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Your Digital Benefits Guide

Savings & Spending Accounts

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Last updated date: 1/5/2026

Save money on eligible health care and/or dependent care expenses by paying for them with tax-advantaged accounts.

Overview

iCapital offers you a choice of tax-advantaged accounts and encourages you to take full advantage of their money-saving potential. You can enroll as a new hire, during Open Enrollment, or if you have a qualified life event.

Key features

Tax-free money

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

Convenient payroll deductions

Make pretax deductions from your paycheck to effortlessly add money to your account while lowering your taxable income, which results in significant savings for you.

Helpful budgeting tool

Plan for upcoming expenses by setting aside money each paycheck.

*Contributions are not subject to federal income tax, but may be subject to state income tax in certain states, depending on your account type. Consult with your tax advisor to understand your potential tax implications.

What’s eligible?

The IRS determines what expenses can be paid with money from a tax-advantaged account. Learn more about the eligible expenses for each account:

  • Health Savings Account (HSA) or Health Care Flexible Spending Account (FSA) – Eligible expenses include medical care, prescriptions, dental care, vision care, and many over-the-counter products. Learn more on the IRS website.
  • Dependent Care FSA – Eligible expenses include day care for children under age 13 as well as elder care so you (and your spouse if you're married) can work. Learn more on the IRS website.

How much could you save?

Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax, and $153 in payroll tax. So, by contributing that $2,000 to his HSA or FSA, he’ll save $733 in taxes for the year.

Without an HSA or FSA, Tom would pay … Savings
24% in federal income tax……………………………………………………….. $480
5% in state income tax*…………………………………………………………. $100
7.65% in payroll tax…………………………………………………………..……. $153
His total tax savings for the year with an HSA or FSA …………... $733

This hypothetical 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.

*HSA contributions are not subject to federal income tax, but are currently subject to state income tax in CA and NJ. Consult with your tax advisor to understand the potential tax implications of enrolling in an HSA and/or FSA.

Health Savings Account

When you enroll in the HDHP, you’re eligible to open and contribute money to a Health Savings Account (HSA) through Wex Health. This powerful combination of low-contribution, high-deductible medical coverage and a tax-free HSA helps you take control of your health care spending.

You own your HSA and can choose to spend the money right away as eligible health expenses come up or save it for the future — you can even use it in retirement.

Get a triple tax advantage!

You contribute to your HSA through pretax payroll deductions from each paycheck.

You can change, stop, or restart your contributions anytime.

1. Contribute money tax-free.*

Use the tax-free money in your HSA to pay for eligible medical, dental, and vision expenses for you and your family. You can make payments with your HSA debit card or through the Wex Health website (provided sufficient funds are in your account) or reimburse yourself later.

2. Spend money tax-free.*

All the money in your HSA is yours to keep. Anything you don’t spend rolls over each year. You can earn tax-free interest and even invest your money once it reaches a minimum balance, giving you the potential for tax-free growth and a way to plan ahead for future expenses.

3. Grow your money tax-free.

iCapital will contribute to your account — $500 if you have employee-only medical plan coverage or $1,000 if you cover dependents — tax-free! The company’s annual contribution is made over time, with a proportional amount deposited into your HSA every paycheck.

And, get company funding (tax-free)!

*HSA contributions are not subject to federal income tax, but are currently subject to state income tax in CA and NJ. 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.

2026 contribution limits

The maximum amount you and iCapital can contribute to your HSA is determined by annual IRS limits. In 2026, the total contribution limits are:

  • $4,400 if you have employee-only medical plan coverage, or
  • $8,750 if you cover dependents.

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

Keep in mind that the contribution amount you’re able to elect for the year will be reduced by the amount of iCapital’s annual contribution: $500 if you have employee-only medical plan coverage or $1,000 if you cover dependents.

Who’s eligible for an HSA?

In order to establish and contribute to an HSA, you:

  • Must be enrolled in the HDHP.
  • Cannot simultaneously participate in the Health Care FSA (but participation in a Limited Purpose FSA is allowed).
  • Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare.
  • Cannot be claimed as a dependent on someone else’s tax return.

You should review IRS rules for making HSA contributions if you will turn age 65 during the year. For more information, see IRS Publication 969.

Increase your tax savings with a Limited Purpose Health Care FSA.

If you want to maximize your tax savings, you can contribute pretax money to both an HSA and a Limited Purpose Health Care FSA. The funds in your Limited Purpose Health Care FSA can be used to pay for dental and vision expenses only.

Getting started

To contribute to an HSA, you must enroll in the HDHP. You will elect your HSA contribution amount during enrollment, but can change it anytime during the year. You can then manage your account through the Wex Health website.

As you start using your account, keep in mind you can only spend money actually deposited into your account — your entire annual contribution amount is not available to you from the beginning of the plan year. Your HSA balance will grow as deposits are made from each paycheck.

Flexible Spending Accounts

Using a Flexible Spending Account (FSA) is like getting a discount because you’re paying with tax-free money. There are separate FSAs for different purposes:

  • Health Care Flexible Spending Account (FSA) – Available to employees who are not eligible for an HSA. This account lets you pay for current health care expenses with tax-free money. You can contribute up to $3,400 for the year.
  • Limited Purpose Health Care Flexible Spending Account (FSA) – Available to employees who enroll in the HDHP. This account can be used in addition to an HSA, offering additional tax-saving opportunities on dental and vision expenses only. You can contribute up to $3,400 for the year.
  • Dependent Care Flexible Spending Account (FSA) – Available to all employees regardless of medical plan enrollment. This account lets you pay for childcare or dependent adult care with tax-free money. You can contribute up to $7,500 for the year.
Note: You must enroll in these accounts each Open Enrollment if you want to contribute the next year, even if you already have an account.

How the FSAs work

Choose your contribution amount when you enroll. You can only change it during the year if your personal situation changes, so estimate carefully.

Choose

Your annual contribution is divided into equal deductions from each paycheck. With Health Care FSAs, the entire annual amount is available to you from the beginning of the plan year. With the Dependent Care FSA, you can only access the amount of money you've actually contributed.

Contribute

Spend your money on eligible expenses. For health care expenses, use your FSA debit card, where accepted. Log in to the Wex Health website to submit payment requests or request reimbursement for payments you’ve made.

Spend

With Health Care FSAs, up to $680 of unused money may be carried over to the next year; amounts above $680 will be forfeited. There is no carry over allowed with a Dependent Care FSA. You have some extended time into the next year to submit your reimbursement requests for expenses made in the previous year. Log in to your Wex Health account to view deadlines and request reimbursement.

Use It Up