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2025 Savings and Spending Accounts

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There are several types of accounts that help to reduce your taxable income when paying for eligible expenses for yourself, your spouse, and eligible tax dependents. The Health Savings Account (HSA) and Flexible Spending Accounts (FSAs) help you save money on out-of-pocket expenses that you and your family incur during the calendar year.

NOTE: You may only participate in the HSA bank account if you meet the IRS requirements and are enrolled in Liberty’s H.S.A. qualified Cigna HDHP plan.

Flexible Spending Accounts (FSA)

The Flexible Spending Accounts are an easy way for you to keep more of your take-home pay by using “pre-tax” dollars for eligible expenses. Simply present your FSA debit card for the purchase of eligible services and goods. Using the debit card allows you to directly tap into your Healthcare and Dependent Daycare FSA, meaning better cash flow for you and no waiting period for reimbursement.

Both FSA accounts require non-discrimination testing.

Eligible Expenses* and Guidelines

Healthcare Flexible Spending Account	Dependent Care Flexible Spending Account
$3,300 annual maximum	$5,000 annual maximum
Medical plan office visit copays, deductibles, and coinsurance	Used for dependent day care expenses while you and your spouse work, look for work, or attend school full-time
Certain over the counter items prescribed by your provider	Eligible dependents include children under age 13 or dependents that are physically or mentally unable to care for themselves for 8 hours a day
Dental plan copays, deductibles, and coinsurance	Can only be reimbursed up to what you have contributed via payroll deduction (pay as you go)
Orthodontia expenses	Expenses must be incurred by March 15th of the following year and submitted for reimbursement by March 31st of the following year
Vision care expenses including contracts, glasses, and LASIK surgery
Expenses can be for you or anyone you claim as a dependent on your Federal tax return**
Your entire election is available immediately regardless of actual payroll deduction amounts
Carry over up to $660 for the following calendar year
Expenses must be incurred by December 31st and submitted for reimbursement by March 31st of the following year

*This is only an example of eligible expenses.
**Visit irs.gov for definition of eligible tax dependent as well as a view a full list of eligible expenses under Section 125.

Health Savings Account (HSA)

The HSA is a savings account used to pay for qualified expenses by using your HSA debit card or to reimburse yourself at any time for eligible medical, dental or vision expenses. HSA’s are also designed to set aside money to save for health expenses in retirement.

Eligibility Requirements

You can contribute to an HSA only if you meet the following IRS requirements:

you are enrolled in Liberty’s Cigna HDHP Plan
are not covered by any other traditional medical plan (including your spouse’s plan (unless it is also a qualified HDHP), Medicare, or Tricare) or Healthcare flexible spending account
cannot be claimed as a dependent on someone else’s tax return

Advantages

You benefit from flexibility, tax savings, and retirement savings.

employer sponsored – Liberty pays the monthly fee for the account
employer contributions – Liberty contributes per paycheck
employee funded – you decide how much and when; increase the contribution amount at any time
employee-owned and portable
no “use it or lose it” rule – funds roll over annually
triple tax favored*
ability to invest funds once a minimum threshold has been met – to provide a supplement to retirement savings**

*HSA contributions and earnings are not subject to federal taxes and not subject to state taxes in most states. A few states do not allow pretax treatment of contributions or earnings. Please consult your personal tax advisor or contact your plan administrator for information about your state.

**Investment products are not FDIC insured, are not guaranteed, and may lose value.

Contributions

The Liberty Company will contribute up to $500 into your Benefit Resource (BRI) HSA Account for individual coverage and $1,000 for “family” coverage, based upon your enrollment date. Family coverage for this plan is defined as any coverage other than single. If you currently have an HSA Account with another vendor, you can choose to transfer the money to your BRI account as we will no longer be sending contributions to other vendors. Please contact your account administrator and Benefit Resource for additional details.

Maximum contributions are set by the IRS. For 2025, the total (employer & employee) maximum contribution is $4,300 for single coverage, or $8,550 for family coverage (per household). An annual catch-up amount of $1,000 is available for employees ages 55-65.

To contribute to an HSA, you cannot maintain a Flexible Spending Account (FSA) except for a Limited Purpose FSA, which is not offered by The Liberty Company. If at any point you change medical plans and are no longer enrolled in the Cigna HDHP Plan, you cannot continue to contribute to your HSA. However, you may still use any funds in your HSA to pay for qualified medical expenses.

If you enroll in the Cigna HDHP Plan and you choose to participate in the HSA, you will be required to contribute a minimum of $25 to your HSA.

Eligible Expenses

Funds can be spent on eligible medical expenses. Examples include any out-of-pocket medical expenses tied to an employer health plan. This includes co-payments, deductible expenses, co-insurance, and prescription drug costs.

It also covers other medical services that may not be included in your health plan such as dental, vision, chiropractic, or counseling services. Many over-the-counter items are eligible as well. Some examples of over-the-counter medical devices and supplies that are eligible include birth control, first aid supplies, Health monitors, insulin and diabetic supplies, and more. Some examples of eligible over-the-counter drugs and medicines include acne medications, allergy and sinus medications, cough cold and flu medicines, pain relief medications, and more.

It’s important to note that under an HSA, funds may be used only for dependents who are under the age of 19, or 23 if a full-time student. If your health plan allows a child to the age of 26, but they are not a tax dependent, their expenses are not considered eligible for HSA withdrawal. For a more comprehensive list of what’s eligible as well as an eligible expense lookup tool, visit the Eligible Expenses page at BenefitResource.com.

Visit https://www.benefitresource.com/resources/eligible/ for a comprehensive list & lookup tool.

Withdrawals

There is no time limit to reimburse yourself and the funds must be available in the account to use them. You must retain receipts and documentation of eligible expenses. There is no claim adjudication or verification process. It is between you and the IRS. Be sure to check your balance before making a payment or swiping your card at a provider’s office. Any unused funds rollover and all funds are yours to keep because you own the account!

If you use the HSA funds for non-qualified expenses before age 65, normal taxes will apply plus an additional 20% penalty. For ages 65 and older, normal taxes apply; there is no penalty.

Tax Forms

If you decide to open an HSA, you will need to report information about your account your taxes. Available from BRI will be IRS Form 5498-SA to report total account contributions, IRS Form 1099-SA to report all account distributions, and other tax information about your account performance throughout the year which you can see from the HSA Management Portal. Available from your employer will be your W-2. In box 12, your employer will report all your tax-free contributions to your HSA. When you file your taxes for the year, you’ll need to file IRS Form 8889 which calculates deductions and eligible withdrawals. If you use tax preparation software, it will ask you a few HSA questions and complete this document for you.

Remember your money is saved pre-tax, grows tax-free and is withdrawn tax-free. You own your HSA. Your account carries over from year to year and goes with you if you take a job with another employer.

In accordance with the USA Patriot Act, you may be asked to provide BRi with identification documentation to verify and establish your HSA.

The HSA is administered by Flores. You can connect to BenefitResource (Bri) at https://www.benefitresource.com/ or call our dedicated account manager Kitty at (847) 594-0884.