tax savings accounts
tax savings accounts

Tax-Savings Accounts

 

Caterpillar allows you to stretch your hard-earned dollars by reducing your out-of-pocket costs for eligible health and dependent care expenses and/or parking and public transit expenses through our tax-savings accounts:

  • Health Savings Account (HSA)
  • Health Care Flexible Spending Account (FSA) (general and limited-purpose)
  • Dependent Care FSA
  • Commuter Account

Contacts

Health Savings Account

 

A Health Savings Account (HSA) is a tax-advantaged savings tool that provides triple-tax savings:

  • Contributions to your HSA can be made with pretax dollars through payroll deductions, which reduces your taxable income. Any after-tax contributions that you make to your HSA are also tax-deductible on your tax filing at the end of the year.
  • Interest and investment earnings on HSA funds grow tax-free.
  • Withdrawals from the HSA are also tax-free when used to pay for qualified healthcare expenses.
  • You can contribute to your HSA through payroll deductions, and Caterpillar will contribute “seed money” to your HSA.

Learn more

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To be eligible to make or receive contributions to an HSA, you must meet eligibility requirements:

  • You must be covered by a high deductible health plan (HDHP). Caterpillar’s CDHP options qualify as HDHPs.
  • You must not have other health coverage, such as coverage under a traditional health plan, Medicare or TRICARE.
  • You or your spouse must not have a general-purpose health FSA (also known as a full-purpose FSA).
  • You must not be claimed as a dependent on someone else’s tax return. If you are married, you are not considered a tax dependent of your spouse for this purpose.
  • You must not have received VA Benefits in the previous 3 months. Contact HealthEquity Member Services at 844-311-9732 for additional information on your specific situation.

If you enroll in one of the CDHP medical plan options, you’ll be prompted to set up an HSA during the enrollment process. You’ll first need to answer a few questions to determine if you’re eligible for an HSA. If you are eligible, you’ll need to contact HealthEquity to set up the account.

Each year, together you and Caterpillar can contribute up to the IRS annual limit. If your spouse has his/her own HSA, your combined contribution totals are subject to the family contribution limit.

Caterpillar’s contribution is deposited in your paycheck in January, or as soon as administratively possible following your new hire enrollment.

HSA contributions are exempt from federal income taxes but may be subject to state taxation in some states. For more information, visit HealthEquity.com/Caterpillar or contact HealthEquity.

You may change your Health Savings Account contribution any time during the plan year. Mid-year contribution changes are effective the first day of the following month. Maximum HSA contributions are set by the IRS. It is your responsibility to ensure that your total contributions for the year do not exceed IRS limits. Consult your tax advisor for more information.

To make contribution changes, log into the Caterpillar Health Enrollment Center's website or call 1-833-735-2127.

It’s important to designate a beneficiary in the event that something happens to you. You can change your beneficiary elections at any time.

 

Disclaimer: An HSA is an individual custodial account that you establish with HealthEquity (or other financial institution) to be used for reimbursement of qualified medical expenses as set forth in Internal Revenue Code Section 223. An HSA is not an employee welfare benefit plan and is not subject to the Employee Retirement Income Security Act of 1974, as amended (ERISA). Caterpillar does not sponsor or administer your HSA.

Please note: Any funds sent for your account by you, your employer, or others on your behalf will be held and not deposited to your HSA until you have provided the required documentation to HealthEquity. Held funds will be automatically returned after 60 days if your documentation has not been received and verified by HealthEquity.

Flexible Spending Account

 

A Flexible Spending Account (FSA) allows you to set aside money for certain expenses before payroll deducts taxes from your paycheck. This means the amount of income your taxes are based on will be lower, so your tax liability will be lower. With an FSA, you can reduce your taxes while paying for things you’d have to pay for anyway.

Caterpillar offers two Flexible Spending Accounts:

  • Health Care FSA (general-purpose or limited-purpose)
  • Dependent Care FSA (for children or elders who live with you)

Learn more

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Health Care FSA
You can enroll in the general-purpose Health Care FSA if you’re enrolled in a traditional medical plan, such as the BCBS National or UHC Consumer Choice plan option.

If you’re enrolled in a high deductible health plan, such as a Caterpillar CDHP option, you can enroll in a limited-purpose Health Care FSA to be reimbursed for eligible dental and vision expenses, but not medical. The reason for this is because CDHPs include a Health Savings Account (HSA) feature that’s similar to a Health Care FSA and the IRS will only allow you to participate in one at a time.

Dependent Care FSA
You can enroll in the Dependent Care FSA regardless of your medical plan election.

Each year, you can contribute up to the IRS annual limit. You and your spouse may be limited in your Dependent Care FSA contributions if both contribute to a Dependent Care FSA.

You may change your FSA contribution amount during the annual enrollment period each fall. Changes go into effect the following January 1. You may only make mid-year changes if you experience a qualified life event, such as getting married or divorced, or adding a baby. If you experience a qualified life event, you’ll have 31 days to make changes to your FSA election. Log into the Caterpillar Health Enrollment Center's website or call 1-833-735-2127.

Commuter Account

 

With the Commuter Account, you can save on taxes for the funds you use to pay for public transit and public parking, including bus, subway, ferry, train or qualified vanpooling. (Note: Caterpillar parking fees paid through payroll deduction aren’t eligible).

Learn more

Disclaimer: A Commuter Account is an individual custodial account that you establish with HealthEquity to be used for reimbursement of qualified transit and/or parking expenses as set forth in Internal Revenue Code Section 132(f). A Commuter Account is not an employee welfare benefit plan and is not subject to the Employee Retirement Income Security Act of 1974, as amended (ERISA). Caterpillar does not sponsor or administer your Commuter Account.

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You can enroll anytime. Just visit www.healthequity.com/wageworks, click on Login/Register and then Employee Registration. Once you’ve set up a new username and password, you can log in and select Enroll in Commuter. 

Contribution limits vary by year. Maximum contributions are set by the IRS. It is your responsibility to ensure that your total contributions for the year do not exceed IRS limits. Consult your tax advisor for more information.

You may change your Commuter Account contributions any time during the plan year. Log on to HealthEquity’s website to view and/or change your contribution amount at www.healthequity.com/wageworks.

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FSA Tax Savings Calculator

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