Health Savings, Flexible Spending and other reimbursement accounts

Health Savings Account (HSA)

If you enroll in the Health Fund, you may be eligible for a Health Savings Account. The HSA is a special bank account for eligible health care expenses. Dell contributes to your HSA, and you choose whether to make your own contributions — up to IRS limits. You pay no federal income taxes on contributions, earned interest (or investment earnings) or withdrawals — if used for eligible health care expenses.

You can use your HSA debit card to pay current health care expenses, or you can save your funds for the future. Unlike a flexible spending account (FSA), your balance rolls over each year, meaning there’s no “use it or lose it” rule. And the HSA is yours to keep, even if you leave Dell or get coverage elsewhere.You can easily manage your HSA online using the WageWorks website.

You’ll receive detailed information on accessing, using and managing your HSA after you enroll in the Health Fund.

Action required. In order to receive Dell’s contribution, you must elect an HSA through Your Benefits Resources (YBR) website (@ Work | Log in) when you enroll in the Health Fund — it doesn’t happen automatically. You can elect a $0 amount if you don’t plan to contribute to your HSA.

Who’s not eligible for the HSA?

Some team members cannot contribute to an HSA because of IRS rules, such as enrollment in TRICARE, Medicare, a full-service Health Care FSA or coverage other than an IRS-qualified high-deductible health plan. See other HSA eligibility restrictions at the WageWorks website.

Where the money comes from

Like any bank account, you must have money in your HSA before you can spend it. Because it’s a tax-free account, the IRS sets annual limits on HSA contributions (employee + employer) and adjusts the limits each year.

2017 HSA contributions

 

 

If you cover just yourself:

If you cover yourself and one or more family members:

Dell contributes:

 

 

  • Dell’s HSA Contribution (available in January)

$500

$1,000

  • Dell’s 2017 Bonus Contribution (available in February)

$250

$500

You can contribute:

  • The IRS allows you to contribute up to this amount tax-free:

$2,650

$5,250

How it adds up

$3,400

$6,750

Are you 55 or older in 2017?

  • You can contribute an
    extra $1,000.

$1,000

$1,000

*If you are hired after January 1, 2017, Dell’s 2017 contributions will be prorated based on your hire date.
**If you do not receive the full contribution from Dell, you may be able to contribute more, but your contribution cannot exceed the annual IRS maximum.

Making your own contributions

A good rule of thumb is to have enough in your account to cover your deductible — or more if you plan to have a number of medical expenses. Find out what works best for you by using:

  • The HSA Value Estimator and
  • ALEX®, the interactive benefits expert who can also help you decide how much you want to contribute to your HSA. Visit ALEX. (Problems with this link? Try Firefox® or Chrome.)

Your contributions go into your HSA with each paycheck throughout the year. You can also make lump-sum, tax-free deposits — like from a checking account or other sources — during the year, up to the annual maximum limit.

Still not sure? You can start, stop and change your HSA contributions at any time, based on your financial situation. If you have questions about how an HSA fits into your overall savings and investment strategy, please speak with a Fidelity Planning Consultant at 1-800-603-4015.

Your tax-free interest earnings are added to your account monthly.

What it’s for

Use your HSA to pay for eligible health care expenses for you, your legal spouse and your dependents (including children and domestic partners who are considered dependents for tax purposes). Eligible expenses include:

  • Health care copays
  • Dental work and orthodontia
  • Eye exams and eyeglasses
  • Contact lenses
  • Chiropractic treatment
  • Prescription medications
  • Mental health counseling

The IRS defines which expenses are eligible and ineligible. Be sure to keep your receipts. See a complete list of eligible expenses at the WageWorks website.

Note: If you enroll in an HSA, the IRS has rules about using an HSA with a traditional health care flexible spending account (FSA). Learn more about HSAs and FSAs.

HSA and dependents

  • Payments from your HSA for your domestic partner’s expenses are tax-free only if you claim him or her as a dependent on your taxes. Otherwise, those expenses will be taxable and subject to a penalty. Adult children who are not tax dependents do not qualify.
  • If your adult domestic partner and/or adult children are not tax dependents but are eligible and enrolled in the Health Fund, then your domestic partner and/or adult children may open their own HSA at any bank of choice.

Note: HSA contributions and earnings are free of federal income tax, but may be taxed by California or New Jersey. Dell does not monitor or manage in any way your use of the HSA. In addition, other HSA contributions such as, a previous employers contributions, are included in the IRS maximum. Like any bank account, your HSA is your responsibility, and you may want to consult a tax advisor on IRS rules.

Paying for expenses
You have a choice of payment options:

  • Use your HSA debit card that deducts money directly from your account.
  • Set up direct online payments to providers.
  • Transfer money from your HSA to your checking account to reimburse yourself.

More details

See the Summary Plan Descriptions on Your Benefits Resources website (@ Work  | Log in ). From Your Benefits Resources home page, go to the Knowledge Center.

Remember: If you have questions about your benefits, contact the Dell Benefits Center at 1-888-335-5663, option 1, option 1.

When you have both an HSA and Health Care FSA

If you’re enrolled in the Health Fund medical plan and the Health Savings Account (HSA), you can also have the Health Care Flexible Spending Account (FSA). However, due to IRS rules, when you are enrolled in the Health Fund, you can only use your FSA for certain services like dental, orthodontic care and vision care, until your eligible Health Fund medical and prescription expenses reach $1,300 (or $2,600 for family coverage), once you notify WageWorks. Then you can begin using your FSA for all eligible medical expenses, including prescriptions, coinsurance and doctor fees.

Note: You are responsible for submitting proof to WageWorks that you have reached these limits — the transition to using your FSA for eligible medical expenses is not automatic.

Health Care FSA

You benefit from the Health Care FSA because it reduces your annual taxable income since your contributions are deducted before taxes are withheld. You use the money you set aside to pay for eligible health care expenses for you and your dependents that are not covered or are only partially covered under your medical, dental and vision plans. (Note: Under the Health Care FSA, your domestic partner and his or her children do not qualify as dependents unless they otherwise qualify as tax dependents as defined by the Internal Revenue Service.)

  • You choose how much you want to contribute to your FSA each calendar year, between $120 and $2,550. Your contribution is deducted from your pay before taxes are withheld. This reduces the amount of your taxable income for the year
  • When you file a claim for eligible expenses, the plan reimburses you according to the plan and IRS rules. You don’t pay taxes on these reimbursements.
  • Each plan year, you can incur eligible expenses until December 31, and you have until April 30 of the following plan year to submit claims for reimbursement.
  • If you contribute more to the Health Care FSA than you can claim, you’ll be able to carry over up to $500 to the next year. Visit the WageWorks website for more information.
  • You can change your contribution amount during the year only if you have a qualified status change.
  • FSAs are subject to IRS rules. If you activate and use the FSA debit card, be sure to save all your receipts. You may be asked to provide copies to confirm your expenses.

Are you enrolled in the Health Fund? The IRS has rules that govern how you can use the Health Care FSA if you’re enrolled in the Health Fund medical plan and the Health Savings Account (HSA). Learn more.

Eligible expenses

 
Examples of eligible expensesExamples of ineligible expenses
  • Medical, prescription drug, dental and vision expenses
  • Noncovered orthodontic expenses
  • Physician-prescribed over-the-counter drugs and medicines
  • Over-the-counter insulin, medical devices (crutches, blood sugar monitors, etc.), bandages, contact lens solution
  • Prescribed birth control pills
  • Nonreconstructive cosmetic surgery
  • Hair treatments and medication to prevent hair loss
  • Health care treatments offered by resorts, health clubs or gyms
  • Over-the-counter vitamins, cold medicine, aspirin, etc., unless prescribed by a physician
 

For a complete list of eligible expenses, visit the WageWorks website.

If you contribute more than you can claim, you’ll be able to carry over up to $500 to the next year. If you have more than $500 in your Health Care FSA as of December 31, 2017, the remaining amount will be forfeited. Visit the WageWorks website for more information.

Accessing your Health Care FSA

Shortly after you enroll in the Health Care FSA, you’ll receive information from WageWorks about the plan and multiple ways to access your account:

  • Automatic reimbursement. If you are enrolled in an Aetna or UnitedHealthcare health plan, in MetLife’s dental plan or the vision plan, you will be defaulted to “auto reimbursement,” meaning that eligible health care expenses, like in-network doctor’s office visits and prescription drug copays, will automatically be reimbursed to you from your Health Care FSA without your having to submit a claim and supporting documentation.
  • WageWorks Health Care Card.This is a special Visa debit card you receive from WageWorks after you enroll in the Health Care FSA. You can use it to pay for eligible health care expenses (except to purchase prescribed over-the-counter drugs and medicines). Keep your receipts! If your provider or pharmacy does not have an IRS-approved inventory system, you may be required to submit a receipt or an Explanation of Benefits (EOB) statement. Note: The debit card can only be used to pay eligible expenses through December 31 of the current plan year. If you’re paying for an expense from the prior plan year, before the April 30 deadline, you should use the “Pay Me Back” feature on the WageWorks website.
  • Important: If you want to continue auto reimbursement, do not use the WageWorks debit card. Once you use the debit card, auto reimbursement will be discontinued for the rest of the plan year and cannot be restored unless you contact WageWorks and reactivate automatic reimbursement. Keep in mind that some health care providers and merchants may not accept the debit card. You will need to manually file claims with WageWorks for these expenses.
  • “Pay My Provider” online payment. Do you have a recurring eligible expense or did you forget your debit card? You can pay many eligible health care expenses (minimum $20) directly from your Health Care FSA without filling out forms. It’s a quick, easy, and secure process from the WageWorks website.
  • File an online or paper claim. You can also file a claim online to request reimbursement for your eligible expenses from the WageWorks website.
  • Use the convenient mobile app. EZ Receipts is a free app you can use to file claims from your smart phone or tablet. Just download the EZ Receipts to your device from the App Store, and follow the instructions to take a picture of your documentation to submit your claim.

By default, your account is set to reimburse you automatically for some expenses using the Automatic Health Plan Claim (AHPC) feature. You can use this feature as long as you do not activate your WageWorks Health Care Card. Once the card is activated, the AHPC feature will be deactivated.

For more information

Visit the WageWorks website for more information about the Health Care FSA. To talk to a trained expert at WageWorks Customer Service, call 1-877-WAGEWORKS (1-877-924-3967) on Monday through Friday between 8 a.m. and 8 p.m. Eastern time.

Dependent Care (Day Care) FSA

You benefit from the Dependent Care (Day Care) FSA because it reduces your annual taxable income since your contributions are deducted before taxes are withheld. You use the money you set aside to pay for certain dependent day care expenses if you (or you and your spouse) need these services so you can work, look for work or attend school. Keep in mind, you can only be reimbursed up to the amount in your Dependent Care (Day Care) FSA account at the time of your claim.

  • You choose how much you want to contribute to your FSA each calendar year, between $120 and $5,000 ($2,500 per year if you’re married and file separate tax returns).
  • Your contribution is deducted from your pay before taxes are withheld. This reduces the amount of your taxable income for the year.
  • When you file a claim for eligible expenses, the plan reimburses you according to the plan and IRS rules. You don’t pay taxes on these reimbursements.
  • Each plan year you can incur eligible expenses until March 15 of the following plan year, and you have until April 30 of the following plan year to submit claims for reimbursement. There is no balance carryover for the Dependent Care (Day Care) FSA.
  • You can change your contribution amount during the year only if you have a qualified status change.
  • FSAs are subject to IRS rules. If you activate and use the FSA debit card, be sure to save all your receipts. You may be asked to provide copies to confirm your expenses.

For more information

Visit the WageWorks website for more information about the Dependent Care (Day Care) FSA. To talk to a trained expert at WageWorks Customer Service, call 1-877-WAGEWORKS (1-877-924-3967) on Monday through Friday between 8 a.m. and 8 p.m. Eastern time.

Eligible dependents

Expenses must be for an individual you can legally claim as a dependent on your income tax return:

  • A dependent child under the age of 13. If you are a divorced parent, you must be:
    • Able to claim an exemption for the child on your federal income tax return, or
    • The parent who has custody for the longest period during the year (even if you cannot claim a dependent exemption)
  • An individual who is physically or mentally incapable of caring for himself or herself and lives with you more than half of the year; for example, a spouse, dependent parent or grandparent
 
Eligible expenses include care provided:Examples of ineligible expenses:
  • In or out of your home
  • In an elder care center or a child care center that complies with all state and local regulations
  • By a housekeeper whose services include, in part, care of an eligible dependent
  • At a summer day camp
  • Expenses that are educational in nature; for example, educational expenses for a child in kindergarten and up
  • Expenses for overnight camp
  • Expenses for evening babysitting, unless the expense is incurred because both parents work in the evening
  • Transportation, entertainment and food, unless these costs cannot be separated from the cost of care provided
  • Household services

Accessing your Dependent Care FSA

  • “Pay My Provider” online payment. Pay many eligible dependent care expenses (minimum $20) directly from your FSAs without filling out forms. It’s a quick, easy, and secure process from the WageWorks website.
  • File an online or paper claim. You can also file a claim online to request reimbursement for your eligible expenses from the WageWorks website.
  • Use the convenient mobile app. EZ Receipts is a free app you can use to file claims from your smart phone or tablet. Just download the EZ Receipts to your device from the App Store, and follow the instructions to take a picture of your documentation to submit your claim.

For more information

For specifics on maximum contributions based on your situation, see the summary plan descriptions on Your Benefits Resources website (@ Work | Log in ). From Your Benefits Resources home page, go to the Knowledge Center.

Commuter benefits

Dell’s commuter benefits program allows you to set aside before-tax money through payroll deductions to pay for transit passes and parking costs associated with commuting to work. You save money because you don’t pay taxes on your contributions. You can enroll in this benefit at any time.

How it works

The commuter program is administered by WageWorks and is available anywhere in the U.S. and on any U.S. transit system. All it takes is a quick online order to get your transit pass delivered to your home every month and to set up direct parking payments.

You can set aside a maximum of $130 a month for transit expenses and/or $250 a month for parking expenses. Unlike other pretax benefit programs, commuter benefits do not require an annual election, so you can sign up, make changes or cancel at any time.

 
Examples of eligible expensesExamples of ineligible expenses
  • Bus, light rail, regional rail, streetcar, trolley, subway and ferry
  • Vanpool
  • Parking at or near work
  • Parking at or near public transportation for your commute
  • Bicycle expenses
  • Parking costs that are non-work-related
  • Mileage
  • Tolls, tollways
  • Taxis and limousines
  • Parking at an airport for air travel

For more information, or to enroll in the Dell commuter benefits program, please contact WageWorks at 1-877-924-3967, Monday through Friday between 8 a.m. and 8 p.m. Eastern time.

Bicycle Reimbursement Program

Dell’s Bicycle Reimbursement Program reimburses you up to $20 per month for eligible bicycle expenses — including purchase, improvement, maintenance and storage costs — if you bike to work. You can enroll in this benefit at any time.

How it works

The Bicycle Reimbursement Program is administered by WageWorks and is available anywhere in the U.S. It’s simple. Go to the WageWorks website to download, complete and submit a claim form with your receipt.

 
Examples of eligible expensesExamples of ineligible expenses
  • Improvements (such as handlebars, pedals, seats, tires)
  • Bicycle purchase
  • Maintenance/tune-up
  • Storage
  • Bicycle expenses incurred by your spouse or domestic partner
  • Clothing
  • Helmets
 

For more information, or to enroll in the Dell Bicycle Reimbursement Program, please go to the WageWorks website and choose the Bicycle Reimbursement Program option from the commuter page.

Important note: The Bicycle Reimbursement Program is exclusive of any other commuter benefit. You cannot receive any other commuter benefit (such as transit, vanpool or parking) for any month that you claim a bicycle reimbursement.