The myFlexplan stands out as one of the most dynamic and customizable options available to employees today. However, with this flexibility comes the responsibility of understanding key terms like "Allocation" and "Distribution Schedule" to make the most of your benefits. In this guide, we'll break down these concepts and provide step-by-step instructions to help you allocate your funds effectively and navigate the distribution schedule.
Understanding Allocation in the myFlexplan:
The myFlexplan empowers employees to allocate their funds according to their needs and priorities for the year. Allocation refers to the process of deciding where your benefit funds will be made available, such as Health Spending Account (HSA) and Wellness Spending Account (WSA). It's essential to grasp this concept early on, as your allocation decision will impact your access to funds throughout the year.
Allocation Tips and Guidelines:
Understand Your Needs and Priorities: Assess your health status, medical requirements, and wellness goals to determine the optimal allocation between HSA and WSA.
Review All Options: Familiarize yourself with available allocation options to make informed decisions aligned with your needs.
Factor in Coverage: Consider any existing health insurance coverage to optimize your allocation strategy and maximize benefits utilization.
Project Expenses: Estimate your healthcare expenses for the year and allocate funds based on where they would be most beneficial to you and your family.
Make Your Decision: After thorough consideration, allocate your funds between HSA and WSA.
Understanding the Distribution Schedule:
The Distribution Schedule determines how funds are disbursed to employees throughout the benefit year. Whether it's annual, semi-annual, quarterly, or monthly, your chosen schedule affects the frequency and amount of distributions you receive.
Allocating Your Funds:
To allocate your funds effectively, follow these steps:
Determine your total benefit amount for the year.
Choose your allocation ratio between HSA and WSA.
Allocate the appropriate amount during the initial distribution, ensuring it aligns with your chosen ratio for the year.
Each distribution date, your original allocation ratio will be matched for subsequent distributions.
Consider a scenario where an employee has a $600 myFlexplan that distributes quarterly. The first allocation, in this case, would be $150 (totaling $600 over the year). If the employee allocates $50 to HSA and $100 to WSA initially, subsequent distributions would follow the same ratio.
By understanding allocation and navigating the distribution schedule, you can make the most of your myFlexplan benefits and achieve your health and wellness goals effectively. If you have any questions or need assistance, don't hesitate to reach out to our support team for guidance at support@getmyhsa.com.