Maxwell supports the following financial products:
- Health Savings Account (HSA)
- Financial Spending Account (FSA) and Limited Flexible Spending Account (LFSA)
- Dependent Care Accounts (DCA)
- Health Reimbursement Account (HRA)- these are set up as informational-only products
- Commuter (Biking, Parking, Transit)
Financial products are a complex and unique area of benefits. There are some some nuances you should understand about how these products operate in Maxwell.
- You or your Advisor should add paycheck dates into Maxwell to ensure that per pay period amounts follow your company’s payroll schedule. If you do not enter paycheck dates, Maxwell will used an assumed payroll schedule to count pay periods. Learn more about per pay period amounts (deductions) here >
- While Maxwell does support maximum contributions based on IRS set guidelines, Maxwell does not prevent the employee from contributing an amount that would result in a higher payroll deduction than they are able to afford, given their salary.
- A maximum contribution for a financial product is based on the product effective dates and not on the calendar year. If you have a financial product with a plan year that spans 2017-2018, the annual maximum contribution will not automatically update once a new calendar year approaches. If you'd like to update this in the new year, ask your Advisor to make that change with Maxwell.
HSA product with a plan year of 11/1/17 - 10/31/18
Maximum contribution is $3400/individual, $6750/family
Two scenarios to keep in mind:
- Jim Halpert enrolls effective 11/1/17 - 10/31/18. Once 2018 hits, Jim’s contribution in Maxwell will not automatically be adjusted to account for any federal increases in contribution maximums for 2018.
- Andy Bernard enrolls effective 1/1/18 - 10/31/18. Although the IRS has increased the federal annual contribution maximum effective 1/1/2018, this does not update in Maxwell automatically. Andy’s maximum will still be what your Advisor originally set up: $3400/individual, $6750/family.
- When a new hire elects their annual contribution mid plan year, they should keep in mind that the per pay period amount is calculated based on their individual product effective dates, not the calendar year or the full plan year.
HSA product with a plan year 5/1/18 - 4/30/19
Andy Bernard enrolls effective 5/1/2018. When Andy decides his contribution amount, he should be thinking about what he wants to contribute from 5/1/2018 to 4/30/19, not from 5/1/18 - 12/31/18.