You can save money by paying for eligible health care and dependent care expenses with Savings & Spending Accounts. Xerox offers you several types of accounts that lower your taxes and help you budget for health care and dependent care expenses.
2024 accounts
- Health Savings Account (HSA): Available only to employees who are enrolled in the Choice Lower Deductible Plan or Choice Higher Deductible Plan
- Flexible Spending Accounts (FSAs):
- General Purpose Health Care FSA: Available to employees who are enrolled in the Network Only Plan, or do not elect medical coverage through Xerox
- Limited Purpose FSA: Available to employees who are enrolled in the Choice Lower Deductible Plan or Choice Higher Deductible Plan
- Dependent Care FSA: Available to all employees, regardless of medical plan election
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.
Note: You must actively enroll during your New Hire event if you want to contribute to a General Purpose Health Care, Limited Purpose and/or Dependent Care FSA.
*Contributions are not subject to federal tax. They are currently subject to state tax in AL, CA, and NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA.
How 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 $480 in federal income tax, $100 in state income tax, and $153 in payroll tax. So, by contributing that $2,000 to his HSA or FSA, he’ll get $733 in tax savings for the year.
| Without an HSA or FSA, Tom would pay … | Savings |
|---|---|
| 24% in federal income tax | $480 |
| 5% in state income tax* | $100 |
| 7.65% in payroll tax | $153 |
| His total tax savings for the year with an HSA or FSA | $733 |
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.
*Contributions are not subject to federal tax. They are currently subject to state tax in AL, CA, and NJ. Consult with your tax advisor to understand the potential tax consequences of enrolling in an HSA.
With the Choice Lower Deductible Plan or Choice Higher Deductible Plan, you’re eligible to open and contribute money to a Health Savings Account (HSA) through HealthEquity. The HSA is a tax-free savings account that you own. You can use it to pay for eligible health expenses anytime, even in retirement.
Get triple tax advantages with an HSA
Put money in tax-free.
- Contribute to your HSA through before-tax payroll deductions (up to IRS annual limits).
- Change your contribution amount anytime.
You may also receive company contributions. See the Xerox contributions section below to learn more.
Pay for care tax-free.*
- Pay for eligible medical, dental, and vision expenses for you and your family using your HSA debit card (provided sufficient funds are in your account).**
- Track your spending, check your balance, reimburse yourself, and more on the HealthEquity website.
Grow money for the future tax-free.
- All the money in your HSA is yours to keep; any remaining balance rolls over year after year. There is no “use it or lose it” feature.
- You own your account and can take it with you, even if you leave Xerox.
- You can build up savings to pay for future health care expenses and invest your money once your balance reaches $1,000.
- When you retire at age 65 or later, you may be able to transfer any remaining balance in your account to another qualified tax plan, such as an Individual Retirement Account (IRA).
Contribution limits
The IRS sets annual limits on the total amount of money that can be contributed to your HSA. In 2024, the limits on contributions are:
- $4,150 for employee-only coverage
- $8,300 for family coverage
Add $1,000 to these limits if you’re age 55 or older.
Note: Your HSA election amounts are per paycheck. Please make sure to check your elections when you enroll to ensure you have the correct per paycheck amount.
Xerox contributions
If you are eligible, Xerox automatically makes a contribution to your account, based on your pay. Note that the contribution limit applies to both your contribution and Xerox’s contribution.
| Annualized Pay | Xerox Contribution |
|---|---|
| $40,000 or less | $400 Employee $800 Family |
| $40,001+ to $80,000 | $250 Employee $500 Family |
| $80,001+ to $120,000 | $125 Employee $250 Family |
| More than $120,000 | None |
The company contribution you receive for 2024 will be prorated based on the timing of when your HealthEquity Health Savings Account is opened and you have passed the US Patriot Act requirements. The US Patriot Act requires all financial institutions to obtain, verify, and record information that identifies each person who opens a Health Savings Account. As a result, you may be asked to provide your name, address, date of birth, and other information that will allow the account administrator to identify you.
Who’s eligible for an HSA?
In order to establish and contribute to an HSA, you:
- Must be enrolled in the Choice Lower Deductible Plan or Choice Higher Deductible Plan.
- Cannot simultaneously participate in the General Purpose Health Care FSA, including a spouse’s or domestic partner’s (participation in a Limited Purpose FSA is allowed).
- Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare, TRICARE, or a health plan sponsored by your spouse’s or domestic partner’s employer (unless that plan is also a qualified high deductible health plan).
- Cannot be claimed as a dependent on someone else’s tax return.
At age 65, HSA contributions will automatically stop.
You should review IRS rules for making HSA contributions if you will turn age 65 during the year.
You can contact the Xerox Benefits Center to learn about the options available to you.
For more information, see IRS Publication 969.
Increase your tax savings with a Limited Purpose FSA
Use your HSA together with a Limited Purpose FSA for additional tax savings.
Flexible Spending Accounts (FSAs) offer a great way for you to save on taxes and budget for the health care and dependent care expenses you expect to pay during the year.
General Purpose Health Care FSA
Available to employees who are enrolled in the Network Only Plan, or do not elect medical coverage
Contribute up to $3,050 for the year through before-tax payroll deductions to help cover eligible medical, vision, and dental expenses.
Choose
Choose your contribution amount when you enroll. You can only change it during the year if you experience a qualifying change in status, so estimate carefully.
Contribute
Your annual contribution will be divided into equal payroll deductions. The entire amount is available to you from the beginning of the plan year.
Spend
Spend your money by using your FSA debit card, or log in to the HealthEquity website to request reimbursement for payments you’ve made.
Use It Up
Unused money does not carry over at the end of each year on December 31st — use it or lose it! So be sure to plan carefully and use it up.
Limited Purpose FSA
Available only to employees who are enrolled in the Choice Lower Deductible Plan or Choice Higher Deductible Plan to offer additional tax-saving opportunities
Contribute up to $3,050 for the year through before-tax payroll deductions. This account can be used on eligible dental and vision expenses only. See a complete list of eligible expenses.
Choose
Choose your contribution amount when you enroll. You can only change it during the year if you experience a qualifying change in status, so estimate carefully.
Contribute
Your annual contribution will be divided into equal payroll deductions. The entire amount is available to you from the beginning of the plan year.
Spend
Spend your money by using your FSA debit card, or log in to the HealthEquity website to request reimbursement for payments you’ve made.
Use It Up
Unused money does not carry over at the end of each year — use it or lose it! So be sure to plan carefully and use it up.
Note that generally, domestic partners and their children are not considered tax-qualified dependents; therefore, expenses incurred for them generally are not eligible for reimbursement from the account. Consult with your tax advisor for details.
Dependent Care FSA
Available to all employees
Contribute up to $5,000* for the year through before-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.
Choose
Choose your contribution amount when you enroll. You can only change it during the year if you experience a qualifying change in status, so estimate carefully.
Contribute
Your annual contribution will be divided into equal deductions from each paycheck. You can only use money that has been deposited into your account.
Spend
Spend your money by using your FSA debit card, or log in to the HealthEquity website to request reimbursement for payments you’ve made.
Use It Up
Unused money does not carry over at the end of each year — use it or lose it! Be sure to use it up.
*Some restrictions apply:
- If you are married, and you and your spouse file separate tax returns, you can contribute up to $2,500. If your spouse has access to a separate dependent care FSA, he or she may also contribute $2,500 to his or her dependent care FSA.
- If you are a highly compensated employee earning more than $150,000 in 2023 (as defined by the IRS), you can contribute up to $2,700.
Note that generally, domestic partners and their children are not considered tax-qualified dependents; therefore, expenses incurred for them generally are not eligible for reimbursement from the account. Consult with your tax advisor for details.
Use it or lose it rule:
Plan your contribution amount to the FSAs carefully because you’ll lose unused funds at the end of the year. You have through December 31, 2024 (or your last day of employment, if earlier) to incur expenses. However, you can submit for reimbursement through June 30, 2025.
Puerto Rico employees are not eligible for the General Purpose/Limited Purpose Health Care or Dependent Care FSA.
| HSA | Limited Purpose FSA | General Purpose Health Care FSA | Dependent Care FSA | |
|---|---|---|---|---|
| Available with… |
Choice Lower Deductible Plan
Choice Higher Deductible Plan |
Network Only Plan
(Also available if you waive medical coverage) |
Any medical plan
(Also available if you waive medical coverage) |
|
| Receive company contribution | Depends on your salary | 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 the money for… | Eligible health care expenses for yourself and tax-eligible dependents | Eligible dental and vision expenses only | Eligible health care expenses | Eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders |
| “Use it or lose it” at year-end | No | Yes | Yes | Yes |
| Money is always yours to keep, even if you leave Xerox | Yes | No | No | No |