3 Important Facts About Tax-Saving Accounts

From the July 2013 Benefits eNews

BMC benefits help you live a healthier life—personally, professionally, financially and physically. Part of achieving financial health is taking advantage of the tax-savings features of Flexible Spending Accounts (FSAs), the Health Spending Account (HSA), and the BMC 401(k) Savings Plan account. Here are three important rules to remember about these accounts:

  1. With the FSAs and HSA, you choose your annual contribution during annual enrollment.
  2. With FSAs, you can change your election only if you have a qualified family status change (also called a life event). Examples include the birth of a child or divorce.
  3. With the HSA and the BMC 401(k) Savings Plan, you can change the amount you contribute as many times as you like during the year.  See detailed instructions on how to change your HSA contributions during the year here.

Good to Know

For 2013, the annual IRS limits are:

401(k)2013 Limit
Total before-tax and Roth contributions$17,500
Catch-up contributions (if age 50 and above)$5,500
Health Savings Account2013 Limit
Employee-only coverage$3,250
Other coverage levels$6,450
Catch-up contributions (if age 55 and above)$1,000
Topics:
Flexible Spending Account (FSA) Health Savings Account (HSA) 401(k) Saving Money