Savings Accounts (HSA/FSA)

Overview

East West Bank offers you the following tax-advantaged accounts and encourages you to take full advantage of their money-saving potential.

You can enroll in them on the UKG website as a new hire, during Open Enrollment, or if you have a qualifying life event. Note: You must enroll in these accounts each Open Enrollment if you want to contribute the next year, even if you already participate.

Tax-advantaged accounts

*Contributions are not subject to federal income tax. However, HSA contributions 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.

Tax-free money.

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

Convenient payroll deductions.

Contribute to your accounts easily and effortlessly.

Helpful budgeting tool.

Plan for upcoming expenses by setting aside money each paycheck.

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 get $733 in tax savings 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 illustration 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.

*Contributions are not subject to federal income tax. However, HSA contributions 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

With the Blue Shield Savings Plus PPO, you’re eligible to open and contribute money to a Health Savings Account (HSA) through HealthEquity. The HSA is a tax-free savings account that you own. You can use it to pay for eligible health expenses anytime, even in retirement.

Get unbeatable advantages with an HSA

The HSA has a triple-tax advantage that trumps even a 401(k) or Roth IRA.

*Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses.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.

Contribution limits

Keep in mind, the maximum amount you can contribute to your HSA is determined by annual limits that the IRS sets. In 2024, the total contribution limits are:

$4,150 if you have associate-only medical plan coverage, or
$8,300 if you cover dependents.

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

Getting started

To contribute to an HSA, you must enroll in the Blue Shield Savings Plus PPO. You will elect your HSA contribution amount during enrollment. You can then manage your account through the HealthEquity website.

As you start using your account, keep in mind that you can only spend money that has actually been 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.

Health Care FSA

Using a Health Care FSA is like getting a discount on everyday health expenses because you’re paying with tax-free money. The Health Care FSA is administered by HealthEquity.

With FSA money, you “use it or lose it.” If you have a balance left in your FSA as year-end approaches, try to spend as much of it as you can on eligible expenses. Request reimbursement or manage your account on the HealthEquity website.

A Health Care FSA is available to associates who enroll in the Blue Shield Custom PPO, Blue Shield PPO, or any of the HMO plans, or who do not elect medical coverage. You can contribute up to $3,200 for the year through pretax payroll deductions to help cover eligible medical, dental, and vision expenses. For more information about eligible expenses, see IRS Publication 502.

How the Health Care FSA works

Dependent Care FSA

Using a Dependent Care FSA is like getting a discount on everyday dependent care expenses because you’re paying with tax-free money. HealthEquity administers the Dependent Care FSA.

A Dependent Care FSA is available to all associates. You can contribute up to $5,000 for the year through pretax payroll deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders. For more information about eligible expenses, see IRS Publication 503.

How the Dependent Care FSA works

Commuter Spending Account

To ease the cost of your commute to work, the East West Bank Commuter Spending Account lets you set aside pretax dollars from your paycheck to help pay for monthly parking or transit costs. It’s easy and flexible.

How it works

Compare the Accounts

	HSA	Health Care FSA	Dependent Care FSA
Available with …	Blue Shield Savings Plus PPO	Blue Shield Custom PPO Blue Shield PPO Blue Shield HMO Kaiser CA HMO Kaiser WA HMO (Also available if you waive medical coverage)	Your employment at East West Bank
Receive company contribution?	No	No	No
Change your contribution amount anytime?	Yes	No	No
Access your entire annual contribution amount as needed?	No	Yes	No
Access only funds that have been deposited?	Yes	No	Yes
Use account money for…	All eligible health care expenses	All eligible health care expenses	Eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders
“Use it or lose it” at year-end?	No	Yes	Yes
Money is always yours to keep?	Yes	No	No