Save Smarter Today. Plan Confidently for Tomorrow
(An “*” indicates that you may need to enroll in other benefits first or meet certain health criteria to be eligible.)
Take advantage of the savings opportunities available through your benefits package. As a benefits-eligible employee, you have access to a variety of tax-advantaged savings accounts designed to help you plan for healthcare expenses, dependent care needs, and future financial goals. Whether you are looking to save for current expenses or build long-term financial security, these accounts can provide valuable flexibility and savings. In this newsletter, we’ll highlight the available options, key benefits, and how you can make the most of these resources.
Health Savings Account (HSA)*
An HSA is a tax-advantaged account that helps employees save and pay for eligible healthcare expenses using pre-tax money
Quick overview
- Contributions are made with pre-tax dollars, reducing taxable income.
- Funds can be used tax-free for eligible medical expenses.
- Unused money rolls over, year after year.
- The account belongs to you, even if you change jobs.
- Can help prepare for future healthcare and retirement expenses.
- You can change your contribution limit at any time during the year without a life event.
- Cannot contribute to account if enrolled in any part of Medicare, including “Part A.”
Let’s break down each banking option you have through Kettering Health:
- Fidelity
- $4.50 quarterly admin fee; waived if balance is above $5,000
- No application needed
- Easy-to-use investment options for funds
- Friendly user interface
- Kettering Health Credit Union
- $0 monthly admin fee
- Application is required to open account. Complete form through your benefit election or reach out to Doug.Baumgartner@ketteringhealth.org for more information.
- Two free debit cards (for you and a spouse)
2026 HSA Contribution Limits
- Individual coverage: $4,400
- Family coverage: $8,750
- Catch-up contribution (age 55-plus): Additional $1,000
For more information, click here for the Health Savings Account (HSA) knowledge article.
*Available only to employees enrolled in the HDHP Medical Plan
Healthcare Flexible Spending Account (HCFSA)*
A Healthcare FSA is a tax-advantaged account offered by Kettering Health that lets you set aside pre-tax money to pay for eligible medical expenses. You can use it for costs such as doctor visits, prescriptions, co-pays, dental care, vision expenses, and some over-the-counter items. Contributions are deducted from your paycheck before taxes.
Quick overview
- Funds are frontloaded at the beginning of the year. You will pay back your balance as the year progresses through your paycheck contributions.
- The maximum you can contribute is $3,400 for 2026. (Up $100 from previous year as you plan for 2027).
- “Use-it-or-lose-it” account meaning unused funds may expire at the end of the plan year. Please note, Kettering Health does allow employees to roll over a maximum of $680 of unused funds into the new plan year.
- Healthcare FSAs are different from HSAs because they are employer-sponsored and normally cannot be kept if you leave your job.
- You must have a qualifying life event to change your FSA contribution at any time during the year, unlike an HSA.
Fun Fact: If you didn’t know you could use your FSA to pay for specific over-the-counter medications and products, that could be because it’s a recent change. The CARES Act passed in 2020, expanded the list of qualified medical expenses to include over-the-counter items.
- Yes, you can use your FSA on these example items: Band-aids, allergy/cold medications, sunscreen (SPF of 15+), pregnancy-related products, and even fertility treatments. The list goes on.
For more information, click here for the Navia knowledge article.
*Available to all benefit-eligible employees
Key takeaways
- HSA strengths: Long-term savings, investing, portability, retirement benefits, and rollover flexibility
- FSA strengths: Immediate access to the full annual contribution amount and no requirement for a high-deductible health plan (HDHP). Kettering Health allows partial roll-over.
- Best for long-term strategy: HSA
- Best for short-term predictable medical expenses: FSA
Dependent Care Flexible Spending Account (DCFSA)*
A Dependent Care FSA is a pre-tax account that helps you pay for eligible caregiving expenses for dependents while you work or attend school.
Quick overview
- Contributions are taken from your paycheck before taxes, lowering your taxable income.
- Eligible dependents usually include children under 13 or qualifying adults who need care.
- Funds are only available as they are contributed through payroll deductions.
- Most Dependent Care FSAs are “use-it-or-lose-it.”
- The annual limit is $7,500, or if married and filing separately, $3,750.
- Kettering Health offers a childcare subsidy with this account. KH will match 50% of what you put into the DCFSA up to $1,500 for those married filing jointly or single, or up to $800 for those married filing separately.
Typical uses include:
- Daycare or preschool
- Before- and after-school programs
- Summer day camps
- Adult daycare for elderly dependents
Reminder: Your provider must be state licensed if providing care for six or more children at the same time. The services may be as informal as your neighbor or parent caring for your children after school. However, you need to remember that you will be required to provide the tax identification number or Social Security number of your dependent care provider.
For more information, click here for the Navia knowledge article.
*Available to all benefit-eligible employees
Adoption Assistance Flexible Spending Account*
An Adoption Assistance FSA is an employer-sponsored benefit that lets you set aside pre-tax money to help pay for eligible adoption expenses. It can reduce your taxable income and help offset some of the costs involved in adopting a child.
The Adoption Assistance Benefit will reimburse adoption-related expenses as indicated below:
- Domestic adoptions
- Foreign adoptions only if finalized in same year
- Attorney or court fees
- Travel expenses (including meals and lodging) while away from home
- Home study and application fees
- Adoption agency fees
- Medical services and counseling
Common ineligible expenses include:
- Surrogate parent fees
- Fees to adopt a stepchild
- Fees for legal guardianship
So how does this work?
- The Adoption Assistance benefit provides a maximum benefit amount of $17,670 per individual or family for adoption-related expenses. Contributions are made through payroll deductions before taxes. Once you’ve incurred an eligible expense, you may submit a claim to Navia for reimbursement. Documentation of all fees, costs, and other expenses incurred in connection with the adoption of an eligible child must be submitted. Documentation could include, but is not limited to receipts, canceled checks, credit card statements, and/or paid stamped invoices confirming payment.
For more information, click here for the Navia knowledge article which also includes an attached flyer for adoption assistance.
*Available to all benefit-eligible employees