LM_SW_Benefits Guide 2024

Health Savings Account

WHAT IS A HEALTH SAVINGS ACCOUNT? A tax-free savings account that combines medical coverage with a high deductible health plan. The savings account you establish through your employer can be used to pay for qualified health care expenses. You, your employer, or both can deposit tax-free contributions. It comes with tax advantages Tax savings. Money you put into your HSA can reduce your taxable income helping you save on taxes you pay. Tax-free earnings. Money you keep in your HSA earns interest tax free. Let it grow from year to year. Tax-free spending. Money you take from your HSA to pay for qualified health care expenses is never taxed. There are other benefits, too You own your HSA. You decide how to spend or save your health savings account. If you change jobs or health plans, you keep the account. You can even name a beneficiary to inherit your account. There’s no use-it-or-lose-it policy. Any money not used at the end of the plan year rolls over to the next year. It’s an investment. Your HSA is a savings account that earns interest. It’s a terrific way to put away money for health care costs down the road, even in retirement. After you build up a certain amount, you might have investment options.

Contribute anytime You, your spouse, and family members can contribute anytime, up to a yearly maximum. There are convenient ways to contribute such as payroll deduction, write a check or set up an electronic funds transfer from your bank account. FOUR EASY WAYS TO PAY Flexibility is built in with four easy ways to pay: 1. Debit card. Pay directly with a debit card linked to your HSA. 2. Online bill payment. Pay for health care expenses while online using your computer or the Cigna app. 3. Online withdrawal. Transfer funds from your HSA to your personal bank account. 4. Checkbook. Write checks to pay for out-of pocket expenses (available at additional cost).

Employer contributions to HSA for January 1, 2024 First year participants will receive $500/$1,000 (Individual / All Other Tiers) Second year participants will receive $250/$500 (Individual / All Other Tiers) Participants with three years or more will receive $250/$500 (Individual / All Other Tiers)

Eligibility limited to employees who are not covered under any portion of Medicare or Tricare. Additionally, participants must have zero balances in the Health Care FSA accounts to which they have access in order to make or receive contributions to an HSA.

Log into www.workforcenow.adp.com and click on Resources – Company Information – Tools/Resources – 2024 Benefit Documents for details. In the event of a discrepancy, the carrier Plan Document shall prevail.

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