,200
iconWho’s eligible for an HSA?

In order to establish and contribute to an HSA, you:

  • Must be enrolled in the Aetna HealthFund HSA PPO Plan.
  • Cannot simultaneously participate in the Health Care FSA (but participation in a Limited Purpose FSA is allowed).
  • Cannot be enrolled in any other first-dollar medical coverage, including Medicare, Tricare or a spouse’s plan, including a spouse’s Health Care FSA
  • Cannot be claimed as a dependent on someone else’s tax return.

You should review IRS rules for making HSA contributions if you will turn age 65 during the year.

For more information, see IRS Publication 969.

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Increase your tax savings with a Limited Purpose FSA

Use your HSA together with a Limited Purpose FSA for additional tax savings.

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. LPL offers four tax-advantaged plan options administered by Tri-Ad, two of which are governed by your medical election, and two that are available regardless of your medical election.

Health Care (HC) FSA

Available to employees who do not enroll in an HSA, or do not elect LPL medical coverage.

Contribute up to $2,750 for the year through before-tax payroll deductions to help cover eligible medical, vision, and dental expenses.

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Choose

Choose your contribution amount when you enroll. You can only change your contribution amount during the year if your personal situation changes so estimate carefully.

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Contribute

Your annual contribution will be divided into equal payroll deductions.

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Spend

The FSA Visa debit card lets you pay Health Care and Dependent Care expenses with funds deducted directly from your account. You are required to keep all supporting documentation.

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Use It Up

Up to $550 of unused money may be carried over to the next year; amounts above $550 will be forfeited, so be sure to use it up!

Limited Purpose (LP) FSA

Available only to employees who enroll in the Health Savings Account (HSA) to offer additional tax-saving opportunities

Contribute up to $2,750 for the year through before-tax payroll deductions. This account can be used on eligible dental and vision expenses only. See a complete list of eligible expenses.

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Choose

Choose your contribution amount when you enroll. You can only change your contribution amount during the year if your personal situation changes so estimate carefully.

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Contribute

Your annual contribution will be divided into equal payroll deductions.

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Spend

The FSA Visa debit card lets you pay Health Care and Dependent Care expenses with funds deducted directly from your account. You are required to keep all supporting documentation.

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Use It Up

Up to $550 of unused money may be carried over to the next year; amounts above $550 will be forfeited, so be sure to use it up!

Dependent Care FSA

Available to all employees

Contribute up to $5,000 for the year through before-tax payroll deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders.

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Choose

Choose your contribution amount when you enroll. You can only change your contribution amount during the year if your personal situation changes so estimate carefully.

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Contribute

Your annual contribution will be divided into equal deductions from each paycheck.

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Spend

The FSA Visa debit card lets you pay Health Care and Dependent Care expenses with funds deducted directly from your account. You are required to keep all supporting documentation.

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Use It Up

Unused money does not carry over at the end of each year — use it or lose it! Be sure to use it up.

Commuter Reimbursement Plan

Pay for transportation expenses with before-tax dollars, which can save you money on monthly parking or transit costs related to your work commute:

  • It’s easy and flexible. You decide how much to contribute, and the money is deducted from your paycheck automatically.
  • Before-tax deductions are allowed up to the IRS limit of $270 per month for transit and/or $270 per month for parking.
  • Commuter Prepaid Debit Mastercard will be issued with your first order.
  • The Commuter card is accepted at transit agencies, fare vending machines and designated transit retail centers.

Compare Accounts

  HSA Limited Purpose FSA Health Care FSA Dependent Care FSA Commuter Plan
Available with… Aetna
HealthFund HSA PPO
Aetna EPO
Kaiser Permanente HMO
Aetna CPOS II PPO
(Also available if you waive medical coverage)
Available to all employees Available to all employees
Receive company contribution Yes No No No No
Change your contribution amount anytime Yes No No No Yes
Access your entire annual contribution amount the beginning of the plan year No Yes Yes No No
Access only funds that have been deposited Yes No No Yes Yes
Use the money for… Eligible medical, dental and vision expenses Eligible dental and vision expenses Eligible medical, dental and vision expenses Eligible day care expenses for your children up to age 13 and tax dependents of any age dependent on you for supportParking and transit expenses
“Use it or lose it” at year-end No Yes
(Carry over up to $550)
Yes
(Carry over up to $550)
Yes N/A
Money is always yours to keep Yes No No No N/A