Overview

You can save money on health care and dependent care expenses by paying for them with tax-advantaged accounts. Using these accounts effectively will help you take full advantage of their money-saving potential. Learn more about each of these accounts below or visit HealthEquity's website.

Tax-advantaged accounts:

Key features at a glance:

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Tax-free money

Money goes in tax-free and comes out tax-free when it’s used for eligible expenses.

Convenient payroll deductions

Change your contribution amount anytime throughout the year in Workday.

Helpful budgeting tool

Plan for upcoming expenses by setting aside money each paycheck.

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Compare the accounts

HSA vs FSAs

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Access your account
How much could you save?

View this example to see how much contributing to an HSA or FSA could save you.

Tax-advantaged accounts make a difference!

See how much contributing to an HSA or FSA could save you over the course of a year.

Tax savings on $2,000 contribution to HSA or FSA
28% in federal income tax$560
7.65% in Federal Insurance Contributions Act (FICA) tax$153
Total tax savings for year with an HSA or FSA$813

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.

 

Compare Health Accounts

HSA Limited Purpose FSA Health Care FSA Dependent Care FSA
Available with …
  • Anthem HSA
  • Anthem HSA II
  • Kaiser HSA
  • Kaiser HSA II
  • Anthem HSA*
  • Anthem HSA II*
  • Kaiser HSA*
  • Kaiser HSA II*

*With a Health Savings Account election

Any medical plan (if you waive a Health Savings Account). Also available if you waive medical coverage. Additionally, pairs with the HMSA plan (Hawaii employees only) Any medical plan (Also available if you waive medical coverage)
Receive company contribution
Yes
Individual: $800*
Family: $1,800*
No No No
Change your contribution amount anytime
Yes No No No
Access your entire annual contribution amount as needed
No Yes Yes No
Access only funds that have been deposited
YesNoNoYes
Use account money for…
All eligible health care expenses Only dental and vision expenses All 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 (Carry over up to $550) Yes (Carry over up to $550) No
Money is always yours to keep
Yes No No No
*Company Contribution is prorated based on the date you enroll in the plan.
 

Health Savings Account (HSA)

Employees in the Anthem or Kaiser plans can open and contribute money to a Health Savings Account (HSA) through HealthEquity. The HSA is a tax-free savings account that you can use to pay for eligible health expenses anytime, even in retirement.

Learn more about HSAs through HealthEquity.

 

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Put money in tax-free.

Contribute to your HSA through pre-tax payroll deductions.

Change your contribution amount anytime throughout the year in Workday.

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Get company contributions.

Anthem and Kaiser HSA and HSA II members:

Individual:  $800

Family:  $1,800

Note: company Contribution is prorated based on the date you enroll in the plan.

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Carry unused money over.

All the money in your HSA is yours to keep, year after year. You can build up savings to pay for future health care expenses. You can even invest your money once it reaches a minimum balance of $1,000, which gives you the potential for tax-free earnings growth and a way to plan ahead for your medical costs in retirement.

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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 at HealthEquity.

Keep in mind: 2022 contribution limits

The total amount you and Western Digital can contribute to your HSA this year is:

  • $3,650 for Individual medical coverage;
  • $7,300 for Employee plus one or more medical coverage.

Add $1,000 to these limits if you're age 55 or older.

HSA at a glance

Increase your tax savings with a Limited Purpose FSA. Use your HSA together with the Limited Purpose FSA (see Flexible Spending Accounts (FSA) for information) for additional tax savings. Note that with the Limited Purpose FSA, only dental and vision expenses are allowed.

Triple tax advantage

The HSA has a triple tax advantage that trumps even a 401(k) or Roth IRA. Money goes in tax free for federal taxes (state income taxes may apply in some states), builds earnings tax free, and comes out tax free when used on eligible expenses.*

*Money in an HSA can be withdrawn tax free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.

Getting Started

To open an HSA, you must be enrolled in the Anthem or Kaiser plans. If you’re enrolled and haven’t opened an HSA yet, visit Workday to elect a Health Savings Account. If you’re not enrolled in the Anthem or Kaiser plans, you may enroll during the next Open Enrollment period.

Health Savings Account Eligibility

  • Enrolled in a high deductible health plan (any of the Anthem or Kaiser HSA plans that Western Digital offers will work)
  • Not enrolled in Medicaid or Medicare (including receiving Social Security Retirement benefits)
  • Not enrolled in another medical plan that is not a high deductible health plan
  • You or a spouse are not currently contributing to a Healthcare Flexible Spending Account (FSA)
  • You won't be claimed as a tax dependent on someone else's tax return
Think long term!

A married couple is expected to spend $350,000 on health care costs during retirement, even with Medicare coverage. If you contributed the annual maximum to your HSA for 30 years, your account could grow to $313,000. And don’t forget, Western Digital’s contributions help you reach the annual limit faster!

Source: EBRI.org. Estimate of future account value assumes a 5% rate of return and no withdrawals.

Invest your HSA balance!

Did you know that when your HSA balance reaches $1,000 you can invest your funds? It is easy to do and your account can grow even more year over year. To learn more, go to HealthEquity.

 

Flexible Spending Accounts (FSAs)

Using an FSA is like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money. FSAs can only be elected during Open Enrollment or if you experience an IRS Qualifying Status Change. 

There are separate FSAs for health care and dependent care.

Extended Claim Deadline: You must file claims within 90 days of the end of the benefit plan year.

Use your money!

With FSA money, you use it or lose it. If you have a balance left in your FSA as year-end approaches, try to spend as much of it as you can on eligible expenses. Request reimbursement or manage your account on the HealthEquity website.

Health Care FSA

Available if you waive a Health Savings Account for any reason (i.e. not enrolling in a high deductible health plan, are currently enrolled in Medicare/Medicaid (including Social Security Retirement benefits), have other medical coverage that is not a high deductible health plan, or will be claimed as a tax dependent on someone else's tax return). Also pairs with the HMSA plan.

  • Contribute up to $2,850 per plan year to help cover eligible medical, dental, and vision expenses.
  • Select your annual contribution amount during Open Enrollment or as a new hire. You can only change your contribution amount during the year if you experience an IRS Qualified Status Change.
  • Spend your money by using your FSA debit card or request reimbursement for payments you’ve made.
  • Your entire annual contribution amount is available to you from the beginning of the plan year.
  • Up to $550 of unused money may be carried over to the next benefit plan year; amounts above $550 will be forfeited.

Limited Purpose FSA

Works together with the Health Savings Account (HSA) to give you additional tax-saving opportunities.

  • Contribute up to $2,850 per plan year.
  • This account can be used to cover eligible dental and vision expenses only.
  • Select your annual contribution amount during Open Enrollment or as a new hire. You can only change your contribution amount during the year if you experience an IRS Qualified Status Change.
  • Spend your money by using your FSA debit card or request reimbursement for payments you’ve made.
  • Your entire annual contribution amount is available to you from the beginning of the plan year.
  • Up to $550 of unused money may be carried over to the next benefit plan year; amounts above $550 will be forfeited. 

Dependent Care FSA

Pairs with any (or no) medical plan.

  • Contribute up to $5,000 in calendar year 2022 to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders. This includes preschool, summer day camp, before or after school programs and child and elder day care.
  • Use the HealthEquity website to reimburse yourself for payments you’ve made.
  • Select your annual contribution amount during Open Enrollment or as a new hire. You can only change your contribution amount during the year if you experience an IRS Qualified Status Change.
  • Unused money does not carry over at the end of each year — use it or lose it.