WEALTH

CareFirst/BlueFund | CareFirst.com | 866-758-6119

An HSA is a personal healthcare bank account that can be used to pay out-of-pocket medical expenses with pretax dollars. If enrolled in the high-deductible health plan, you can open an HSA. You determine how much to contribute to your account, when to use your money to pay for qualified medical expenses, and when to reimburse yourself. Remember, this is a bank account; you must have money in the account before you can spend it.

The HSA is administered by BlueFund (in partnership with CareFirst), and Gates Hudson pays the monthly administrative fee. If your coverage status or employment status changes, you will be responsible for all HSA account holder fees.

HSAs offer the following advantages:

• Tax Savings: You may contribute pretax dollars to the HSA. Interest accumulates tax-free, and funds are withdrawn tax-free to pay for medical expenses.
• Reduced Out-Of-Pocket Costs: Use the money in your HSA to pay for eligible medical, dental and vision expenses and prescriptions on a pretax basis, or use your HSA funds to help you meet your annual deductible.
• A Long Term Investment That Stays With You: Unused account dollars are yours to keep even if you retire or leave the company. Also, you can invest your HSA funds so your available healthcare dollars can grow over time. Interest and earnings on the HSA funds accumulate tax-free.

Gates Hudson will contribute the following amounts to your HSA (prorated per pay period):

*Those age 55+ and not enrolled in Medicare can contribute an additional $1,000 “catch-up” contribution.

HSA eligibility

Open and fund an HSA if:

• You are not enrolled in any other non-HSA qualified health insurance plan.
• You are not covered by your spouse’s health plan (unless it is a qualified HDHP), flexible spending account (FSA) or health reimbursement arrangement (HRA).
• You are not eligible to be claimed as a dependent on someone else’s tax return.
• You are not enrolled in Medicare, TRICARE or TRICARE For Life.
• Care received through the VA in the preceding three calendar months was dental, vision or preventive care or was provided to a veteran who has a disability rating from the VA.

Spending Your Money

HSA distributions are tax-free if they are used to pay for qualified medical expenses.

• Qualified medical, dental and vision expenses not covered by insurance
• Qualified long-term care services and long-term care insurance
• Continuation of coverage required by federal law (i.e., COBRA)
• Health insurance for the unemployed
• Medicare expenses (but not Medigap)
• Retiree health expenses for individuals aged 65 or older

Distributions made for any other purpose are subject to income tax and a 20% penalty. The 20% penalty is waived in the case of death or disability. The 20% penalty is also waived for distributions made by individuals aged 65 or older.

Flores & Associates | Flores247.com | 800-532-3327

Our Dependent Care FSA plan allows you to use pre-tax payroll dollars to pay for or reimburse yourself for eligible dependent care expenses. Qualifying expenses include work-related child daycare fees, before-school and after-school programs, local day camp, and elder daycare. If you are married, your spouse must either be employed or a full-time student in order to use a dependent care flexible spending account.

The maximum annual contribution is $5,000. Under IRS guidelines, you can only be reimbursed for dependent care that has already taken place. Also, you can only be reimbursed for the amount you have already contributed to your dependent care FSA. Gates Hudson’s Dependent care benefit plan is administered by Flores & Associates.

Who is a “qualifying dependent” under the dependent care account? A qualifying dependent is:

• A child under age 13 who can be claimed as your dependent on your federal income tax return.
• Your spouse, if he or she is physically or mentally incapable of caring for himself or herself and has the same principal residence as you for more than one-half of the year.
• Any other person whom you can claim as a dependent on your federal income tax return (without regard to the gross income limitation) if he or she is physically or mentally incapable of caring for himself or herself and has the same principal residence as you for more than one-half of the year.

The “Use-It or Lose it” Guidelines:

Dependent Care FSA contributions are a use-it or lose-it benefit, which means that any unused contributions are forfeited at the end of the plan year. Please plan your annual contributions accordingly, as you will not be able to change the contribution amount you elect during open enrollment.

Commuter/Transit FSA Benefit

This allows participating employees to pay for qualified work-related commuting and parking expenses on a pre-tax basis. Gates Hudson’s Commuter Benefits program is administered by Flores & Associates. You will receive a debit card for your convenience at no cost to you.

Eligible Expenses

• Commuter Parking expenses incurred by an employee to park their car on or near their work or a location from which the employee commutes to work.
• Commuter Transit expenses incurred by an employee for any pass, token, fare card, voucher or similar item for mass transit to work.
• Commuter Vanpooling includes travel from an employee’s home and work in a vehicle that has seating capacity for at least 6 adults and at least 80% of the mileage use is for the purpose of transporting employees to and from work,

Program Requirements

• Eligible commuter expenses must be work-related
• Eligible parking expenses must include parking at or near your place of employment or at a location from which you commute to work
• The commuter benefit cannot be used for tolls, gas, or other auto related expenses.

How Much Can You Contribute Monthly?

The commuter/transit benefit does provide you the flexibility to change your contribution amount throughout the plan year, as long as you are already enrolled in the benefit plan. Monies already contributed to the account cannot be refunded back to the employee.

FSA Administration – Flores & Associates

Your FSA account(s) is administered by Flores & Associates. You can update your account information, check balances, manage recent transactions, submit for reimbursements, as well as view educational resources on the Flores website or on their mobile application. Please contact the Flores team to answer any additional questions about your account.

Principal | Principal.com | 800-547-7754

When electing your benefits, you’ll primarily be concerned about the health benefits you need for the coming year. But, it’s also important to think about your financial future, which is an integral aspect of your future. Through our 401k, you have access to valuable savings opportunities.

Saving for retirement and future expenses while you are working is one of the most important decisions you can make. The earlier you start saving, the better off you will be when you need to begin drawing on these savings. Through Principal, you can work towards reaching your savings goals.

Principal offers a deferred compensation plan that helps you save for your future through contributions you make via voluntary 401(k) contributions and through matching company contributions— a quarter of every dollar up to 12% of your eligible compensation. And, you can choose whether to make your contributions on a pre-tax or Roth (after-tax) basis. For more information about the retirement plan, visit www.principal.com. Remember, before making any investment decisions, you may want to consult your tax or financial advisor.

Evaluate your financial fitness by completing your Retirement Wellness Planner by logging on to www.principal.com or by calling 800-547-7754 M-F 8am–10pm EST to establish a plan for your financial future. If you enroll in the HSA medical plan, you can link your account to Principal and improve your Retirement Wellness Score!

Working Advantage | WorkingAdvantage.com | 877.851.1631

Your work-life balance and general well-being are as important to us as the work you contribute. That’s why we’re excited to offer your Working Advantage Discount Program, your one-stop shop for exclusive and convenient savings on the products, services, and experiences you know and love.

It’s cost-free and easy to enroll. Just visit Working Advantage and use the company code gateshudson to begin receiving discounts on: