What you need to know
To help you, as a Futureshaper, make the most of your hard-earned paycheck, Honeywell offers savings and spending accounts that allow you to set aside pretax dollars to use for expenses such as health care, dependent care, and commuting to work. These accounts lower your taxes and make it easier to budget. With the health savings account (HSA), you can even invest your contributions to allow them to grow for the future.
Meet the accounts
Health savings account (HSA)
An HSA is used to pay for qualified medical expenses now and in the future, because the balance rolls over from year to year. You may fund your HSA through pretax payroll deductions. Any amount of your HSA balance in excess of $1,000 can be invested in select mutual funds, and interest is credited at the end of every month.
In 2023, the IRS allows you to contribute up to $3,850 for single coverage and $7,750 if you cover anyone else in your family. If you will be 55 or older during the plan year, you can contribute an additional annual catch-up contribution of $1,000. These limits include your contributions and any contribution made by Honeywell, if applicable.
You can enroll in the HSA and/or change your contributions at any time during the year.
Act today. Enroll or change your contributions on the
After you enroll the first time and select the amount you want to contribute, you will be contacted by Bank of America to authorize your account.
Learn how the HSA works
Limited purpose flexible spending account (LPFSA)
The LPFSA can be used to pay for eligible dental and vision expenses. While an HSA can also be used for this purpose, many people choose to save their HSA balance for other medical expenses, including health costs in retirement. An LPFSA cannot be used for medical expenses. See what is covered.
The LPFSA is a use-it-or-lose-it account. If you do not use your entire account balance by Dec. 31, any unused funds will be forfeited.
In 2023, you can contribute up to $2,850 before taxes.
You can only enroll in the LPFSA each year during Annual Enrollment, unless you have a qualified status change, such as getting married or your spouse loses coverage.
Dependent care flexible spending account
Enroll in the dependent care flexible spending account (DCFSA) to help pay for eligible dependent care expenses. These include before-school and after-school programs, day care, day camps, nanny care, preschool tuition, and eldercare expenses. Dependents include children under age 13 or older children and family members who need help caring for themselves.
The DCFSA is a use-it-or-lose-it account. If you do not use your entire account balance by Dec. 31, any unused funds will be forfeited.
The IRS allows you to contribute up to $5,000 (up to $2,500 if you are married and file taxes separately) to the DCFSA each year. For highly compensated employees (for income greater than $150,000), you can contribute up to $3,200 in 2023.
You can only enroll in the DCFSA each year during Annual Enrollment, unless you have a qualified status change, such as welcoming a baby into your household.
Learn more on the Bank of America website.
Set aside pretax money for taking public transit, including train, subway, bus, ferry and vanpool, to work. You can also set aside money for parking at or near work. Once you sign up, Honeywell deducts your contributions from your paycheck on a pretax basis.
The IRS allows you to set aside up to $280 per month pretax for public transportation and $280 per month pretax for eligible parking expenses. If you decide to contribute more, it’s on an after-tax basis. The full monthly amount will be taken from the first available paycheck each month.
You can enroll in Commuter Benefits at any time on the HealthEquity/WageWorks website.
- Register as a new participant, and follow the six required steps for a first-time user.
- At Step 1, the last four digits of your Employee ID (EID) is the required ID code.
If you have any questions, please call HealthEquity/WageWorks Customer Support at 877-924-3967.
How the health savings account (HSA) works
You and Honeywell can contribute to your HSA.
When you enroll in the HSA, you decide how much you would like to contribute from your paycheck on a pretax basis. This lowers your taxable income and allows you to save for current and future medical expenses. You are also able to make lump sum contributions directly to your HSA.
In 2023, the IRS allows you to contribute up to $3,850 for single coverage and $7,750 for family coverage. If you will be 55 or older during the plan year, you can contribute an additional annual catch-up contribution of $1,000. It’s important to note that these limits include contributions made by Honeywell, such as the one-time lump-sum contribution of $500 for those eligible for participation in the Quality Cancer Care program and complete it.
Manage your contributions into your account carefully. If you exceed the IRS maximum (which includes all contributions from you and Honeywell), you may be subject to tax penalties.
You can use your HSA to pay for current health care expenses.
You may use the HSA to pay for eligible out-of-pocket health costs such as paying your deductible and coinsurance. Prescription drug costs and some over-the-counter medications are also eligible.
If you use HSA funds for nonqualified expenses, the amount spent will be fully taxable, and you may be subject to a 20 percent penalty.
You will receive an HSA debit card from Bank of America that makes payment easy. If you prefer, you can pay providers using other funds and reimburse yourself for eligible health care expenses.
Once the balance in your HSA reaches $1,000, you can invest any amount over this limit, so your savings can grow.
Bank of America offers select mutual funds for investment. It’s easy to invest and manage those investments on their website. In addition, if you have an HSA from a previous employer, you can roll over the balance into your Bank of America account.
You can use your HSA to pay for future health care expenses, even in retirement.
You may decide not to use the fund in your HSA now so it can grow and be there for you later, when you might need it for something special, for example, to pay for LASIK eye surgery or expensive medical care needs in retirement.
The balance in your HSA rolls over from year to year and always belongs to you. In other words, it goes with you when you leave Honeywell.
For more information about anything related to your HSA, visit the Bank of America website.
HSA and LPFSA: Understand the key differences
To ensure that you make the most of these accounts, it’s important to understand their similarities and differences. Learn more about the different types of accounts.
|Eligibility for the account||Must be enrolled in Honeywell Medical Plan||Must be eligible for Honeywell Medical Plan|
|Must be enrolled in high-deductible health plan||Yes||No|
|Contributions are made on a pretax basis||Yes||Yes|
|Account balance over $1,000 can be invested||Yes||No|
|Investment income is tax-exempt||Yes||N/A|
|Unused balance lost or forfeited at end of the year||No||Yes|
|Account is yours to keep, even after leaving Honeywell||Yes||No|
|Can be used for out-of-pocket expenses now||Yes, medical, pharmacy, dental and vision||Yes, dental and vision ONLY|
|Can be used for out-of-pocket expenses in retirement||Yes||No|
|IRS sets a contribution maximum (limits for each are shown above)||Yes||Yes|
There’s an app for that. Many of our benefits partners, including Bank of America, have mobile apps.