INSIGHTS for NOVEMBER

1. OPEN ENROLLMENT for Active Participants on the Healthflex plan is happening! October 30 – November 14th!  Make sure you get your elections done! Contact Lameise Turner or Cheryl Weaver in the Benefits Office if you need help.
2. Learn the differences between HSA/FSA/HRA accounts. (see article below)
3. Lunch and Learns will continue and we need your input! (see article further down)
4. Beneficiary? Do you have one listed in your Benefits Access? You can easily check online and a form is available to manage your beneficiaries. (see below)

Health Savings? (HSA, FSA, HRA?) WHAT’S THE DIFFERENCE? 

Health savings accounts are great tools to save money for qualified health expenses. They are also the alphabet soup of acronyms. Here’s some information to help you make sense of what might be the best option for you!
An HSA can be used to pay for eligible health-related expenses that are not reimbursed through the health plan. Common eligible expenses include annual deductibles, co-payments, co-insurance, and other out-of-pocket expenses for medical, prescription drug, and behavioral health care services and eligible supplies, as well as eligible expenses related to vision and dental. For some people, the HSA is an attractive offering because they can save pre-tax money for future medical expenses, including retiree health costs, while still being able to access at any time for eligible expenses. HSAs can be a great tool for long-term, tax-advantaged health savings. However, they have unique rules, restrictions, and tax implications.

An HSA is a triple federal tax-advantaged account when paired with an IRS “qualified high-deductible health plan” (e.g., a HealthFlex HSA Plan):

1. HSA contributions are made on a pre-tax basis.
2.  HSA interest or investment earnings accrue tax deferred.
3.  HSA withdrawals are tax-free for eligible expenses.
    

Your HealthFlex HSA may include employer funding at the beginning of the plan year. The contribution amount varies based on which HSA Plan is selected (H2000, H2500 or H5000) and selection of individual or family coverage. In addition, you have the option to add your own contribution to the HSA through pre-tax payroll contributions, or by sending personal contributions directly to the HSA custodian (HealthEquity) at any time during the year. The IRS determines maximum-allowed HSA contributions (i.e., contribution limits) each year. The annual contribution limits apply to total HSA contributions, which include employer funding plus optional contributions you make to the HSA. Limits for 2025 are: $4,300 self, $8,550 family, and individuals over age 55 may contribute an extra $1,000 per year. HSA funds are pre-tax, and you can roll over any unused balance.

An FSA, or Flexible Spending Account, works similarly, but there are some differences. If you elect a health care FSA, you can elect to set aside part of your compensation on a before-tax basis to reimburse yourself for certain eligible health care expenses that are not otherwise reimbursed or reimbursable from the group health plan component of HealthFlex or from some other source. The entire amount you elect is available on the first day of the plan year, which can be useful to cover out-of-pocket expenses before the deductible has been met. Paycheck deductions continue over the course of the year. FSAs have certain “use it or lose it” rules, based on Internal Revenue Service (IRS) guidelines. This means that account balances not spent by the specified deadline will be forfeited. In other words, if you don’t “use” your FSA money by the deadline, you will “lose” it. There is a small amount you can carry over into the next year, ($640 for 2024). You can end up with both an FSA and an HSA, but in this case, your FSA will be a limited use one, it will pay for Dental and Vision expenses until the IRS defined deductible has been met. Contact the Benefits Office if you need more information. 

HRA’s are similar to the HSA’s but are used with the C2000 and C3000. The HRA funds are added by the plan and participants cannot contribute to them. If you wish to have pre-tax money available to use for health-related expenses and you choose the C2000 or C3000 plans, you are eligible to set up a Flexible Spending Account (FSA). The FSA will pay first, then the HRA. Unused HRA funds rollover each year, but again, it is not a fund the participant pays into. If you need more information on which health savings vehicle might be right for you, contact your Conference Benefits Officer.
*Information curated from Wespath.

LUNCH and LEARNS

In November, our Lunch and Learn will focus on Clergy taxes. Please note this is a very high-level overview of clergy taxes as well as some tips for making your tax season a little bit easier. No tax advice will be given.
Join us, Wednesday, November 20 at 11:30 a.m.
Register here.
 
The December Lunch and Learn has been moved to TUESDAY, DECEMBER 17 at 11:30 a.m. This will be a special Advent-themed gathering. Please note the date/time change.
Register here.

As we are getting ready for 2025, we’d like to hear from you! What would you like to see us focus on for our Lunch and Learns?
Complete a short survey here.

BENEFICIARIES

Fall is a great time to make sure your beneficiaries are up to date! 

Your beneficiaries receive your eligible retirement and welfare benefits after you pass away when the benefit is payable. You can designate one or more individuals, a trust, an organization or other legal entity as a beneficiary. If you do NOT have anyone listed, your remaining balance and any death benefit will be paid out to the ESTATE in your name. Then the estate must go through the proper legal channels (probate) before anyone receives any money. This takes time. It takes a lot less time to simply check your beneficiaries in your Benefits Access on Wespath.org. If you do not have any listed, you can click on the link on the beneficiary page for a form to complete and email in to activeteam@wespath.org.
No one outside of you and Wespath has access to your beneficiary page.

It is important that you ensure it is up to date. If you need help, contact Cheryl or Lameise. 

The form can be found here.