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HSA and FSA 2025

PNC Bank (BenefitPlus) will continue to be the administrator for Â鶹ÊÓƵ's Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) in 2025.

If you are currently enrolled in an HSA or FSA, please be aware that you must use the Open Enrollment portal in Flashline to re-enroll if you wish to have an HSA or FSA in 2025. These accounts DO NOT AUTOMATICALLY RENEW.

 

HSA and FSA Comparison

HSA and FSA Comparison
ConsiderationHSA (Health Savings Account)FSA (Flexible Spending Account)
EligibilityMust enroll in a High Deductible Health Plan

Must be enrolled in a PPO Plan for Health Care FSA

No plan requirements for Dependent Care FSA

Contribution Limit

$4,300 single or $8,550 family

*amounts include an employer contribution

Medical FSA:    $3,200 single or family

Dependent Care FSA ("daycare"): $5,000

Change ContributionsStart, stop, or change amount anytime throughout the yearOnly during open enrollment or in the event of a life status change
Continuation and GrowthUnused balances roll over and can be invested. Your HSA goes with you if you leave the university.Use it or lose it. Funds must be used by March 15 of 2025, unless separating from the university. If separating, must be used within 30 days of final employment date.
How can I access my contributions to the Health Savings Account and/or the Flexible Spending Accounts?

Once enrolled in either the HSA or FSA, PNC Bank, which administers both the HSA and the FSAs for Â鶹ÊÓƵ, will send you a debit/credit card to access your accounts. If you lose your card or have questions about your PNC account, you can contact PNC through their website  or call their customer service at 844-356-9993.

HSAs

How do Health Savings Accounts work?

The Health Savings Account allows you to put money aside and withdraw it, tax-free, as long as you use it for qualified medical expenses like deductibles and copays. The IRS allows for $4,300 to be contributed to a Health Savings Account for single coverage and $8,550 for family coverage. Â鶹ÊÓƵ will contribute $1,300 dollars towards the Health Savings Account for employees enrolling in single coverage and $2,000 for enrolling in family coverage, and those dollars are yours to keep.

HSAs build tax-free interests, plus they roll over year to year. You can contribute to a Health Savings Account and increase or decrease contributions throughout the year. Again, the health savings account is yours to keep even if you leave or retire from Â鶹ÊÓƵ. There will be planned comparisons displayed in the Open Enrollment web pages under the medical plan area for your review.

Will Â鶹ÊÓƵ contribute to the 2025 Health Savings Account (HSA)?

Yes, Â鶹ÊÓƵ will again contribute $1,300 for a single high-deductible medical plan or $2,000 for a family high-deductible medical plan. For 2025, the IRS maximum TOTAL contribution limit is $4,300 for a single high-deductible medical plan and $8,550 for a family high-deductible medical plan. The employer contribution will be posted to your PNC HSA account 2-3 business days after your first pay date in 2025.

2025 HSA Contribution Limits

Coverage LevelKSU ContributionEmployee Contribution LimitIRS Maximum Limit
Single$1,300$3,000$4,300
Family$2,000$6,550$8,550
What is a HSA catch-up contribution?

Similar to IRAs and 401Ks, enrollees ages 55 and over can elect to make catch-up contributions of $1,000 above the IRS limit for individual and family plans.  

Is there any reason that I wouldn’t be able to enroll and contribute funds to a 2025 Health Savings Account (HSA)?

The IRS has set qualifying requirements to enroll in a health savings account, such as:

  • You must be enrolled in a qualified high-deductible health plan.
  • You must not have other medical coverage.
  • You must be 18 or older
  • You cannot be enrolled in Medicare
  • You cannot be claimed as a dependent on someone else's tax return.
  • You cannot be enrolled in a health care flexible spending account (FSA) or a health reimbursement account (HRA)

Individuals reaching the age of 65 and who are NOT enrolled in Medicare can have an HSA and contribute to it. Individuals enrolled in Medicare, cannot have an HSA. If Medicare enrollment is completed mid-year, the cardholder can continue using the HSA funds, but will lose the ability to contribute to the account. It is your responsibility to notify the university if you enroll in Medicare and are no longer eligible for an HSA.

For further questions on Medicare and the HSA, please contact PNC Customer Service at 844-356-9993.  

If I enroll in a High Deductible Health Plan (HDHP), can I still enroll in a Dependent Care Flexible Spending Account (DC FSA)?

If you enroll in a HDHP, you can still enroll in the dependent care ("daycare") flexible spending account, but you cannot enroll in the health care flexible spending account.

Learn even more about HSAs with PNC Bank's Health Savings Account Educational Library (PDF).

FSAs

How do Flexible Spending Accounts work?

You choose a total annual contribution for 2025 and that amount will be divided and deducted on a pre-tax basis from each of your paychecks. Â鶹ÊÓƵ front-loads this amount to your FSA in early January, giving you immediate access to funds in case you need them.

Your health and/or dependent care FSA contributions for 2025 must remain in effect through Dec. 31, 2025. IRS regulations do not allow increases, decreases, or cancellations of contributions during a plan year unless you have a qualifying life event such as marriage, divorce, birth, death, etc. Any FSA contribution changes you make must be consistent with the type of life event. Proof of the life event (qualifying event) is required and must be submitted within 31 days of the effective date of the change.

Qualified health and dependent care expenses incurred from Jan. 1 to Dec. 31, 2025, will be eligible for reimbursement from your FSA accounts. However, you can still use any remaining 2025 funds from your health care and/or dependent care funds to pay for qualified expenses until March 15, 2026. This means you will have until March 15, 2026, to spend your 2024 FSA funds before they are FORFEITED.

What is the difference between the Health Care FSA and the Dependent Care FSA?

The Health Care FSA provides you the opportunity to have funds deducted from your pay on a pre-tax basis for health care expenses for yourself AND your dependents. These funds can be used for expenses that are not covered by your medical, dental, or vision plans such as copays, coinsurances, etc. Eligible health care expenses examples are:

  • Medical, dental, and vision deductibles, co-insurance, and office visits
  • Prescriptions
  • Eligible over-the-counter drug expenses

The Dependent Care FSA provides you the opportunity to have funds deducted from your pay on a pre-tax basis for dependent care ("daycare") expenses for your eligible dependents. Dependent Care FSA funds become available with each payroll deduction. Eligible expenses examples include:

  • A child under age 13 and who is claimed as a dependent on your taxes.
  • A child 13 and older who: 1) depends on you for at least half of their support; 2) regularly spends at least eight hours a day in your household; and 3) is physically or mentally unable to care for him/herself.
  • Summer day camps
  • Before and after school care
  • Extended day programs
  • Elderly daycare

Learn even more about FSAs with PNC Bank's Flexible Spending Account Educational Library (PDF).

Can I enroll in both the Health Care and Dependent Care Flexible Spending Accounts?

If you are enrolled in the 85/60 PPO plan, you can contribute to both healthcare and dependent care FSAs.

How much can I contribute to an FSA?

According to the IRS, the maximum amount you can contribute to the Dependent Care (DAYCARE) FSA is $5,000 for a married couple filing a joint tax return or if filing separate tax returns are $2,500 per spouse. 

 

 

 

 

 

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