The Tax Saver Benefit (TSB) plan is designed to save tax dollars when you pay for IRS eligible expenses. When you elect to set aside salary contributions into one or both of the TSB accounts, heathcare or dependent care, the contributions are not subject to federal, state, local or FICA taxes. This can mean substantial savings. The TSB accounts are administered by the Nyhart Company.
Full-time (75% FTE or more) Academic (including IU Residents) and Staff employees are eligible to participate in each provision of the Tax Saver benefit plan:
Advantages of the TSB Account
This Plan allows you to reduce out-of-pocket costs for dependent care expenses and certain health expenses by using "tax-exempt" dollars. TSB dollars are generally not taxed by federal, state, local or FICA. Dollars usually paid in taxes end up in the employee's paycheck under the TSB plan.
You do not have to be enrolled in an Indiana University-sponsored health care plan to take advantage of these tax savings.
How much can you save? Take a look at this example.
The following is an example only and is based on an annual salary of $34,000. Tax savings will depend on one’s individual tax rate. Tax savings really do add up.
|Cost of eyeglasses|
|Contribution to TSB||
|Income taxes paid to take home $480||
|Amount you must earn to pay copays/coinsurance||
The annual contribution maximum is $2,550 for 2017 / $2,600 for 2018 per year per person (i.e. spouses can each have a TSB Healthcare account with $2,550). There is no minimum contribution requirement.
TSB Dependent Day/Evening Care
The contribution maximum is $5,000 per household. Spouses can elect TSB Dependent Care, but their combined elections cannot exceed $5,000. There is no minimum contribution.
Eligible Health Care Expenses
Examples of IRS-allowed expenses:
*For employees enrolled in both the Health Savings Account and the TSB Healthcare Reimbursement Account, reimbursements from the TSB Healthcare account are limited to dental and vision services, and other services only after the HDHP deductible is met.
Yes; however, when you are enrolled in both accounts, your TSB funds can only be used for dental and vision expenses until the HDHP deductible has been met for the year. Once the deductible is met for the year, the funds in the TSB can be then used for medical and prescription expenses incurred from that date forward.
First, in order to receive a reimbursement from the TSB Healthcare Account, a Direct Deposit Form (PDF) must be completed and turned in to Nyhart. No hard-copy reimbursement checks will be issued.
Then, there are two ways to use your TSB Healthcare Reimbursement account. You may:
For each expense in a claim for reimbursement a supporting document must be included. Supporting Documents (claim substantiation) can be in the form of:
Each supporting document must include the following:
Be sure to retain a copy of the Claim and the supporting documentation.
The IU Benefit Card is a debit-type Visa card that allows participants to pay for purchases and services from their TSB Healthcare Account, their Health Savings Account, or both. When you are enrolled in both the TSB Healthcare and HSA, your IU Benefits Card will be a “stacked card.” This means that when you use the card at a medical or pharmacy provider, the card will automatically draw from the HSA account. When used at a dental or vision provider, the card will automatically draw from TSB funds first, then the HSA once TSB funds have been exhausted.
See the IU Benefit Card Terms and Conditions (PDF) for detailed information.
Note: The IU Benefit Card does not apply to the TSB Dependent Care Reimbursement Account expenses.
This account allows you to set aside tax-free money that is later used to reimburse yourself for day/evening care expenses of a child (under age 13), or other qualifying tax dependents, in order to allow the employee and spouse to work.
The TSB Healthcare Reimbursement Account has a carryover provision at the end of each plan year. Plan participants are able to carryover up to $500 of unused TSB Healthcare Reimbursement Account funds into a new account in the following plan year.
When employees have more than $500 remaining in their TSB Healthcare account on December 31st:
The TSB Dependent Care Reimbursement Account does NOT have a carryover provision. Any unused funds in the account after April 15th will be forfeit.
Open Enrollment Help – IU Human Resources
Page updated: October 2017
IU Human Resources
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