Saving and Spending Accounts

VMware offers a variety of tax-advantaged saving and spending accounts:

    • A Health Savings Account (HSA) gives you the ability to save and pay for out-of-pocket medical expenses on a pre-tax basis. It also comes with VMware contributions.
    • Flexible Spending Accounts (FSAs) help you pay for eligible medical, dental, vision, prescription drug, day and elder care expenses on a pre-tax basis:
      • Limited Purpose Flexible Spending Account (LPFSA) – Covers eligible dental and/or vision expenses. If you enroll in the HSA PPO, you can participate in the LPFSA in addition to the HSA.
      • General Purpose Flexible Spending Account (GPFSA) – Covers eligible health expenses not reimbursed by any medical, dental and/or vision plan. If you enroll in the Traditional PPO, Kaiser HMO N. CA, Kaiser HMO HI or the HSA PPO without the HSA, you can participate in the GPFSA.
      • Dependent Care Flexible Spending Account (DCFSA) – The DCFSA allows you to set aside pre-tax dollars to pay for eligible expenses from both licensed day and elder care providers.

HSA vs. Health FSA Plan Comparison

HSA Limited Purpose FSA General Purpose FSA
Eligibility Available only if you enroll in the HSA PPO. Available only if you enroll in the HSA PPO. Not available if you enroll in the HSA PPO.
VMware Funding per pay period Individual: $31.25
Family: $62.50		 No employer funding. No employer funding.
Your Contributions You may contribute as little as $100 a year up to the maximum allowed by the IRS ($3,850 employee only, $7,750 for family)2. If you are age 55 or older, you can contribute up to an additional $1,000 per year. You can contribute any amount between $25 and $2,850 annually. You can contribute any amount between $25 and $2,850 annually.
Paying for Care The HSA can be used to pay for eligible medical, prescription, dental, and vision expenses. Or you can save the money in your account for future health care expenses. Reimburses you for eligible dental and vision expenses. Reimburses you for eligible medical, prescription drug, dental, and vision expenses.
 
Tax Savings No taxes on contributions.3
No taxes on withdrawals for eligible expenses.
No taxes on earnings from interest or investments.		 No taxes on contributions.
No taxes on withdrawals for eligible expenses.		 No taxes on contributions.
No taxes on withdrawals for eligible expenses.
Do funds roll over? Yes. Any funds left over in your HSA will roll over year-to-year. You earn interest, tax-free, on the balance in your account. Any amount up to $570 will automatically be rolled over into the next plan year. Any amount up to $570 will automatically be rolled over into the next plan year.
Account Administration HealthEquity is the account administrator. TRI-AD is the account administrator. TRI-AD is the account administrator.

1 All existing employees enrolled in the HSA PPO as of January 1 will receive employer funding of $750/$1,500 (Employee Only/Family). All new hires as of January 1 will receive employer funding on a quarterly basis (divided by 4). VMware funding based on coverage at the end of each quarter. Must be active on the last day of the quarter. Paid Interns are not eligible for VMware funding. HealthEquity accounts funded the pay period following the close of quarter.
2 IRS maximums include employer and employee contributions combined.
3 Employer and employee contributions to the HSA are tax-free for federal and most state taxes. However, HSA contributions are not tax deductible for AL, CA, and NJ.

Dependent Eligibility

    • Health Savings Account – Spouse but not domestic partner. If a child is still a tax-dependent (up to age 19 or if full-time student, age 24) then the child’s out-of-pocket medical expenses can be paid with your HSA
    • Limited Purpose FSA – Federal tax dependents
    • General Purpose FSA – Federal tax dependents
    • Dependent Care FSA – Under age 13, or is physically or mentally unable to care for themselves regardless of age. This could include care for a disabled spouse or for a parent living with you, provided you claim this individual on your federal tax return

Contact Us

Contact HR Source [VMware network access required]
ASK HR [VMware network access required]
Phone: 1-888-869-2738

HealthEquity
Phone: 1-866-296-2857
Visit website

TRI-AD
Phone: 1-888-844-1372
Visit website

Resources

Key Benefit Terms

Last Updated: 9 Jan 2023, 6:38 PM