Savings and Spending Accounts

Overview

TreeHouse offers employees several saving and spending accounts that allow you to elect how much you'd like to contribute. Funds are deducted from your paycheck pretax, which lowers your taxable income. The money you withdraw is also tax-free when used for eligible expenses.

TreeHouse offers the following accounts:

Health Savings Account (HSA) - available to employees who are enrolled in the Consumer 2250 and Consumer 3000 Plans
Flexible Spending Accounts (FSAs):

Health Care FSA - available to employees enrolled in the TreeHouse PPO Plan or who waive medical coverage
Dependent Care FSA - available to all employees

You must re-enroll in these plans every year if you want to participate—elections do not carry over from one year to the next.

Health Care FSA vs. HSA

Want to learn more? How is the Health Care FSA different from the Health Savings Account? Compare the Accounts.

Please Note:

Eligible expenses must be incurred by December 31 of the current plan year
Claims must be submitted by April 30 of the new plan year

	HSA	HEALTH CARE FSA
Who can participate?*	Employees enrolled in the Consumer 2250 and 3000 Plans	Employees enrolled in the TreeHouse PPO Plan Employees who waive medical coverage for the plan year
What happens to unused contributions?	They remain in your account for future eligible health care expenses	They're subject to the "use it or lose it" rule and are forfeited in accordance with the reimbursement deadlines outlined below
How are contributions made?	Contributions for both accounts are deducted from each paycheck on a pretax basis
Who can contribute to the account?	You If you're eligible, TreeHouse makes a contribution too	You Contribute your own money via payroll deduction
How much can you contribute?	Employee-only coverage: up to $3,850 Family coverage: up to $7,750 If you are 55 or older, you can deposit up to an additional $1,000	Up to $2,850
Can you change your contribution amount outside of Open Enrollment?	Yes. You can change your contribution amount or stop contributing at any time	No. You can only change your contribution amount if you experience a qualifying life event, such as a birth, marriage or change in employment status
What expenses are eligible?	Deductibles, coinsurance and copayments for medical, dental and vision care Prescription drugs Eye exams, glasses, contact lenses and solution, and sunglasses when prescribed for a medical condition Hearing exams and hearing aids Lasik surgery And more—for a complete list, refer to IRS Publication 502
What are the deadlines for reimbursement?	None. Your funds carryover from year to year	Eligible expenses must be incurred by December 31 Claims must be submitted by April 30 of the next plan year
Who administers this benefit?	Optum Bank	TaxSaver

*Keep in mind you cannot have a Health Care FSA and HSA at the same time (this is a tax law). If you currently have a Health Care FSA and plan on enrolling in the Consumer 2250 or Consumer 3000 Plan, be sure to spend down and get reimbursed for all expenses from your FSA first.

How much could you save?

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

Without an HSA or FSA, Jennifer 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
Her total tax savings for the year with an HSA or FSA	$813

Note: This is a hypothetical illustration 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 (HSA)

If you enroll in either the Consumer 2250 or Consumer 3000 Plan, you may open and contribute money to a Health Savings Account (HSA) through Optum Bank. TreeHouse will automatically set up your HSA through Optum Bank. The HSA is a tax-free savings account you can use to help cover the costs of your health care at any time—even in retirement. You may be required to provide additional information to Optum Bank in order to open your HSA. Funds cannot be deposited until your account is open.

You can log in to Empower and access your Optum account without having to log in a second time. This will allow you to manage current medical expenses with the flexibility to save for retirement.

HSA Features

Contribution from TreeHouse (if eligible). Depending on the plan and coverage level you choose as well as your annual base salary, you may qualify for a contribution from TreeHouse—see the chart below for details.

You can save, too. You can also contribute to your HSA through automatic, pretax payroll deductions. Change your contribution amount at any time during the year. The limits on total contributions to your account (your personal contribution plus any contribution from TreeHouse, if applicable) are:

Employee-only coverage: up to $3,850
Family coverage: up to $7,750
Age 55 or older: You may contribute an additional $1,000

Works like a bank account. Pay for eligible medical, dental and vision expenses for you and your family by swiping your HSA debit card, or reimburse yourself for payments you've made (up to the available balance in the account). Spend the money on:

Deductibles
Coinsurance
Prescription drugs
Out-of-pocket expenses
And more—for a complete list, refer to IRS Publication 502

No tax on contributions or withdrawals. Contributions are made from your paycheck on a pretax basis, and the money will never be taxed when used on eligible expenses.*

It's your money. Unused money can be carried over each year and invested for the future—you can even take it with you if you leave TreeHouse or use it in retirement.

How the CDHP and HSA Work Together

*Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified 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.

TreeHouse Contributes to Your HSA

TreeHouse will make the full HSA contribution in January 2022 for anyone who enrolls during Open Enrollment. For new hires, TreeHouse will make equal, prorated contributions each pay period following enrollment through the end of the plan year. Contributions are based on your annual base salary and the medical plan and coverage level you choose. If you move from one tier to another, your HSA contribution from TreeHouse will increase. This could happen if you get married or have a child and increase your coverage tier.

	Consumer 2250	Consumer 3000
If your annual base salary is less than $64,999, TreeHouse contributes:
Employee-only	$600	$200
Employee and Spouse or Child(ren)	$900	$300
Family (Employee and Spouse and Child(ren)	$1,200	$400
If your annual base salary is $65,000 or more, TreeHouse contributes:
Employee-only	$600	Not applicable
Employee and Spouse or Child(ren)	$900	Not applicable
Family (Employee and Spouse and Child(ren))	$1,200	Not applicable

Flexible Spending Accounts (FSAs)

Save money on health care and/or dependent care expenses by using a Flexible Spending Account (FSA). The money you contribute to these accounts comes from your paycheck before it is taxed, and you withdraw it tax-free when you pay for eligible expenses. To learn more about your FSA options, see the Flexible Spending Account Summary.

Health Care FSA

Available if you enroll in the TreeHouse PPO Plan or if you waive medical coverage

Contribute up to $2,850 annually to help cover qualified medical, vision and dental expenses. For a complete list of eligible expenses, refer to IRS Publication 502
You will receive a debit card to pay for your eligible expenses
Choose your contribution amount once a year (if your personal situation changes, such as getting married or having a baby, you may be able to change your election during the year)
Your entire annual contribution is available to you from the beginning of the plan year
Don’t forget to incur expenses by December 31 of the Plan Year—unused funds do not carry over at the end of the year

Dependent Care FSA

Available if you enroll in any TreeHouse medical plan or if you waive medical coverage

Contribute up to $5,000 a year to help cover your qualified dependent care expenses, such as child daycare or elder care. For a complete list of eligible expenses, refer to IRS Publication 503
Get reimbursed by submitting a claim
Eligible expenses include child care for children up to age 13 and care for dependent elders
Don’t forget to incur expenses by December 31 of the Plan Year—unused funds do not carry over at the end of the year

You must use your FSA balance by December 31 of the current plan year to be eligible for reimbursement beginning the next plan year. You will have until April 30 of the new plan year to submit those expenses for reimbursement.