Overview

You can save money by paying for eligible health care and dependent care expenses with tax-advantaged accounts. Masonite offers you several types of accounts that lower your taxes.

2020 accounts:

  • Health Savings Account (HSA): Available only to employees who enroll in the Basic HSA or the HSA Plus medical plan
  • Flexible Spending Accounts (FSAs):
    • Health Care FSA: Available to employees who do not enroll in an HSA plan, or do not elect medical coverage through Masonite
    • Limited Purpose FSA: Available to employees who are enrolled in an HSA plan
    • Dependent Care FSA: Available to all employees

Key features

  • Tax-free money – Money goes in tax-free and comes out tax-free when it’s used for eligible expenses.
  • Convenient payroll deductions – Contribute to your accounts easily and effortlessly.
  • Helpful budgeting tool – Plan for upcoming expenses by setting aside money each paycheck.
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HSA vs. FSAs

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Manage your HSA and/or FSA at Discovery Benefits

iconHow much could you save?

Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $560 in federal income tax, $100 in state income tax, and $153 in FICA tax. So, by contributing that $2,000 to his HSA or FSA, he’ll get an $813 tax savings for the year.

Without an HSA or FSA, Tom 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
His total tax savings for the 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.

Health Savings Account

Learn more about HSA's

HSA video (Spanish version)

With the Basic HSA or the HSA Plus medical plan, you’re eligible to open and contribute money to a Health Savings Account (HSA) through Discovery Benefits. Masonite will contribute to your account, too!

The HSA is an individually-owned, tax-free, interest-bearing savings account that is used to pay for qualified health care expenses. The money in your HSA is always yours to keep any remaining balance rolls over year after year. You can take your HSA with you if you leave Masonite; it can even be used in retirement. If you enroll in Medicare while enrolled in the Basic HSA or HSA Plus medical plan, you are no longer eligible for contributions to your HSA, (bank account). If you are enrolled in the Basic HSA or HSA Plus medical plan or you are covered under a spouse’s plan and your spouse has a Flexible Spending Account (FSA), you are not eligible for the HSA (bank account).

HSA features

Put money in tax-free.
  • Contribute to your HSA through pre-tax payroll deductions (up to annual limits).
  • Change your contribution amount anytime.

Get company contributions.

Basic HSA Plan:

  • $350 for employee-only coverage
  • $700 if you cover dependents

HSA Plus Plan:

  • $600 for employee-only coverage
  • $1,200 if you cover dependents

(These amounts are prorated for new hires based on your hire date.)

Pay for care tax-free.*
Carry unused money over.
  • All the money in your HSA is yours to keep, year after year.
  • You can build up savings to pay for future health care expenses. You can even invest your money once it reaches a minimum balance, which gives you the potential for tax-free earnings growth and a way to plan ahead for your medical costs in retirement.
     

Contribution limits

For 2020, the limits on total contributions to your account (from both you and Masonite) are:

  • Up to $3,550 for employee-only coverage
  • Up to $7,100 for family coverage

Add $1,000 to these limits if you're age 55 or older.

iconIncrease your tax savings with a Limited Purpose FSA

Use your HSA together with a Limited Purpose FSA for additional tax savings. You can contribute up to $2,700 pre-tax to a Limited Purpose FSA to pay for dental and vision expenses.

*Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.

Flexible Spending Accounts

Using an 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.

Health Care FSA

Available to employees who enroll in the PPO Plan or do not elect medical coverage

  • Contribute between $0 and $2,700 annually through pre-tax payroll deductions to help cover eligible medical, vision, and dental expenses.
  • Choose your contribution amount during Annual Enrollment. You can only change your contribution amount during the year if your personal situation changes.
  • Spend your money by using your FSA debit card, or log in to the Discovery Benefits website to request reimbursement for payments you’ve made.
  • Your entire annual contribution is available to you from the beginning of the plan year.
  • Unused money does not carry over at the end of each year — use it or lose it. Be sure to estimate your expenses carefully!
  • You have until March 31st of the year following the end of a plan year to submit claims for expenses incurred from the previous calendar year. There is no grace period for incurring expenses.

Limited Purpose FSA

Available only to employees who enroll in an HSA 

  • Designed to work together with your Health Savings Account (HSA) for additional tax-saving opportunities that help you maximize your health care spending dollars.
  • Contribute up to $2,700 annually through pre-tax payroll deductions. This account can be used on eligible dental and vision expenses only. For a list of eligible expenses, refer to IRS Publication 502.
  • Choose your contribution amount during your new hire enrollment window. You can only change your contribution amount during the year if your personal situation changes and during Annual Enrollment.
  • Spend your money by using your FSA debit card, or log in to the Discovery Benefits website to request reimbursement for payments you’ve made.
  • Your entire annual contribution is available to you from the beginning of the plan year.
  • Unused money does not carry over at the end of each year — use it or lose it. Be sure to estimate your expenses carefully!
  • You have until March 31st of the year following the end of a plan year to submit claims for expenses incurred from the previous calendar year. There is no grace period for incurring expenses.

Dependent Care FSA

Available to all employees

  • Contribute up to $5,000 annually (or $2,500 if married and filing separate tax returns) through pre-tax payroll deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders.
  • The expenses must be incurred to enable you (and your spouse/domestic partner) to work. This account cannot be used to reimburse medical expenses.
  • Log in to Discovery Benefits to request reimbursement for payments you’ve made.
  • Choose your contribution amount during your new hire enrollment window. You can only change your contribution amount during the year if your personal situation changes and during Annual Enrollment.
  • Unused money does not carry over at the end of each year — use it or lose it. Be sure to estimate your expenses carefully!
  • You have until March 31st of the year following the end of a plan year to submit claims for expenses incurred from the previous calendar year. There is no grace period for incurring expenses.

Important information about FSAs:

  • Your contributions will be deducted from your paychecks in equal amounts during the plan year.
  • You must re-enroll in an FSA each year during the Annual Benefits Enrollment period in order to continue participating in that account.
  • FSAs are strictly governed by IRS regulations. For more details and a list of eligible expenses, you can refer to IRS Publications 502 and 503 available at www.irs.gov or call 1-800-TAX-FORM. If there is a discrepancy between Masonite’s guide and the IRS regulations, the IRS regulations will prevail.

Compare Accounts

  HSA Limited Purpose FSA Health Care FSA Dependent Care FSA
Available with … Basic HSA Plan
HSA Plus Plan
PPO Plan
(Also available if you waive medical coverage)
Any medical plan
(Also available if you waive medical coverage)
Receive company contribution Yes No No No
Change your contribution amount anytime Yes No No No
Access your entire annual contribution amount at the beginning of the plan year No Yes Yes No
Access only funds that have been deposited Yes No No Yes
“Use it or lose it” at year-end No Yes Yes Yes
Money is always yours to keep Yes No No No