Overview
Spending and savings accounts allow you to pay for certain expenses with before-tax contributions from your pay and save on out-of-pocket costs. The following accounts are available:
Use It or Lose It Reminder
The Health Care Spending Account (HCSA) and Limited Purpose HCSA are subject to the “use it or lose it" rule under the Internal Revenue Code. This means that any unused balance will not roll over to the next year.
For expenses you incurred between January 1 and December 1, 2024, you must finish the claims filing process (including providing any needed supporting documentation) by June 30, 2025. To view a list of eligible expenses and file claims, log on to the Optum Financial website through My Total Compensation and Benefits.
Health Savings Account (HSA)
if you enroll in the High Deductible Plan with HSA
Limited Purpose Health Care Spending Account (LPSA)
if you enroll in the High Deductible Plan with HSA
Health Care Spending Account (HCSA)
Dependent Day Care Spending Account (DCSA)
Transportation Reimbursement Incentive Program (TRIP)
Health Savings Account (HSA)
When you enroll in the High Deductible Plan with HSA, you can open an HSA. The HSA is designed to be used in conjunction with the High Deductible Plan with HSA to pay for eligible health care expenses that the Plan does not cover with tax-free dollars, including your deductible. Citi will contribute money into your HSA each year that you are eligible, if you open an HSA by the deadlines noted in the “Build It.” dropdown in the How the HSA Works section below.
In addition to the HSA, you may choose to contribute to a Limited Purpose Health Care Spending Account (LPSA) for qualified dental, vision and preventive medical care expenses only.
An HSA offers three tax advantages:
- The money you and Citi (if eligible) contribute to the account is tax-free.
- Your HSA earns interest tax-free. With a minimum of $1,500, you can invest your HSA. Any related investment earnings are tax-free as well.
- When you pay for qualified health expenses with the money in your HSA, your withdrawals are tax-free.
You Must Be Eligible to Contribute to an HSA
You can open an HSA if you meet all the following criteria:
- You are covered under the Citi High Deductible Plan with HSA.
- You do not have other health coverage, including a Health Care Spending Account, except what is permitted under “other health coverage.” (i.e. limited purpose health care spending account)
- You are not enrolled in Medicare Part A & B or Medicaid.
- You are not claimed as a dependent on someone else’s tax return.
How the HSA Works
Start It.
To receive Citi’s contribution and to make contributions on your own behalf, you must open an HSA by accepting the terms and conditions and satisfying Citi’s policies and procedures required to establish an HSA.
Build It.
You can add before-tax contributions to your HSA, up to IRS limits noted below. You can have tax-free money deducted from your pay and deposited directly into your HSA. You can change your contribution amount at any time during the plan year, so your savings can match your budget for upcoming health care expenses.
Citi contributes, too: up to $500 for Employee Only coverage and up to $1,000 for any other coverage category.
Establishing an HSA: Citi will make quarterly contributions of $125 (for employee only coverage) or $250 (for any other coverage level) if you meet the criteria noted on this page by the deadlines below:
| If You Open Your HSA by: | You Will Begin Receiving Citi’s Contribution in: |
|---|---|
| 4:00 p.m. ET on December 31 | January |
| 4:00 p.m. ET on March 31 | April |
| 4:00 p.m. ET on June 30 | July |
| 4:00 p.m. ET on September 30 | October |
Use It.
You will receive a payment card for your HSA, designed to make it easier to pay for care. Use your HSA funds to pay for eligible health care expenses, like your deductible, coinsurance and other qualified medical, dental and vision care expenses, for you and your dependents. Visit www.irs.gov and access Publication 502 for a list of eligible expenses. It may be beneficial to pay for your health care expenses out of pocket to let your account grow.
Note: As part of the CARES Act, you can use your HSA for an expanded list of eligible healthcare purchases, including over-the-counter drugs, medicines not prescribed by a physician and menstrual care products. Access a detailed list of eligible expenses by clicking on “TRIP and Spending Accounts” under “Want to Get to Our Best in Class Vendors Fast?” in the upper right hand corner of My Total Compensation and Benefits.
Grow It.
Unused funds in your HSA will roll over to the next year. Once your balance reaches a certain amount, you may invest it, allowing it to grow over time.
Keep It.
You always own the funds in your HSA. You can take the account with you if you retire or leave Citi.
Invest in Your Future
Consider the HSA when you are planning for retirement. The HSA has a few key advantages, including:
- Your unspent HSA dollars carry over year after year — you will never lose them because the HSA belongs to you. Your HSA can accumulate tax-free over time — you can use any balance remaining after you terminate employment, including for health expenses in retirement.
- Your HSA balance can earn interest, and any amount above $1,500 can be invested. Any interest and investment gains you earn are tax-free, and can be withdrawn tax-free as long as the money is used to pay for qualified health care expenses.
For more information, visit the Optum Financial website via My Total Compensation and Benefits or call ConnectOne at
1 (800) 881-3938 . From the ConnectOne “benefits" menu, choose the “health and insurance benefits as well as TRIP and spending accounts" option.
Do not forget! During retirement, your HSA can be used for eligible health care expenses, tax-free.
2024 HSA Contributions
| Employee Only | All Other Coverage Levels | |
|---|---|---|
| Citi’s contribution | Up to $500 | Up to $1,000 |
| Total contribution allowed by the IRS | $4,150 | $8,300 |
| Amount you can contribute if you receive Citi’s entire annual contribution* | Up to $3,650 | Up to $7,300 |
*If you will be age 55 or older in 2024, you can contribute an additional $1,000.
Pay with Your HSA
HSA Debit Card
Use your HSA debit card to pay your doctor directly (if you established an HSA and there are sufficient funds in your account).
Reimburse Yourself
Visit Optum Financial through My Total Compensation and Benefits to pay claims or reimburse yourself for eligible out-of-pocket expenses from your HSA, if you established one and have sufficient funds in your account. If there is not enough money in your HSA to cover the claim, you can reimburse yourself after funds are deposited into your HSA.
File Later
Pay out of pocket and submit a reimbursement request to have funds withdrawn from your HSA at a later date. You do not have to file for reimbursement during the same year the expense was incurred.
Pay Out of Pocket
Pay out of pocket and save your HSA balance for expenses you incur later this year or in future years.
Note: Money in an HSA grows tax-free and can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses (a list of eligible expenses can be found in IRS Publication 502, available at www.irs.gov). If HSA funds are used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw HSA funds before age 65. After age 65, you can use your HSA funds for any purpose with no penalty, but will still pay ordinary income tax.
Download the Apps
Download the Optum Financial App for fast access to your information.
Maximize Your Savings with the HSA and LPSA
Like the LPSA, your HSA may be used for dental and vision expenses. To make the most of your HSA you might consider contributing to the LPSA, to cover dental, vision and preventive care medical expenses, and reserving your HSA balance for other or future health care expenses. This way, you can continue to save and grow your HSA through investment and interest earnings, if applicable.
Important Tax Information
If you enroll in the High Deductible Plan with HSA and open a Health Savings Account, there are also a few important tax rules you need to follow:
- Do not contribute more than the annual IRS limit (including Citi’s contributions). If your contributions exceed the IRS limit, the excess amount will be subject to standard income tax rates plus a 6% penalty. However, you can remove the excess amount to avoid the penalty if you realize your mistake in time. If you submit a Distribution Request Form through Optum Financial via My Total Compensation and Benefits, there is no penalty as long as the distribution is made before the tax filing deadline, which is April 15 of each year.
- Save your receipts in case of an IRS audit. You are responsible for providing documentation that proves that you used your HSA only for qualified health-related expenses. If you use your HSA funds for expenses other than qualified health-related expenses, you will owe taxes on the withdrawal, as well as a 20% penalty tax on those HSA funds. If you use an outside credit card or personal cash to pay for an eligible health care expense, you can use your HSA to reimburse yourself, but make sure to keep the receipt as proof.
- Disclose all HSA contributions and withdrawals on your taxes. You will need to submit Form 8889 along with your tax return. Optum Financial will provide information on HSA contributions and disbursements that you can use when filling out the form.
Review IRS Publication 969, available at www.irs.gov for detailed information about HSA qualifications, contributions and distributions, and how your HSA contributions will affect your tax return.
Health Care Spending Account
The Health Care Spending Account (HCSA) can be used to pay for health care expenses for you and your family that are not paid by any medical, dental or vision plan. You can contribute as long as you are not enrolled in the High Deductible Plan with HSA.
The HCSA has the following features:
Contribute to the Account
You can contribute between $120 and $3,200 for 2024. You have access to the entire amount elected for the year starting with your first day of coverage.
Pay for Qualified Health Care Expenses
The HCSA can be used for qualified health care expenses, including, but not limited to:
- Doctor visit copays
- Prescription drugs
- Vision care expenses, such as exams, prescription eyeglasses and sunglasses
- Physical therapy
- Menstrual care products
- Over-the-counter drugs
Visit www.irs.gov and access Publication 502 for a complete list of eligible expenses.
Easy to Use
You receive a payment card to pay for eligible expenses. Use it to pay for eligible services at the doctor's office, pharmacy or other providers. You also have the option of paying out of pocket for medical care and later filing a claim on the Optum Financial website available through My Total Compensation and Benefits.
“Use It or Lose It”
The HCSA is a spending account subject to the “use it or lose it” rule under the Internal Revenue Code. This means that you must incur eligible expenses each year to use the HCSA balance because it cannot be rolled over and used the next year.
As you are determining how much to contribute to an HCSA, plan accurately using the planning tools on Your Benefits Resources™ (YBR™) found on My Total Compensation and Benefits because any balance remaining unused by December 31, is subject to forfeiture. As such, you should think carefully about your health care needs for the coming year before electing your contribution amount.
Reminder
You must file claims and provide supporting documentation for expenses. Any outstanding issues related to such expenses must be resolved no later than June 30 of the following plan year. To file a claim, log on to the Optum Financial website through My Total Compensation and Benefits.
Download the Apps
Download the Optum Financial App for fast access to your information.
Limited Purpose Health Care Spending Account
The Limited Purpose Health Care Spending Account (LPSA) can be used to pay for vision, dental and preventive care medical expenses for you and your family that are not paid by any medical, dental or vision plan or your Health Savings Account (HSA). Remember: The LPSA can only be used with the High Deductible Plan with HSA and Health Savings Account (HSA).
The LPSA has the following features:
Contribute to the Account
You can contribute between $120 and $3,200 for 2024. You have access to the entire amount elected for the year starting with your first day of coverage. You can only increase, decrease or stop your contributions during the year if you experience certain qualified changes in status.
Pay for Qualified Expenses
The LPSA can only be used for qualified dental and vision care expenses which include, but are not limited to:
- Preventive care
- Dental cleanings and fillings
- Orthodontia
- Eye exams
- Prescription eyeglasses and sunglasses
- Prescription contact lenses
- Laser surgery
Easy to Use
You receive a payment card to pay for eligible expenses. Use it to pay for eligible services at the doctor's office, pharmacy or other providers. You may also pay out of pocket for care and later file a claim on the Optum Financial website available through My Total Compensation and Benefits.
“Use It or Lose It”
The LPSA is a spending account subject to the IRS “use it or lose it” rule. This means that you must spend your balance each year because it cannot be rolled over into the next year.
As you are determining how much to contribute to an LPSA, be sure to plan accurately using the planning tools on Your Benefits Resources™ (YBR™) found on My Total Compensation and Benefits. You will forfeit any unused funds by December 31, so think carefully about your health care needs for the coming year before electing your contribution.
Reminder
You must file claims and provide supporting documentation for expenses. Any outstanding issues related to such expenses must be resolved no later than June 30 of the following plan year. To file a claim, log on to the Optum Financial website through My Total Compensation and Benefits.
Download the Apps
Download the Optum Financial App for fast access to your information.
Dependent Day Care Spending Account
The Dependent Day Care Spending Account (DCSA) can be used to pay for certain dependent day care expenses so that you (and your spouse, if applicable) can work or look for work. Note: The DCSA cannot be used to pay for health care expenses for your dependents.
The DCSA has the following features:
Contribute to the Account
You can contribute between $120 and $5,000 per year on a before-tax basis to reimburse yourself for day care expenses for qualified dependents so that you (and your spouse, if you are married) can work or look for work.
Pay for Qualified Expenses
Examples of eligible dependent day care expenses include:
- Care at a licensed nursery school, day camp (including specialty camps) or day care center
- Services from individuals who provide dependent day care inside or outside your home, unless the provider is your spouse, your own child under age 19 or any other dependent
- After-school care for children under age 13
- Household services related to the care of an elderly or disabled adult who lives with you
- A care provider’s expenses for the transportation between your house and the place that provides day care services
Note: You cannot use the DCSA to reimburse yourself for your dependent children's health care expenses. Use the HCSA or LPSA for eligible health care expenses.
Easy to Use
You can submit a claim for eligible expenses online on the Optum Financial web site, available through My Total Compensation and Benefits, or you can submit a paper claim to Optum Financial using the Dependent Day Care Account Claim and Provider Documentation Form. The claim-filing instructions are on the Optum Financial website and the Dependent Day Care Account Claim and Provider Documentation Form.
“Use It or Lose It”
The DCSA is a spending account subject to the IRS “use it or lose it” rule. This means that you must incur eligible expenses each year to use the DCSA balance because it cannot be rolled over and used the next year.
As you are determining how much to contribute to an DCSA, plan accurately using the planning tools on Your Benefits Resources™ (YBR™) found on My Total Compensation and Benefits because any balance remaining unused by December 31, is subject to forfeiture.
Reminder
You must file DCSA claims and provide supporting documentation for expenses. Any outstanding issues related to such expenses must be resolved no later than June 30 of the following plan year. To file a claim, log on to the Optum Financial website through My Total Compensation and Benefits.
Transportation Reimbursement Incentive Program
The Transportation Reimbursement Incentive Program (TRIP) lets you use pre-tax dollars pay for the cost of public transportation and parking so you can commute to and from work. You can elect to participate in:
- A Transit Account: to pay for eligible transit expenses, such as bus, subway, train, ferry and Metro passes, as well as vanpooling.
- A Parking Account: to pay for parking on or near Citi's business location from which you commute to work by mass transit, vanpool or carpool.
Program Eligibility
You are eligible to enroll in TRIP if:
- You commute to work by public transportation (bus, subway, train, ferry or van pool) or you commute to work by car and have out-of-pocket parking expenses
- You do not participate in another Company-sponsored parking or mass transit program
How the Program Works
TRIP allows you to purchase transit and parking passes, up to $315, online so you can commute to and from work. The first $315 of your transit and/or parking pass will be deducted from your pay before taxes are withheld. Any amount of your transit pass or parking pass that exceeds $315 will be deducted from your pay after taxes are withheld.
You receive a payment card to pay for eligible expenses when you make your monthly elections. You can swipe that card, like a debit card, to pay for transit and parking expenses, or you can also pay out of pocket and later file a claim on the Optum Financial website available through My Total Compensation and Benefits.
How to Enroll and Make Updates
You can enroll in TRIP on the Optum Financial website, available as a link from My Total Compensation and Benefits. You do not need to wait until Annual Enrollment to enroll in TRIP. The deadline to enroll or change your TRIP participation is generally the 10th of every month for participation that begins the 1st of the following month. Your next months' commuter funds will be available up to one week before the start of the month, as long as you enroll/update your election by the by the 10th. If you miss the deadline, your enrollment/change will be effective the following month.
Note: For some transportation authorities, such as the Long Island Railroad and Metro-North Railroad, the deadline to enroll or change your TRIP participation is the 4th of every month (rather than the 10th of every month).