Health Saving Account (HSA)

If you enroll in the SavingsPlus HSA plan (the ‘SavingsPlus Plan”), you have the option of making pre-tax contributions to a Health Savings Account (HSA). The HSA is administered by PayFlex.

Broadridge also makes a quarterly contribution to your HSA based on your coverage election under the SavingsPlus Plan, totaling up to $500 for the year if you cover yourself only and up to $1,000 if you cover at least one other dependent. You must open a PayFlex HSA to receive the Broadridge contribution (this step may only be completed online in the Benefits Enrollment portal > My Benefits Enrollment > Health and Welfare tab (or through the Life Event tab > Change in HSA if you need to “agree” to open your account mid-year), however, you do not have to make your own contributions to the HSA. The Broadridge contribution is pro-rated if your HSA is opened after January 1st. If you have questions about how to “agree” to open a PayFlex HSA, please contact the Benefits Service Center, +1 877 869 5182.

The HSA is a great savings vehicle:

You can use the money for medical expenses today or save it for the future. Distributions used for expenses other than qualified medical expenses are subject to both taxation and an additional 20% penalty unless you are at least age 65 or permanently disabled. Any unused funds, including the Broadridge contributions, are yours and can be used for expenses into retirement.

The IRS sets the maximum contribution limits to your HSA each year.

For 2021, the IRS maximums are:

*These limits include the Broadridge contribution

**These amounts assume you receive the maximum annual Broadridge contribution. Eligible individuals who are 55 or older by the end of the tax year can increase their contribution limit up to $1,000 a year.

See the full details of the SavingsPlus plan here.

Limited Purpose Flexible Spending Account

If you enroll in the SavingsPlus HSA, you can also contribute to a Limited Purpose Health Care Flexible Spending Account. You are not eligible to contribute to a general purpose Health Care Flexible Spending Account if you contribute to an HSA. The LPFSA can be used for dental and vision expenses only. Note that with the LPFSA, you must use your funds each year or any unused balance does not carry over.

Click here to compare the HSA and Health Care FSA.

Eligibility to participate in an HSA is linked to your election under the SavingsPlus Plan option , which is a qualified high deductible health plan. In addition, under the Internal Revenue code, to contribute to an HSA you:

• Cannot have other coverage that pays for out-of-pocket health care expenses before you meet your plan deductible
• Cannot be enrolled in Medicare, Medicaid, or Tricare
• May not be claimed as a dependent on another person’s federal tax return
• Cannot participate in a full Health Care FSA. For associates enrolled in the SavingsPlus Plan option, Broadridge offers a Limited Purpose Health Care FSA (LPFSA) that can be used to pay for dental and vision expenses, but not medical expenses (details above)

See Publication 969 for IRS information related to Health Savings Accounts.

This information is not intended to provide you with personal tax or financial planning advice. Broadridge does not guarantee, and does not have any responsibility for the tax, legal, or other implications of an individual’s participation in or contributions to an HSA. It is recommended that you review your individual situation with your personal tax advisor.