frequently asked questions

General

How do I enroll for benefits?

Enrolling in WRNS Studio benefits is easy as 1-2-3! When you are ready to enroll in the various benefit plans, login and complete the online forms.

Click Here to begin the enrollment process.

When will my benefits start?

If you are benefits-eligible and enroll as a new employee during the initial enrollment period, your coverage begins on the first of the month following your date of hire.

When can I make changes to my benefits?

The benefit choices you make upon initial enrollment or during the annual open enrollment period will remain in place until the next Open Enrollment or change in family status, also known as a qualifying event. These qualifying events include:

  • Marriage

  • Divorce or legal separation

  • Birth or adoption

  • Child reaches age limit

  • Change in spousal employment status

  • Death

Should one of these events apply to you, it is your responsibility to contact Human Resources within 30 days to ensure continued coverage for those who are eligible. You have 30 days from the date of the qualifying event to submit the corresponding changes to your benefits.

HSA

What is an HSA?

An “HSA”, or Health Savings Account, is like a 401(k) for healthcare. This pre-tax benefit account, paired with your qualified high-deductible health plan, is used to pay for eligible out-of-pocket medical, dental, and vision expenses. You can earn interest on the money in your account and invest it so that it grows over time. An HSA works like a Healthcare Flexible Spending Account (FSA), except that the money in your account is yours even if you leave your company or if you have money left over at the end of the plan year.

How do I qualify for an HSA?

To qualify and be eligible to make contributions into an HSA, you must meet all of the following conditions:

  • You must be covered by a qualified high-deductible health plan. Ask your employer for details on coverage under your company’s high-deductible health plan.

  • You cannot be enrolled in another type of pre-tax healthcare benefit account, such as a Healthcare Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA). This includes being enrolled in your spouse’s Healthcare FSA or HRA. You can, however, be enrolled in an HSA-Compatible FSA, which becomes a regular Healthcare FSA once you meet your deductible.

  • You cannot be claimed as a dependent on another person’s tax return.

  • You are not entitled to benefits under Medicare.

How do I fund my HSA?

There are two ways to fund your HSA:

  1. Pre-Tax through automatic payroll deductions. During Sentry’s Open Enrollment period, complete the HSA contribution form and turn it into HR. Your deductions will be deducted (in equal portions) from your paychecks, before taxes are deducted, throughout the plan year.

  2. Post-Tax through direct contributions. You can contribute additional funds to your HSA at any time, subject to the annual contribution maximum. While these contributions aren’t tax-free, they can be deducted on your tax return.

How much can I contribute to my HSA?

For 2020, the annual contribution limits are: $3,550 for an individual HDHP policy and $7,100 for a family HDHP policy. Exception: If you are age 55 or older as of December 31, 2020, you may contribute an extra $1,000 as a catch-up deduction under both individual and family policy coverage for 2020.

 

These limits are set by the IRS and may change year to year.

Is the total election amount available in my HSA on day one of the plan year, like a healthcare FSA?

Unlike a Healthcare FSA, the funds in your HSA must accumulate in your account before you can use them. You can easily monitor your balance on your HSA bank’s website and you should receive monthly statements as well.

How do I make additional contributions to my HSA?

There are two ways to make additional contributions to your HSA.

  1. Electronic deposit. The easiest and fastest way is to make an electronic deposit to your HSA.

  2. Check deposit. Ask your HR representative for an HSA Contribution Form, and mail the form along with a check to the HSA bank.

 

Alternatively, you may simply note the following information on your check and mail it to the bank:

  • The tax year of your contribution (between January 1 and April 15, you can make a current or prior year contribution)

  • Your account number

What is a catch-up contribution?

Eligible individuals who are age 55 or over as of December 31, 2020 are allowed to make additional “catch-up” contributions to their HSAs. The catch-up contribution is set by the IRS and the limit for 2020 is $1,000.

Can both spouses make a catch-up contribution?

Yes; however, the catch-up contribution cannot be combined and put into one HSA: each spouse must open an HSA and put the catch-up amount into his/her own respective HSA account.

Can I contribute to my HSA if I am age 65 and covered under an HDHP?

Yes, you can contribute to your HSA as long as you are an eligible individual and have not enrolled in Medicare Part A, B, or D. Once you enroll in Medicare you may no longer contribute to your HSA.

 

For example, if you enroll in Medicare on July 21, you are no longer eligible to contribute to an HSA as of July 1. Your maximum contribution for that year would be for 6 months of that year (you were eligible the first six months of the year.) Remember to also include ½ of the catch-up amount for that year.

 

If you turn age 65 and are still working and are not enrolled in Medicare, you are still eligible to contribute to your HSA, including the catch-up amount.

What if I enroll in an HSA and HDHP in the middle of the year?

If you enroll in a qualified HDHP midyear,* you may still make the maximum annual contribution into your HSA. However, you must remain enrolled in the plan until the end of the following calendar year in order to avoid potential tax issues.

* You need to enroll in a qualified HDHP prior to December 1.

– See more at: https://www.irs.gov

What is the deadline to make my HSA contributions?

You may contribute to your HSA until your tax filing due date (for most people, that date is April 15 of the year following the tax year).

What kinds of expenses are covered by an HSA?

You’d be surprised by how many different kinds of expenses are covered under an HSA.

In general, you can use your HSA to pay for any qualified medical expense. Qualified medical expenses are defined by the IRS and include medical care, dental and vision care expenses, prescription drugs, and payments for long term care services and insurance.

An HSA may reimburse certain types of insurance premiums, such as COBRA continuation, or any health insurance plan maintained while receiving unemployment compensation under federal or state law for the HSA holder or for his/her spouse or dependents. If you have an HSA and are age 65 or older (whether or not you’re entitled to Medicare), you may use your HSA to pay for any deductible health insurance, such as retiree medical coverage other than a Medicare supplemental policy.

– See more at: https://www.irs.gov

Can I use my HSA to pay for health insurance premiums?

Generally, you cannot treat insurance premiums as qualified medical expenses unless the premiums are for:

  1. Long-term care insurance, subject to IRS mandated limits based on age and adjusted annually.

  2. Healthcare continuation coverage (such as coverage under COBRA).

  3. Healthcare coverage while receiving unemployment compensation under federal or state law.

  4. Medicare and other healthcare coverage if you are 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).

 

For (b) and (c) above, your HSA can be used for your spouse or a dependent meeting the requirement for that type of coverage. For (d) above, if you, the account beneficiary, are not 65 years of age or older, Medicare premiums for coverage of your spouse or a dependent (who is 65 or older) generally are not considered a qualified medical expenses.

– See more at: https://www.irs.gov

Can I withdraw the funds from my HSA at any time?

Yes, you can withdraw funds from your HSA at any time. But please keep in mind that if you use your HSA funds for any reason other than to pay for a qualified medical expense, those funds will be taxed as ordinary income, and the IRS will impose a 20% penalty.

After you reach age 65 or if you become disabled, you can withdraw HSA funds without penalty but the amounts withdrawn will be taxable as ordinary income.

What sort of investment options do I have with my HSA?

You will need to check with Namely and Discovery Benefits to see if you may invest your HSA funds in bank accounts, money market accounts, mutual funds, and stocks. You may not invest in collectibles, art, automobiles or real estate.

 

It is recommended to keep a small balance in your HSA account to pay for current eligible expenses.

Can I use my HSA funds for my family members, although I only have insurance coverage for myself?

Yes, you can use your HSA to pay the qualified medical expenses for your spouse and dependents, as long as their expenses are not otherwise reimbursed.

– See more at: https://www.irs.gov

Are Medicare Part D premiums considered qualified medical expenses?

Yes. If an account beneficiary has reached age 65, premiums for Medicare Part D for the account beneficiary, the account beneficiary’s spouse, or the account beneficiary’s dependents are considered qualified medical expenses.

– See more at: https://www.irs.gov

Is there a limit to the amount I can spend with my HSA?

No, there is no minimum spending limit for your HSA, and the entire balance can be carried over from year to year.

Is there a limit to how much I can carry over from one plan year to the next?

No, there is no limit for how much you can carry over from year to year in your HSA.

Can I transfer assets in my IRA into an HSA?

Yes, the law allows a one-time transfer of IRA assets to fund an HSA.

The amount transferred may not exceed the amount of one year’s contribution and individuals must be otherwise eligible to open an HSA. Transfers are not taxable as IRA distributions; however, amounts transferred into an HSA from an IRA are not deductible. IRS Publication 969 provides more information.

– See more at: https://www.irs.gov

How do I withdraw my HSA funds at or after age 65?

At or after age 65, you can withdraw your HSA funds for non-qualified expenses at any time, although they are subject to regular income tax. You can avoid paying taxes by continuing to use the funds for qualified medical expenses.

If you are age 65 or older, premiums for Medicare Part A, B, C or D, Medicare HMO, and employee premiums for employer-sponsored health insurance can be paid from an HSA.

– See more at: https://www.irs.gov

How do I set up my HSA?

During Open Enrollment, select your qualified high-deductible health plan and with it, your HSA, either for yourself (individual) or your family.  Once the plan year starts, you can access your HSA.

You can establish an HSA with the bank your employer utilizes for these accounts.  See your HR representative for more information.  Funds remain tax-free, assuming distributions are only taken for eligible healthcare expenses.

How does an HSA work?

It’s easy. Simply decide how much you want to contribute to your HSA each year and funds are automatically withdrawn from your paycheck for deposit into your account before taxes are deducted. This means you pay less in taxes and take home more of your pay.

 

HSA contributions are deposited in an FDIC-insured, interest-bearing account from which you can draw from at any time. You can choose how much you would like to invest and how much you would like to keep available for your eligible medical expenses. Any funds you put into your HSA and don’t use during the plan year stays with you, even if you change employers or retire. And it’s there for you today, tomorrow, or anytime in the future.

Do I have to make a certain amount of money each year to be eligible to enroll in an HSA?

No. It doesn’t matter how much money you earn. Anyone who is covered by a qualified high-deductible health plan is eligible to enroll in an HSA.

My spouse has a traditional health insurance policy through his/her employer. Am I eligible to participate in an HSA?

If your spouse has a traditional health insurance plan, such as a PPO or HMO, that provides individual coverage only, then yes, you are eligible to participate in an HSA, but only if you are enrolled a high-deductible health plan and your spouse doesn’t also have a Healthcare FSA or HRA that covers your healthcare care expenses.

If your spouse has a traditional health insurance plan that provides family coverage, and you have not exempted from that coverage, then no, you are not eligible to participate in an HSA. However, if your spouse has a traditional health insurance plan that covers him/her and your children only, then you are eligible to participate in an HSA.

– See more at: https://www.irs.gov

What happens to my HSA if I leave my job?

This is one of the best things about an HSA: it’s yours! Your HSA is yours and yours alone. It is yours to keep, even if you resign, are terminated, retire from, or change your job. You keep your HSA and all the money in it, but keep in mind that there may be nominal bank fees if you are no longer enrolled in your HSA through your employer.

You can even use your HSA to pay for long-term care insurance, COBRA premiums, or other health insurance premiums if you’re receiving unemployment benefits.

Who can contribute to my HSA?

Almost anyone can contribute to your HSA—you, your spouse, your employer, your family members. For example, if you enrolled in an HSA through your employer, both you, as the employee, and your employer may make contributions. Additionally, your spouse may contribute to your HSA on behalf of other family members (e.g., your children) as long as the other family members are covered under the high-deductible health plan and are not otherwise insured.

What happens if I contribute to my HSA more than the maximum annual limit that the IRS allows?

HSA contributions in excess of the IRS annual contribution limits ($3,550 for individual coverage and $7,100 for family coverage for 2020) are not tax deductible and are generally subject to a 6% excise tax.

If you’ve contributed too much to your HSA this year, you can do one of two things:

  1. Remove the excess contributions and the net income attributable to the excess contribution before you file your federal income tax return (including extensions). You’ll pay income taxes on the excess removed from your HSA.

  2. Leave the excess contributions in your HSA and pay 6% excise tax on excess contributions. Next year you may want to consider contributing less than the annual limit to you HSA to make up for the excess contribution during the previous year.

– See more at: https://www.irs.gov

Healthcare FSA

What is a Healthcare FSA?

A Healthcare Flexible Spending Account, or “FSA,” is a pre-tax benefit account that you can use to pay for eligible medical, dental, and vision care expenses that aren’t covered by your health insurance plan. You decide how much to contribute to your Healthcare FSA each year, and funds are withdrawn automatically from each paycheck for deposit into your account before taxes are deducted. The total amount you elect to contribute to your Healthcare FSA each year is available on the first day of your plan year.

What if I don't use all the funds in my Healthcare FSA?

The FSA plan has a carryover, allowing enrollees roll over up to $500 of unused amounts in the Health Flexible Spending Account remaining at the end of one Plan Year to the immediately following Plan Year.  All claims incurred during the plan year must be submitted within 60 days from the end of the plan year.  Eligible expenses submitted (online, fax, debit card, etc.) to Navia will be reimbursed promptly.  Funds greater than $500 (carryover limit) past 60 days following the plan year are forfeited.

What happens to the funds in my Healthcare FSA if I terminate employment during the plan year?

Only claims incurred prior to your termination date are eligible for reimbursement and you will have 60 days following your termination to submit receipts for reimbursement.  If you have contributed more to your healthcare FSA than you have spent, then you are eligible to continue the plan via COBRA.  If you have spent more than you have contributed via payroll deductions, then you cannot continue the plan via COBRA.

Dependent Care FSA

 

What is a Dependent Care FSA?

A Dependent Care Flexible Spending Account, or “FSA,” is a pre-tax benefit account used to pay for dependent care services while you are at work. The money you contribute to a Dependent Care FSA is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck. Under this type of account, a “dependent “ is a child under 13 years of age (until the day of their 13th birthday) and adult dependents who can’t take care of themselves. Please keep in mind that dependents must live with you and be claimed as dependents on your tax return. Please review the eligible expense list to see what’s covered under your Dependent Care FSA.

What if I don't use all the funds in my Dependent Care FSA?

The FSA plan has a grace period, allowing enrollees to incur claims for the prior plan year until March 15th following the end of the plan year.  All claims incurred during the plan year or grace period must be submitted within 90 days from the end of the plan year.  Eligible expenses submitted to Paychex FSA will be reimbursed promptly.  All excess funds after the runout period are forfeited.

What happens to the funds in my Dependent Care FSA if I terminate employment during the plan year?

Only claims incurred prior to your termination date are eligible for reimbursement and you will have 90 days following your termination to submit receipts for reimbursement.  If you have contributed more to your dependent care FSA than you have spent, then you are eligible to continue the plan via COBRA. 

HSA-Compatible FSA

 

What is an HSA-Compatible FSA?

An HSA-Compatible FSA is a Flexible Spending Account (FSA) that is compatible with a Health Savings Account (HSA). If you’re enrolled in a qualified high-deductible health plan and have an HSA, you can maximize your savings by pairing your HSA with an HSA-Compatible Flexible Spending Account (FSA). This pre-tax benefit account lets you take advantage of the savings power of an HSA and a Healthcare FSA simultaneously. An HSA-Compatible FSA is sometimes referred to as a “limited purpose” FSA because it is used to pay for eligible dental and vision care expenses only.

What kinds of expenses are covered by an HSA-Compatible FSA?

Many kinds! Your HSA-Compatible FSA expands on the savings power of your HSA by covering eligible dental and vision care expenses, such as co-payments for dentist visits and new eyeglasses or contact lenses. Here's a handy list of eligible expenses to review, download, or print out for future reference. Please keep in mind that IRS rules determine which expenses are eligible, and that some expenses require a doctor's note or prescription to be eligible for reimbursement under your HSA-Compatible FSA. 

 

How is an HSA-Compatible FSA funded?

You fund your HSA-Compatible FSA through your employer. During your company's Open Enrollment period, you tell your employer how much you would like to contribute to your account for the coming year. The maximum amount you can contribute is determined by the IRS. For 2020, it is $2,750. Your employer then deducts your contribution amount (in equal portions) from your paychecks throughout the plan year.

Good news! You don't have to wait for funds to build up in your HSA-Compatible FSA. Your entire annual election amount is available to you on the first day of your plan year.

Commuter Benefits (Parking & Transit)

 

Parking & Transit

If you are commuting to work using public transportation and/or paying for parking as a part of your daily commute, this program will help defray your costs. This benefit allows parking and transit expenses to be deducted from your paycheck. Your monthly deductions up to $270 for parking and/or $270 for transit will be deducted pre-tax.

What if I don't use all the funds for the month in my commuter benefit?

Any unused funds for the month will carry over to the following months.  

What happens to the funds in my commuter benefit if I terminate employment during the plan year?

Your Commuter Debit Card will be deactivated upon your termination date. The excess funds after deactivation are forfeited.

 

What is not an eligible commuting expense?

  • Tolls

  • Taxis

  • Gas/fuel

  • Mileage

  • Business trip costs

  • Airport parking fees

  • Parking fees at your home

 
 
 
 
 
 

Questions?

Contact our benefits consultant, Sabrina Louie:

premierbenefits@newfront.com

415-878-3711