Tax Savings Accounts

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

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.

Inspira Financial (Formerly 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.

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 Health Fund HSA Plan you’re eligible to open and contribute money to a Health Savings Account (HSA) through Inspira Financial (formerly 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

*Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses.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.

HSA 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:

	Employee contribution limit	LPL Financial’s contribution	HSA contribution limit (employer + employee)
Employee-only:	$3,800	$500	$4,300
Employee + one or more:	$7,550	$1,000	$8,550
HSA catch-up contributions (age 55 or older): $1,000

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 $3,300 for the year through before-tax payroll deductions to help cover eligible medical, vision, and dental expenses.

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 $3,300 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.

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.

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 $325 per month for transit and/or $325 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 Health Fund (HSA)		Aetna Traditional (PPO) Aetna Select (EPO) Aetna Atrium (ACO) Kaiser HMO (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 support	Parking and transit expenses
“Use it or lose it” at year-end	No	Yes (Carry over up to $660)	Yes (Carry over up to $660)	Yes	N/A
Money is always yours to keep	Yes	No	No	No	N/A