Savings & Spending Accounts

Overview

Rady Children's Health offers several tax-advantaged accounts through TRI-AD and encourages you to take full advantage of their money-saving potential. You can enroll as a new hire, newly eligible for coverage, during Open Enrollment, or if you have a qualifying life event.

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.

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

2026 tax-advantaged accounts

The IRS determines what expenses can be paid with money from an HSA or FSA. Learn more about the eligible expenses for each account:

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 save $733 in taxes 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 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.

*HSA contributions are not subject to federal income tax, but 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 HDHP 1700 and HDHP 6000, you’re eligible to open and contribute money to a Health Savings Account (HSA) through TRI-AD. The HSA is a tax-free savings account that you own. You can choose to spend the money right away as eligible health expenses come up or save it for the future — you can even use it in retirement.

Get a triple tax advantage!

With an HSA, you can:

¹ HSA contributions are not subject to federal income tax, but are currently subject to state income tax in CA and NJ. 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.

² Domestic partner expenses are not HSA-eligible.

The maximum amount you and Rady Children's Health can contribute to your HSA is determined by annual IRS limits. In 2026, the total contribution limits are:

$4,400 for individual coverage, or
$8,750 for family coverage

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

Keep in mind that the contribution amount you’re able to elect for the year will be reduced by the amount of Rady Children's Health’s annual contribution: $630 for individual coverage or $1,260 for coverage with dependents.

Use your HSA together with a Limited Purpose FSA for additional tax savings. With the Limited Purpose FSA, only dental and vision expenses are allowed.

Getting started

To contribute to an HSA, you must enroll in the HDHP 1700 or HDHP 6000. You will elect your HSA contribution amount during enrollment, but can change it anytime during the year. You can then manage your account through TRI-AD.

As you start using your account, keep in mind you can only spend money actually 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 Flexible Spending Accounts

Using a Flexible Spending Account (FSA) for health care expenses is like getting a discount because you’re paying with tax-free money. There are separate FSAs available to you, depending on your medical plan:

A Health Care FSA is available to employees who enroll in the Cigna PPO, Cigna Full Network HMO, SIMNSA, or do not elect medical coverage. This account can be used for all eligible medical, dental, and vision expenses.
A Limited Purpose Health Care FSA is available only to employees who enroll in a high-deductible health plan with an HSA. Adding a Limited Purpose FSA offers additional tax-saving opportunities. This account can be used only for eligible dental and vision expenses.

With either of these accounts, you can contribute up to $3,300 for the year through pre-tax payroll deductions.

Note: You must enroll in these accounts each Open Enrollment if you want to contribute the next year, even if you already have an account.

The deadline to submit expenses for reimbursement is March 31 of the following year; however, this applies only to claims for expenses incurred through December 31 of the prior year. Request reimbursement or manage your account through TRI-AD.

How the Health Care and Limited Purpose FSAs work

Dependent Care Flexible Spending Account

Child and elder care can present significant expenses for you. A Dependent Care Flexible Spending Account (FSA) allows you to pay less for child and elder care expenses by using tax-free dollars.

A Dependent Care FSA is available to all employees. You can contribute up to $7,500 for the year ($3,750 if married and filing taxes separately) through pre-tax payroll deductions to help cover your eligible dependent care expenses, including child care for children under age 13 and care for elders who you claim as a dependent on your tax return.

Note: You must enroll in this account each Open Enrollment if you want to contribute the next year, even if you already have an account.

The money in your Dependent Care FSA does not carry over to the next plan year; you must “use it or lose it.” The deadline to submit expenses for reimbursement is March 31 of the following year. Request reimbursement or manage your account on the TRI-AD website.

How the Dependent Care FSA works

Compare Accounts

	HSA	Limited Purpose FSA	Health Care FSA	Dependent Care FSA
Available with...	HDHP 1700 HDHP 6000	HDHP 1700 HDHP 6000	Cigna PPO Cigna Full Network HMO SIMNSA (Or, if you waive medical coverage)	N/A (All benefits-eligible employees may enroll)
Receive Rady Children's Health contribution?	Yes	No	No	No
Change your contribution amount anytime?	Yes	No	No	No
Access your entire annual contribution amount as needed?	No	Yes	Yes	No
Access only funds that have been deposited?	Yes	No	No	Yes
Use account money for…	All eligible health care expenses	Only dental and vision expenses	All eligible health care expenses	Eligible dependent care expenses, including child care for children up to age 13 and care for elders who are your dependents
Deadline to get expenses reimbursed	N/A; funds roll over	March 31 of the following year	March 31 of the following year	March 31 of the following year
Money is always yours to keep?	Yes	No	No	No