Savings and spending accounts
Health care is expensive. A health savings account (HSA), health care flexible spending account (FSA), or limited purpose flexible spending account are tax-free accounts to help you cover health care expenses.
Health savings account (HSA)
Choosing the HDHP (PPO Saver plan) with a HSA? You can open and contribute pretax dollars to an HSA through HealthEquity. Use the money in your account to pay for qualified health care medical, dental, and vision expenses now—or save the money for future expenses.
How the HSA is funded
- You: contribute up to $3,850 individual or $7,750 family in 2023 (this includes the amount that Klaviyo contributes to your HSA)
- Klaviyo: contributes $1,000 individual or $2,000 family each year, prorated by pay period (not lump sum); contributions will begin on day 1 of the month following enrollment
Your account must be activated to contribute to your HSA. You can also enroll in a limited purpose FSA, to pay for eligible dental and vision expenses, but not a health care FSA, per IRS regulation.
How the HSA works
- Decide how much to contribute to your account and when to spend or save your HSA dollars
- Choose to invest a portion of your HSA once your balance is greater than $1,000
- This is not a use-it-or-lose-it account. The money in your account rolls over year to year and grows with interest; you can even save the funds in your HSA for retirement. Because an HSA is an actual bank account, the balance is always your money; you can take the account with you if you leave employment or are no longer eligible to contribute.
Flexible spending accounts (FSAs)
You may be eligible to participate in a health care or limited purpose flexible spending account through HealthEquity to pay for qualified health care expenses.
Health care FSA
- You can contribute pretax dollars through payroll deductions
- You can use the money to pay for qualified health care expenses
- The full election amount is available on January 1, 2023, and then deducted evenly per pay period throughout the rest of the year
- You can contribute up to $3,050 a year
- This is a use-it-or-lose-it plan—carefully estimate your 2023 expenses
- You can roll over up to $570 of unused money from this year into 2023. For next year, there will be an increased rollover amount of $610 that can be rolled into 2024—everything else is forfeited if it’s not spent.
- This plan is not available if you’re enrolled in a high-deductible health plan (HDHP)
Limited purpose FSA
- You can contribute pretax dollars through payroll deductions
- You can use the money to pay for qualified dental and vision expenses only
- You can contribute up to $3,050 a year
- This is a use-it-or-lose-it plan—carefully estimate your 2023 expenses
- You can roll over up to $570 of unused money from this year into 2023. For next year, there will be an increased rollover amount of $610 that can be rolled into 2024—everything else is forfeited if it’s not spent.
- This plan is only available to those enrolled in a high-deductible health plan (HDHP)
Need help paying for dependent care expenses?
Check out the dependent care FSA.
