Health Savings and Flexible Spending Accounts
The Health Savings Account (HSA) and Flexible Spending Accounts (FSAs) allow you to set aside a portion of your income before taxes to pay for certain out-of-pocket health care and dependent care expenses. Money deducted from your pay and contributed to an HSA or FSA is not subject to taxes, reducing your taxable income and resulting in tax savings.
Colgate-Palmolive offers three types of accounts for health-related expenses and one account for dependent care expenses.
Health Care Flexible Spending Account (HCFSA)
If you enroll in the EPO or PPO plan, or waive medical coverage, the HCFSA can be used to pay for eligible medical, prescription drug, dental, vision and certain over-the-counter health-related expenses.
Health Savings Account (HSA)
You’ll be automatically enrolled in an HSA if you elect the HDHP/HSA plan option. An HSA can only be paired with the HDHP medical plan option. HSA funds can be used to pay for eligible medical, prescription drug, dental, or vision expenses.
Limited Purpose Flexible Spending Account (LPFSA)
Available if you choose the HDHP/HSA. LPFSA funds can be used to pay for eligible dental and vision expenses only. Consider how this works with your HSA.
Dependent Care Flexible Spending Account (DCFSA)
The DCFSA can be used to pay part or all of certain dependent care expenses such as child or elder care or babysitting in your home on a before-tax basis. Enrollment in the DCFSA is not related to your medical plan coverage or participation in an HSA, HCFSA or LPFSA. Unlike the HCFSA and LPFSA, there is no roll over provision for the DCFSA. In other words, all unused DCFSA funds will be forfeited at the end of the plan year.
Did you know?
Because the FSAs operate on a year-to-year basis, they carry a risk of loss; some of the balance left in the account after year-end may be forfeited. If you enroll in the HCFSA or LPFSA for 2025, up to $660 in unused funds will carry over to 2026.
But the HSA is different — the money you and Colgate-Palmolive contribute to it remains yours from year to year, even if you leave Colgate-Palmolive.
