You can save money by paying for eligible health care and dependent care expenses with savings and spending accounts. Mosaic offers you several types of accounts that lower your taxes.
2024 accounts
- Health Savings Account (HSA): Available only to employees who enroll in the Consumer Plan and meet certain eligibility requirements
- Flexible Spending Accounts (FSAs):
- Health Care FSA: Available to employees who enroll in the Traditional Plan, are not eligible for an HSA, or do not elect medical coverage through Mosaic
- Dependent Care FSA: Available to all employees
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
Contribute to your accounts easily and effortlessly.
Helpful budgeting tool
Plan for upcoming expenses by setting aside money each paycheck.
Note: You must enroll if you want to contribute to these accounts in 2024, even if you currently participate.
*Contributions are not subject to federal tax. However, HSA contributions are currently subject to state tax in CA, and both HSA and FSA contributions are subject to state tax in NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA and/or FSA.
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 get $733 in tax savings 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 illustration 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.
*Contributions are not subject to federal tax. However, they are currently subject to state tax in CA and NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA.
With the Consumer Plan, you may be eligible to open and contribute money to a Health Savings Account (HSA) through Cigna. The HSA is a tax-free savings account that you own. You can use it to pay for eligible health expenses anytime, even in retirement.
Get triple tax advantages with an HSA
1. Put money in tax-free.
You also get company contributions tax-free!
(Contributions are prorated for employees who join the plan after January 1.) |
2. Pay for care tax-free.*
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3. Grow money for the future tax-free.
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*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.
Contribution limits
The IRS sets annual limits on the total amount of money that can be contributed to your HSA. These limits apply to contributions from both you and Mosaic.
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| From Mosaic | From You | Total Allowed by IRS | |
|---|---|---|---|
| Employee Only | $750 | $3,400 | $4,150 |
| Employee + Dependents | $1,500 | $6,800 | $8,300 |
REMEMBER: If you are age 55 or older, you can contribute an additional $1,000 to your HSA.
Important Note: You can use your HSA for eligible expenses for yourself, your spouse, or a tax dependent. Expenses for your domestic partner, or child of your domestic partner, are not reimbursable from your HSA. And remember, once your account is set-up, ensure you log on to your HSA Bank account and add a beneficiary.
HSA Bank
For employees who choose the Consumer Plan, a Health Savings Account will be established with HSA Bank. You must provide a physical address (not a P.O. Box) when enrolling in order for HSA Bank to validate your account. Also, please note that employees are charged an annual maintenance fee of $22.20 for account services, which include a debit card for paying health care providers at the time of the office visit or pharmacy pick-up.
Who’s eligible for an HSA?
Not everyone can contribute to an HSA. To be eligible, you:
- Must be enrolled in the Consumer Plan or another qualified high-deductible medical plan.
- 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.
Using an FSA is like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money. There are separate FSAs for health care and dependent care.
Health Care FSA
Available to employees who enroll in the Traditional Plan, are not eligible for an HSA, or do not elect medical coverage
Contribute up to $3,200 for the year through pre-tax payroll deductions to help cover eligible medical, dental, and vision expenses.
Choose
Choose your contribution amount when you enroll. You can only change it during the year if your personal situation changes, so estimate carefully.
Contribute
Your annual contribution will be divided into equal payroll deductions, but the entire amount is available to you from the beginning of the plan year.
Spend
Spend your money by using your FSA debit card, or log in to the Cigna website to request reimbursement for payments you’ve made.
Use It Up
Unused money does not carry over at the end of each year – use it or lose it! So be sure to use it up.
Dependent Care FSA
Available to all employees
Contribute up to $5,000 for the year through pre-tax payroll deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders.
Choose
Choose your contribution amount when you enroll. You can only change it during the year if your personal situation changes so estimate carefully.
Contribute
Your annual contribution will be divided into equal deductions from each paycheck. You can only use money that has been deposited into your account.
Spend
Log in to the Cigna website to request reimbursement for payments you’ve made, up to your available balance.
Use It Up
Unused money does not carry over at the end of each year – use it or lose it! So be sure to use it up.
When can I submit my FSA expenses?
For any expense incurred in 2024, the deadline will be December 31, 2024. If you have 2024 expenses that need to be submitted after January 1, 2025, be sure to use a paper reimbursement form and not your FSA debit card. Your debit card should only be used to pay for eligible health care expenses incurred in the current plan year.
| Health Savings Account (HSA) | Health Care Flexible Spending Account (Health Care FSA) | Dependent Care Flexible Spending Account (Dependent Care FSA) | |
|---|---|---|---|
| Available with … | Consumer Plan | Traditional Plan (also available if you waive medical coverage) | Any medical plan (also available if you waive medical coverage) |
| Receive company contribution | Yes | No | No |
| In 2024, contribute up to … | $3,400 individual/$6,800 family (after Mosaic contribution); additional $1,000 allowed if age 55+) | $3,200
Note: Contribution maximum for 2024 still to be confirmed. |
$5,000*
Note: Contribution maximum for 2024 still to be confirmed. |
| Change your contribution amount anytime | Yes (changes are effective as soon as administratively possible) | No (only during Annual Enrollment or due to a qualified status change) | No (only during Annual Enrollment or due to a qualified status change) |
| Access your entire annual contribution amount at the beginning of the plan year | No | Yes | No |
| Access only funds that have been deposited | Yes | No | Yes |
| Use the money for … | All eligible health care expenses | All eligible health care expenses | Eligible dependent care expenses, including child care for children up to age 13 and care for other qualified dependents |
| “Use it or lose it” at year-end | No | Yes | Yes |
| Money is always yours to keep | Yes, any remaining balance carries over year after year. You can even take it with you if you leave Mosaic. | No | No |
| Account earns interest | Yes | No | No |
*The limit is reduced to $2,500 if you are married but file taxes separately.