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Tax Savings Accounts

Health Savings Accounts (HSAs) offer tax-free contributions, growth, and withdrawals for qualified medical expenses. Flexible Savings Accounts (FSAs) allow pre-tax contributions for healthcare costs.
Learn how to make your Health Savings Account (HSA) work for you. Watch the HSA Video.

You must enroll to receive BMO’s HSA contribution or to participate in the FSA.

Below is an overview of the HSA and FSAs for 2024.

HSA Overview
Features

An HSA lets you set aside pre-tax dollars to pay for eligible medical, prescription, dental, and vision expenses for you and your eligible dependents.

  • Eligibility: You are eligible if you are enrolled in the Consumer Choice Plan. You are not eligible if you are covered by Medicare, or other health insurance that is not a high deductible plan, including coverage under your spouse’s medical plan.
  • IRS Annual Contribution Limits: $4,150 for employee-only coverage; $8,300 for all other coverage levels; $1,000 catch-up contribution if you are age 55 or older in 2024.
  • BMO Contributions: BMO makes an annual Core Contribution based on your total compensation as of September 30, 2023, and a Match Contribution for eligible salary tiers.
    • Core Contribution: You must confirm you are eligible to have an HSA and authorize BMO to open an HSA on your behalf at Smart-Choice Accounts, the HSA administrator.
    • 2024 Enhanced Core Contribution: If your total compensation is less than $130,999 (as of September 30, 2023), BMO will make a one-time enhanced Core Contribution of $250 for employee-only coverage and $500 for other coverage levels.
  • Match Contribution: Dollar-for-dollar match up to the maximum that you are eligible for based on your total compensation.
Total Compensation BMO HSA Employer Contributions (EE Only/Family)
Core Contribution Maximum Match Contribution Maximum BMO Contribution
$70,999 and under $750/$1,500* $250/$500 $1,000/$2,000*
$71,000 – $130,999 $500/$1,000* $250/$500 $750/$1,500*
$131,000 – $175,999 $0 $250/$500 $250/$500
$176,000 – $285,999 $0 $0 $0
$286,000 and over $0 $0 $0

* Includes BMO’s one-time enhanced core contribution for 2024.

FSAs Overview
Health Care FSA

Set aside before-tax dollars to pay for health care expenses which reduces your taxable income and increases your take-home pay.

  • HCFSA contributions: The minimum contribution is $100 and the maximum is $3,200 in 2024. 
  • Eligibility: You may participate in the HCFSA if you aren’t covered by a High Deductible Health Plan. Or you’re covered by BMO’s Consumer Choice Plan but are not eligible to contribute to an HSA.
  • Eligible expenses: Use your HCFSA to reimburse yourself on a before-tax basis for medical/dental/vision deductibles and copays, over-the-counter medications, and more. See IRS Publication 502 for a complete list of eligible expenses.
Limited Purpose FSA If you do have an HSA, use a Limited Purpose FSA to pay for eligible dental and vision expenses.
Dependent Care FSA

Set aside pre-tax dollars to pay for daycare expenses through the Dependent Care FSA.

  • DCFSA contributions: The minimum contribution is $100 per year and the maximum is $5,000 if you file taxes jointly or $2,500 if you file separately.
  • Eligible expenses: You can pay for eligible dependent care expenses for dependent children under age 13, your spouse, or other dependent who is physically or mentally incapable of self-care and claimed as an exemption on your federal tax returns. See IRS Publication 503 for a complete list of eligible expenses.