Citi Benefits Handbook
Health Care Spending Account (HCSA)
You can contribute between $120 and $2,700 per year on a before-tax basis to reimburse yourself for eligible out-of-pocket health care expenses. Contributions are taken each pay period before federal and, in most locations, state and local taxes are withheld.
The $2,700 limit applies to each employee electing to participate in the HCSA. If you and your spouse/partner are both Citi employees, you can each contribute up to $2,700 to your own HCSA.
You must actively elect to participate in the HCSA during each Annual Enrollment or in 2020, you may enroll of make changes anytime until October 31, 2020. You may enroll in the HCSA if you are not enrolled in the High Deductible Health Plan (HDHP).
If you enroll in the HDHP, you cannot enroll in the HCSA. However, if you enrolled in the HCSA prior to a qualified change in status, then you are permitted to retain the HCSA, even if you elect an HDHP due to a qualified change in status. However, having enrolled in the HCSA precludes you from being eligible to establish or contribute to an HSA and/or enroll in the LPSA for the remainder of the plan year.
You can be reimbursed for expenses incurred only during the time you are enrolled. Generally, you can enroll as a new employee, during the Annual Enrollment period, or within 31 days of a qualified change in status. However, due to COVID-19, for 2020 you can enroll or prospectively change your election for any reason until October 31, 2020.
HCSA claims, including any pertinent supporting documentation to establish that a claim is eligible to be reimbursed, must be filed and resolved by June 30 of the calendar year following the calendar year in which the expense was incurred. Generally, you may change or stop your contributions as a result of a qualified change in status.
The amount of your payroll contributions will appear on your Form W-2 Wage and Tax Statement for the year in which you were enrolled.
In accordance with IRS guidelines, the Plan Administrator may reduce the rate of contribution by certain participants to ensure that the HCSA is not deemed to discriminate in favor of highly compensated employees.
If you are a reservist called to active military duty for more than 179 days, you are entitled to receive a taxable distribution of your HCSA balance (contributions less the amount reimbursed) if you request a distribution by the last day of the calendar year in which you made the contributions.