HSA & FSA Plans

Health Savings Account (HSA)

If you enroll in the High Deductible Health Plan (HDHP), you are eligible to open a Health Savings Account (HSA) with Rocky Mountain Reserve.

An HSA is a plan designed to help you manage rising healthcare cost by setting aside money to pay for out-of-pocket medical expenses and to save for retirement. You can think of it as a personal savings account for medical expenses. HSAs are employee- owned, meaning you take the HSA with you if you change employers. Unused funds will earn interest and can be invested until they are withdrawn for eligible expenses or at retirement. You set aside money on a pre-tax basis - this means as long as you use the money for eligible expenses, you won't pay income taxes on it.

You are eligible to open and contribute to an HSA if you:

Are enrolled in an HSA-eligible HDHP
Are not covered by other non-HDHP, such as your spouse’s health plan, Health Care Flexible Spending Account, or Health Reimbursement Arrangement
Are not eligible to be claimed as a dependent on someone else’s tax return
Are not eligible for Medicare or TRICARE
Have not received Veterans Administration benefits

You can use the money in your HSA to pay for qualified medical expenses now or in the future. Your HSA can be used for your expenses and those of your spouse and dependents, even if they are not covered by the HDHP.

Maximum Contribution:

The annual contribution maximum is based on the coverage option you elect.

Individual $4,300
Family (filing jointly) $8,550

Employees age 55 and older are allowed to make an additional annual “catch-up” contribution of up to $1,000.

Optimizing Your HSA

If enrolled in the HDHP Advantage Medical Plan, you may be able to benefit from one of the best tax breaks available: the health savings account (HSA).

It pays to find out whether you’re eligible to contribute to an HSA and the three ways to maximize its “triple tax benefits."

Contributions reduce your taxable income without having to itemize deductions.
Growth of the account is tax-deferred.
Distributions for qualified medical expenses—for you and your family—are tax-free.

Unlike Flexible Spending Accounts (FSAs), the funds in an HSA are not “use-it-or-lose-it.” They roll over from year to year, and the account is yours even if you change employers or health plans.

Four reasons to love an HSA

01

Tax-free. No federal tax on contributions, or state tax in most states. Withdrawals are also tax-free as long as they’re for eligible healthcare expenses.

02

No “use it or lose it.” Your balance rolls over from year to year. You own the account and can continue to use it even if you change medical plans or leave the company.

03

Use it now or later. Use your HSA for healthcare expenses you have today or save it to use in the future.

04

Boosts retirement savings. After you retire, you can use your HSA for healthcare expenses tax-free, or for regular living expenses, taxable but no penalties.

Flexible Spending Account (FSA)

A Flexible Spending Account (FSA) allows you to pay for a variety of out-of-pocket health care and dependent care expenses pre-tax. Putting money into an FSA before you pay taxes on it saves you money by lowering your taxable income. The result? You pay less in taxes each year.

There are two types of FSAs available to you through Rocky Mountain Reserve:

Healthcare Flexible Spending Account

Set aside pre-tax dollars from your paycheck to cover eligible healthcare expenses such as eyeglasses, contacts, copays, deductibles, prescription medications, and orthodontia. The entire amount you set aside is available to use on the first day of your plan year.

2025 Contribution Limits

$3,300

Dependent Care Flexible Spending Account

Set aside pre-tax dollars from your paycheck to cover eligible dependent care expenses such as day care and general-purpose day camps for your dependents under the age of 13 while you are at work. You can also use the funds to pay for adult day care services for dependent adults who are unable to care for themselves. You will be reimbursed for eligible expenses as they are incurred and as funds are deposited into your account.

2025 Contribution Limits

$5,000 ($2,500 if married and filing separate)

Healthcare Flexible Spending Account - Qualified and Non-Qualified Expenses

Qualified Expenses	Non-Qualified Expenses
Copays Deductibles Coinsurance Acupuncture Chiropractic Care Birth Control OTC Medicines Contact Lens Solution COVID Testing Prescriptions Dental Implants Prescription Sunglasses Hearing Aids	Insurance Premiums Cosmetic Premiums Air Purifier Marriage Counseling CPR Classes Diapers Doulas Electrolysis Funeral Expenses Long Term Care Medicare or Supplement Premiums

Dependent Care Flexible Spending Accounts - Qualified and Non-Qualified Expenses

Qualified Expenses	Non-Qualified Expenses
Pre-school Before/After School care Day care center Non-tax dependent family provider Day camps	Kindergarten Date night babysitters Tax dependent providers Overnight camps Supplies, food, equipment, etc related camp services

Set aside healthcare dollars for the year

A healthcare FSA allows you to set aside tax-free money to pay for healthcare expenses you expect to have over the coming year

How health care FSA works

You estimate what you and your family’s out-of-pocket costs will be for the coming year. Eligible expenses include office visits, surgery, dental and vision expenses, prescriptions, even eligible drugstore items.
You can contribute up to the annual limit set by the IRS. Contributions are deducted from your pay pretax, meaning no federal or state tax on that amount.
During the year, you can use your FSA debit card to pay for services and products. Withdrawals are tax-free as long as they’re for eligible healthcare expenses.

Other Points to Remember

You must re-enroll in the Flexible Spending Account(s) each year in order to participate. FSA elections do not automatically rollover year to year
Eligible expenses must be incurred during the plan year from January 1, 2025 - December 31, 2025
Plan carefully when deciding how much you want to contribute to your account(s) for the year; you must use your funds by the end of the plan year or you will forfeit the remaining amount
Members have until March 1, 2026, to submit claims for reimbursement for claims incurred in the 2025 calendar year
Members will receive debit cards from Rocky Mountain Reserve

HSA & FSA Explained

Employees can put dollars away tax-free to pay for medical expenses via Flexible Spending Accounts (FSA) and/or Health Savings Accounts (HSA).

It is important to understand the differences between the two account types and choose the account that is right for you.

HSA:

In order to contribute to an HSA, employees must be covered under a qualified High Deductible Health Plan (HDHP). Per IRS guidelines, a HDHP may not allow for first dollar coverage, outside of preventive care, until the member satisfies their deductible.

While contributions can only be made while enrolled on a HDHP, these dollars are available for use at any point in the future, regardless of coverage. The dollars are owned by the employee, can be invested with no tax on the growth of the assets, and they never expire.

FSA:

Employees may contribute to an FSA regardless of health plan enrollment, however, if the funds are not used by December 31st, the funds are forfeited.

The following FSA options are available for employees:

Healthcare FSA for medical expenses
Dependent Care FSA for expenses tied to care of qualified dependents

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