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Overview

You can save money on healthcare and dependent care expenses by paying for them with tax-free funds through tax-advantaged accounts. These allow you to set aside a certain amount from your paycheck before taxes are taken out. Then, you can use money tax-free to pay for eligible out-of-pocket healthcare and dependent care expenses.

You can choose from the following accounts:

  • Health Savings Account (HSA): Available only to employees who enroll in the UHC HDHP medical plan.
  • Flexible Spending Accounts (FSAs):
    • Health Care FSA: Available to all employees, except those enrolled in the UHC HDHP medical plan. You can use this account for eligible healthcare expenses.
    • Limited Purpose FSA: Available only to employees who enroll in the UHC HDHP with HSA medical plan or have an HSA through a spouse’s/domestic partner’s high deductible health plan. You can use this account for eligible dental and vision expenses only.
    • Dependent Care FSA: Available to all employees. You can use this account for eligible child and elder care expenses.

Tax-Advantaged Accounts Make a Difference

See how much contributing to an HSA or FSA could save you over the course of a year.

Without an HSA or FSA, you would pay…Savings
28% in federal income tax$560
5% in state income tax$100
7.65% in Federal Insurance Contributions Act (FICA) tax$153
Total tax savings for year with an HSA or FSA$813

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.

For more information about the HSA or FSA, visit the HealthEquity website or call 1-877-924-3967.

 

Health Savings Account

If you enroll in the UnitedHealthcare High Deductible Health Plan (HDHP) with HSA, you will also enroll in a Health Savings Account (HSA). Nutanix will contribute to your HSA, which is administered by HealthEquity. You can also make pre-tax* contributions to your HSA, up to the IRS limits as shown below. However, you don’t have to contribute to the HSA to receive the contributions from Nutanix.

Coverage Level Nutanix Contribution** 2022 IRS Maximum Maximum You Can Contribute***
Employee Only $600 $3,650 $3,050
Employee + Spouse/Partner and/or Child(ren) $1,200 $7,300 $6,100

* Contributions are pre-tax for federal income tax and most state income taxes, but are post-tax for California and New Jersey.

** Contributions from Nutanix are prorated when you join the plan during the year.

*** Catch-up contributions: You can contribute up to $1,000 more into your HSA if you are 55 or older, or will be turning 55, in 2022.

Key Features of an HSA

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Triple tax advantage:

The money you put into your HSA is pre-tax on a federal basis, and your money isn’t taxed when you take it out for qualified expenses. Finally, any earnings on your savings grow federally tax-free.

You own the account:

Your HSA funds belong to you—for good. That means you can keep your HSA funds from year to year, even if you change medical plans or leave Nutanix.

You control how you use it:

You can use your HSA funds to cover qualified expenses, or you can pay out of your own pocket and save your HSA funds for a later date.

You can invest your savings:

You have the option to invest your balance, once you meet the minimum threshold of $1,000, in a variety of investment options.

Save for medical expenses in the future:

By building up your HSA year over year, you’ll be able to use the funds to pay for your medical expenses in the future, even after retirement. Once you reach retirement age, you can choose to use your HSA for any expense, subject to regular taxes.

Only available with a high deductible plan:

By law, you can contribute to an HSA only if you are enrolled in a high deductible health plan.

HSA Eligibility Rules

Most employees are eligible to enroll in the HDHP plan; however, there are situations that prevent you from being eligible. You are not eligible to enroll in the new UHC HDHP with HSA if you:

  • Can be claimed as a dependent on someone else’s tax return.
  • Are covered by another healthcare plan that’s not a high deductible health plan.
  • Are enrolled in Medicare.
  • Are enrolled in or covered by a healthcare FSA* or Health Reimbursement Account (HRA), including one through your spouse’s/domestic partner’s employer.
  • Are covered by veterans’ benefits and have used Veterans Affairs medical services within the past three months.

*If you enroll in an HSA your healthcare FSA will move to a Limited Purpose FSA.

To learn more about the HSA, watch the How an HSA Plan Works video or review the HSA Investment Guide.

HealthEquity login details

  • First, enroll in your benefits.
  • Then, visit HealthEquity website to log in.
  • First-time users: Click Create your new username and password and follow the on-screen prompts to set up your account.
  • Existing users: Enter your current login credentials to access your account.

What happens after I enroll?

Once you enroll, you will receive your welcome letter and packet for your newly elected HSA within 14 days from passing the Customer Identification Program (CIP). There are several steps required for you to set up your account, which you can complete at any time, but within 60 days of the plan year start. You will see your prorated 2022 Nutanix contributions after the first of the month following your enrollment. Any contributions you elected will begin with this paycheck, too. Once you have set up your account and it has been funded, you are able to access the funds in your HSA for eligible healthcare expenses at any time. You can also save your funds, and once your account reaches $1000 you can choose to invest any amount over $1000 as you wish. See the HSA Investment Guide for more information.

 

Flexible Spending Accounts (FSAS)

Using a Flexible Spending Account (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.

Nutanix offers you three types of FSAs:

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Healthcare FSA

  • Not available if enrolled in the HDHP medical plan.
  • Pay for eligible healthcare expenses for you and your eligible dependents, such as plan deductibles, copays, coinsurance, vision and dental expenses (including orthodontia).
  • Contribute up to $2,750 in 2022.
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Limited Purpose FSA

  • Only available if enrolled in the HDHP medical plan
  • Pay for eligible dental (including orthodontia) and vision expenses for you and your eligible dependents (you can use your HSA for eligible medical expenses)
  • Contribute up to $2,750 in 2022
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Dependent Care FSA

  • Pay for eligible dependent care expenses, such as child day care (under the age of 13) or home care for tax-dependent adults, that are necessary for you and/or your spouse to work, look for work or attend school full-time.
  • Contribute up to $5,000 in 2022, or $2,500 if married and filing separately.
  • Grace period of 2.5 extra months after the end of the plan year to spend your funds.

Estimate carefully

Keep in mind, all FSAs are “use it or lose it” accounts—you forfeit any money left at the end of the year.

The FSAs are administered by HealthEquity. Learn more about the HealthEquity Healthcare FSA and the HealthEquity Dependent Care FSA including details about how to submit claims for reimbursement from your FSA.

What’s an eligible expense?

  • Healthcare FSA—plan deductibles, copays, coinsurance and other medical, dental and vision expenses. To learn more, see IRS Publication 502.
  • Limited Purpose FSA—dental and vision expenses. To learn more, see IRS Publication 502.
  • Dependent Care FSA—child day care, babysitters, home care for dependent elders, and related expenses. To learn more, see IRS Publication 503.

HealthEquity login details

  • First, enroll in your benefits.
  • Then, visit the HealthEquity website to log in.
  • First-time users: Click Create your new username and password and follow the on-screen prompts to set up your account.
  • Existing users: Enter your current login credentials to access your account.

Use your money!

With FSA money, you use it or lose it. If you have a balance left in your FSA as year-end approaches, try to spend as much of it as you can on eligible expenses. Request reimbursement or manage your account on the HealthEquity website.