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Savings & Spending Accounts

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Last updated date: 7/24/2026

Save money on eligible health care and/or dependent care expenses by paying for them with tax-advantaged accounts.

Overview

Shields Health offers you the opportunity to contribute to tax-advantaged accounts and encourages you to take full advantage of their money-saving potential. You can enroll as a new hire, during Open Enrollment, or if you have a qualifying life event.

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

Make before-tax deductions from your paycheck to effortlessly add money to your account while lowering your taxable income, which results in significant savings for you.

Helpful budgeting tool

Plan for upcoming expenses by setting aside money each paycheck.

*Contributions are not subject to federal income tax, but may be subject to state income tax in certain states, depending on your account type. Consult with your tax advisor to understand your potential tax implications.

What’s eligible?

The IRS determines what expenses can be paid with money from a tax-advantaged account. Learn more about the eligible expenses for each account:

  • Health Savings Account (HSA) or Health Care Flexible Spending Account (FSA) – Eligible expenses include medical care, prescriptions, dental care, vision care, and many over-the-counter products. Learn more on the IRS website.
  • Dependent Care FSA – Eligible expenses include day care for children under age 13, as well as elder care, so you (and your spouse if you're married) can work. Learn more on the IRS website.

How 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 save $733 in taxes 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 payroll tax…………………………………………………………..……. $153
His total tax savings for the year with an HSA or FSA …………... $733

This hypothetical 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 contributions are not subject to federal income tax, but are currently subject to state income tax in CA and NJ. Consult with your tax advisor to understand the potential tax implications of enrolling in an HSA and/or FSA.

Health Savings Account

When you enroll in the $2,500 HDHP or $4,000 HDHP, you’re eligible to open and contribute money to a Health Savings Account (HSA) through Fidelity. This powerful combination of lower-premium, higher-deductible medical coverage and a tax-free HSA helps you take control of your health care spending.

You own your HSA and can choose to spend the money right away as eligible health expenses come up or save it for the future — you can even use it in retirement.

Get a triple tax advantage — and company funding!

You contribute to your HSA through before-tax payroll deductions from each paycheck.

You can change, stop, or restart your contributions anytime.

1. Contribute money tax-free.*

Use the tax-free money in your HSA to pay for eligible medical, dental, and vision expenses for you and your family. You can make payments with your HSA debit card or through the Fidelity website (provided sufficient funds are in your account) or reimburse yourself later.

2. Spend money tax-free.*

All the money in your HSA is yours to keep. Anything you don’t spend rolls over each year. You can earn tax-free interest and even invest your money once it reaches a minimum balance, giving you the potential for tax-free growth and a way to plan ahead for future expenses.

3. Grow your money tax-free.

Shields Health will contribute to your HSA tax-free to help cover your out-of-pocket expenses. The company’s annual contribution is made over time, with a proportional amount deposited into your HSA every paycheck. Employees must contribute to their own HSA in order to receive the company contribution. (See company funding details below.)

And, get company funding (tax-free)!

*HSA contributions are not subject to federal income tax, but are currently subject to state income tax in CA and NJ. 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.

2026 contribution limits

The maximum amount you and Shields Health can contribute to your HSA is determined by annual IRS limits. In 2026, the total contribution limits are:

  • $4,400 if you have employee-only medical plan coverage, or
  • $8,750 if you cover dependents.

Add $1,000 to these limits if you’re age 55 or older.

Company funding
Keep in mind that the maximum contribution you can elect for the year will be reduced by the amount of Shields Health's annual employer contribution — the company's contribution is based on your scheduled hours, medical plan, and coverage tier.

  • For employees scheduled to work 40 hours per week, the contribution is $625 for employee-only coverage or $1,250 if covering dependents under the $2,500 HDHP, and $1,500 for employee-only coverage or $3,000 if covering dependents under the $4,000 HDHP.
  • For employees scheduled to work 24–39 hours per week, the contribution is $312.50 for employee-only coverage or $625 if covering dependents under the $2,500 HDHP, and $1,500 for employee-only coverage or $3,000 if covering dependents under the $4,000 HDHP.

Who’s eligible for an HSA?

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

  • Must be enrolled in the $2,500 HDHP or $4,000 HDHP.
  • Cannot simultaneously participate in the Health Care FSA.
  • Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare.
  • 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.

Getting started

To contribute to an HSA, you must enroll in the $2,500 HDHP or $4,000 HDHP. You will elect your HSA contribution amount during enrollment, but can change it anytime during the year. You can then manage your account through the Fidelity website.

As you start using your account, keep in mind you can only spend money actually deposited into your account — your entire annual contribution amount is not available to you from the beginning of the plan year. Your HSA balance will grow as deposits are made from each paycheck.

IMPORTANT: After enrolling in Workday, you will also need to open the HSA account directly with Fidelity so we can fund your contributions. Shields Health is unable to open the HSA account on your behalf. You must take action directly with Fidelity using one of the options below:

  • You can do this online at www.netbenefits.com.
  • However, we strongly recommend calling Fidelity’s HSA Participant Services Team at (800) 544-3716, where an associate can walk you through the process to ensure all required steps are completed correctly.

Flexible Spending Accounts

Using a Flexible Spending Account (FSA) is like getting a discount because you’re paying with tax-free money. There are separate FSAs for different purposes:

  • Health Care Flexible Spending Account (FSA) – Available to employees who are not eligible for an HSA. This account lets you pay for current health care expenses with tax-free money. You can contribute a minimum of $0 up to a maximum of $3,400 for the year.
  • Dependent Care Flexible Spending Account (FSA) – Available to all employees regardless of medical plan enrollment. This account lets you pay for childcare or dependent adult care with tax-free money. You can contribute a minimum of $0 up to a maximum of $7,500* for the year. (Note: Your contribution limit is cut in half if you are married and file separate tax returns.)
Important: You must enroll in these accounts each Open Enrollment if you want to contribute the next year, even if you already have an account.

How the FSAs work

Choose your contribution amount when you enroll. You can only change it during the year if you have a qualifying life event, so estimate carefully.

Choose

Your annual contribution is divided into proportional deductions from each paycheck. With Health Care FSAs, the entire annual amount is available to you from the beginning of the plan year. With the Dependent Care FSA, you can only access the amount of money you've actually contributed.

Contribute

Spend your money on eligible expenses. For health care expenses, use your FSA debit card, where accepted. Log in to the HRC Total Solutions website to submit payment requests or request reimbursement for payments you’ve made. (There is no debit card for the Dependent Care FSA.)

Spend

There is an annual "use it or lose it" rule with FSAs. For the Health Care FSAs, you have a 2½ month grace period to apply funds from the current year into the next year. There is no grace period for a Dependent Care FSA; all funds must be spent on current year expenses. You will have some extra time to submit your claims. Log in to HRC Total Solutions to view deadlines and request reimbursement.

Use It Up

*A lower contribution cap may apply for highly compensated employees as determined by IRC Section 415(c)(3).