LWG offers three tax-advantaged accounts that can help you save money on healthcare and dependent care expenses: a Health Savings Account (HSA), a Flexible Spending Account (FSA), and a Dependent Care FSA. Each option allows you to set aside pre-tax dollars for eligible expenses, helping you better manage costs throughout the year.
Health Savings Account (HSA)
What Is an HSA?
An HSA is a special savings account that allows you to set aside money tax-free to pay for eligible healthcare expenses. HSAs are available only if you are enrolled in a High-Deductible Health Plan (HDHP). Funds in your HSA roll over year to year and belong to you, even if you change jobs or retire.
Who Benefits Most?
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Team members enrolled in an HDHP
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Those who want to save for both current and future healthcare expenses
Why Consider an HSA?
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Tax advantages: Contributions are tax-deductible and withdrawals for eligible medical expenses are tax-free
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Rollover: Unused funds carry over each year
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Flexibility: Funds may be used for a wide range of eligible medical, dental, and vision expenses
Flexible Spending Account (FSA)
What Is an FSA?
An FSA allows you to set aside pre-tax dollars to pay for eligible healthcare expenses such as copays, prescriptions, and certain over-the-counter items. Unlike an HSA, FSA funds generally must be used within the plan year, so planning is important.
Who Benefits Most?
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Team members with predictable medical expenses
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Those looking for immediate tax savings on healthcare costs
Why Consider an FSA?
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Immediate tax savings: Contributions reduce your taxable income
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Helpful for planned expenses: Ideal for known or recurring medical costs
Dependent Care FSA
What Is a Dependent Care FSA?
A Dependent Care FSA allows you to use pre-tax dollars to pay for eligible dependent care expenses, such as daycare, preschool, after-school programs, or care for an eligible adult dependent.
Who Benefits Most?
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Parents or guardians paying for childcare
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Team members caring for dependents who require supervision while they work
Why Consider a Dependent Care FSA?
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Tax savings: Use pre-tax dollars for dependent care expenses
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Cost relief: Helps reduce the financial burden of necessary care services
Why Consider These Accounts?
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Save money: All three options reduce your taxable income
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Plan ahead: Helps manage predictable healthcare or dependent care costs
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Long-term value: An HSA can be especially helpful for future healthcare planning
Important Reminder
Eligibility, contribution limits, and eligible expenses are governed by IRS rules and plan documents. These accounts are optional and elections must be made during benefits enrollment.
