3 Important Facts About Tax-Saving Accounts
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:
- With the FSAs and HSA, you choose your annual contribution during annual enrollment.
- 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.
- 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 |
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Total before-tax and Roth contributions | $17,500 |
Catch-up contributions (if age 50 and above) | $5,500 |
Health Savings Account | 2013 Limit |
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Employee-only coverage | $3,250 |
Other coverage levels | $6,450 |
Catch-up contributions (if age 55 and above) | $1,000 |