HSA and FSA Accounts

Health Savings Account (HSA)

Want funds handy to help cover out-of-pocket healthcare expenses? A Health Savings Account (HSA) is a personal healthcare bank account used to pay for qualified medical expenses. HSA contributions and withdrawals for qualified healthcare expenses are tax-free. You must be enrolled in the CDHP 2000 plan to participate.

Your HSA can be used for qualified expenses for you, your spouse, and/or tax dependent(s), even if they’re not covered by your plan.

WEX Health will issue you a debit card with direct access to your account balance. Use your debit card to pay for qualified medical expenses — no need to submit receipts for reimbursement. Like a regular debit card, you must have a balance in your HSA account to use the card.

Eligible expenses include doctors’ visits, eye exams, prescription expenses, laser eye surgery, over-the-counter medications, and more. Visit IRS Publication 502 on www.irs.gov for a complete list.

Eligibility

You are eligible to contribute to an HSA if:

• You are enrolled in the CDHP 2000 Plan.
• You do not or your spouse does not have a Health Care Flexible Spending Account (FSA) or Health Reimbursement Account.
• You are not eligible to be claimed as a dependent on someone else’s tax return.
• You are not enrolled in Medicare or TRICARE.
• You have not received Department of Veterans Affairs medical benefits in the past 90 days for non-service-related care. (Service-related care will not be taken into consideration.)

Your HSA is a personal bank account that you own and manage. You can access funds immediately, roll over HSA funds to the next year if you don’t spend them, or save for eligible expenses in retirement. HSA funds are also yours to keep even if you change jobs or retire. You may be able to roll over funds from another HSA. Active enrollment in the HSA is required annually to participate.

Note: Because HSA funds never expire, contributing your annual maximum to your HSA can help you save to pay for healthcare expenses tax-free after retirement.

HSA Funding Limits

The IRS places an annual limit on the maximum amount that can be contributed to HSAs. For 2026, contributions (which include any employer contribution) are limited to the following:

Ambipar provides an HSA employer contribution that will be deposited on a per pay period basis.

Due to federal regulations, expenses for your domestic partner and your domestic partner’s children may not be reimbursed under the HSA programs. Check with your tax advisor to determine if any exceptions apply. 

HSA contributions over the IRS annual contribution limits ($4,400 for individual coverage and $8,750 for family coverage for 2026) are not tax deductible and are generally subject to a 6% excise tax.

Note: State income taxes are also waived on HSA contributions in almost all states.

Flexible Spending Accounts (FSAs)

Take control of your spending! A Flexible Spending Account (FSA) is a special tax-free account you put money into to pay for certain out-of-pocket expenses.

Health Care Flexible Spending Account

With a Health Care FSA, you can contribute up to $3,400 annually for qualified medical expenses (deductibles, copays, coinsurance, over-the-counter medications, etc.) with pre-tax dollars, which reduces your taxable income and increases your take-home pay. You can even pay for eligible expenses with an FSA debit card at the same time you receive them — no waiting for reimbursement.

Dependent Care Flexible Spending Account

You may opt to participate in the Dependent Care FSA — even if you don’t elect any other benefits. Set aside pre-tax funds into a Dependent Care FSA for expenses associated with caring for elderly or child dependents. Unlike the Health Care FSA, reimbursement from your Dependent Care FSA is limited to the total amount that is currently deposited in your account.

• With the Dependent Care FSA, you can set aside up to $7,500 to pay for child or elder care expenses on a pre-tax basis.
• Eligible dependents include children under 13 and a spouse or other individual who is physically or mentally incapable of self-care and has the same principal place of residence as you for more than half the year.
• You must provide the tax identification number or Social Security number of the party providing care to be reimbursed. This account covers dependent daycare expenses that are necessary for you and your spouse to work or attend school full time. Eligible expenses include:
  • • In-home babysitting services (not provided by a dependent)
    • Care of a preschool child by a licensed nursery or daycare provider
    • Before- and after-school care
    • Day camp
    • In-house dependent daycare

Due to federal regulations, expenses for your domestic partner and your domestic partner’s children may not be reimbursed under the FSA programs. Check with your tax advisor to determine if any exceptions apply.

Using the Account

Use your FSA debit card at doctor and dentist offices, pharmacies, and vision service providers. It cannot be used at locations that do not offer services under the plan, unless the provider has also complied with IRS regulations. The transaction will be denied if you use the card at an ineligible location.

Submit a claim form along with the required documentation. Contact WEX Health with reimbursement questions. If you need to submit a receipt, WEX Health will notify you. Always save receipts for your records.

While FSA debit cards allow you to pay for services at point of sale, they do not remove the IRS regulations for substantiation. Always keep receipts and Explanation of Benefits (EOBs) for any debit card charges in case you need to prove an expense was eligible. Without proof an expense was valid, your card could be turned off and the expense deemed taxable.

General Rules

The IRS has the following rules for Health Care and Dependent Care FSAs:

• Expenses must occur during the 2026 plan year.
• Funds cannot be transferred between FSAs.
• You cannot participate in a Dependent Care FSA and claim a dependent care tax deduction at the same time.
• You must “use it or lose it” — any unused funds will be forfeited.
• You cannot change your FSA election in the middle of the plan year without a Qualifying Life Event.

Grace Period

• You have 2½ months after the plan year ends on December 31, 2026, to incur additional expenses and submit them for reimbursement. Therefore, any remaining balance in the previous plan year that ended December 31, 2026, will be used to pay that grace period expense even though the service was provided in the NEW plan year.
• The grace period applies to both the Dependent Care and Health Care FSAs.

Please refer to your Summary Plan Description or plan certificate for your plan’s specific FSA or HSA benefits.