Tax-advantaged accounts such as Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) let you set aside pre-tax money for tax-free reimbursement of certain health or dependent care expenses. Each account has its own unique features and advantages.
Tax-Advantaged Accounts
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General Purpose |
Limited Purpose Health Care FSA |
Dependent Day Care FSA |
HSA |
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|---|---|---|---|---|
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Who's Eligible
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All benefits-eligible |
All benefits-eligible employees; however, generally only those contributing to an HSA would elect the limited purpose health care FSA, which reimburses only for eligible dental and vision expenses. The Limited Purpose Health Care FSA doesn't reimburse for medical expenses |
All benefits-eligible |
Participants in these plans:
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2025 Contribution Limit |
$3,200 |
$3,200 |
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Still have questions about HSAs and FSAs?
Watch October's Wealth Webinar Wednesday Exploring the Benefits of HSAs and FSAs.
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Fidelity explains how HSA-eligible health plans, HSAs and FSAs work together, how they differ and the unique benefits of each.
HSA and FSA: Can I Have Both?
HSA participants can contribute to a limited purpose Health Care FSA, which may be used for dental and vision expenses only.
Other important information to consider:
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To contribute to an FSA in 2025, you must elect it during Annual Enrollment. Any 2024 plan year funds, up to $640, left credited to your Health Care FSA may carry over to the 2025 plan year (as long as you enroll in an FSA for 2025). Unused amounts left credited to the Dependent Day Care FSA don't carry over and will be forfeited.
- You can open an HSA at any time, but to start contributing in January, you must elect during Annual Enrollment and open an account.
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You own your HSA. It is not part of the Northrop Grumman Health Plan.
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Keep in mind that any contribution Northrop Grumman makes counts against the IRS contribution limit.
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Please note: If you choose not to make HSA contributions out of your pay, you must still have an HSA through NetBenefits to receive your well-being incentive* as an HSA contribution.
- If you haven't yet opened an HSA and don't want to make HSA contributions, you'll need to manually set your contribution at $0 after you open it. If you have an existing HSA account, it will be automatically set to $0.
*Baltimore and Sunnyvale represented employees are eligible for the Annual Physical Incentive
Other Plan Comparisons