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)
Limited purpose flexible spending account (LPFSA)
Dependent care flexible spending account
Commuter benefit
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.
HSA | LPFSA | |
|---|---|---|
| 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.
