You can save money by paying for eligible health care and dependent care expenses with tax-advantaged accounts. Motorola Solutions offers you several types of accounts that lower your taxes.
2024 accounts:
- Health Savings Account (HSA): Available only to employees who enroll in the $3,200 or $1,850 Deductible Plans
- Flexible Spending Accounts (FSAs):
- Health Care FSA: Available to any employees who do not enroll in an HSA
- Combination (Limited Purpose) FSA: Available to employees who are enrolled in the HSA
- Dependent Care FSA: Available to all employees
- Transit (Commuter) Spending Account: Available to all employees
Key features
Tax-free money
Money goes in tax-free and comes out tax-free when it’s used for eligible expenses.
Convenient payroll deductions
Contribute to your accounts easily and effortlessly.
Helpful budgeting tool
Plan for upcoming expenses by setting aside money each paycheck.
What's eligible?
How much could you save?
Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax, and $153 in FICA tax. Therefore, by contributing that $2,000 to his HSA or FSA, he’ll get a $733 tax savings for the year.
| Without an HSA or FSA, Tom would pay … | Savings |
|---|---|
| 24% in federal income tax | $480 |
| 5% in state income tax | $100 |
| 7.65% in Federal Insurance Contributions Act (FICA) tax | $153 |
| His total tax savings for the year with an HSA or FSA | $733 |
This hypothetical illustration is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.
With the $3,200 and $1,850 Deductible plans, you’re eligible to open and contribute money to a Health Savings Account (HSA) through TRI-AD. The HSA is a tax-free savings account that you own. You can use it to pay for eligible healthcare expenses anytime, even in retirement. You can change your contribution amount at any time during the year and it will be effective the first of the following month, subject to payroll timing.
HSA features
Put money in tax-free.
- Contribute to your HSA through before-tax payroll deductions (up to IRS annual limits).
- Change your contribution amount anytime.
Pay for care tax-free.*
- Pay for eligible medical, dental, and vision expenses for you and your family using your HSA debit card (provided sufficient funds are in your account).
- Track your spending, check your balance, reimburse yourself, and more on TRI-AD.
Carry unused money over.
- All the money in your HSA is yours to keep, year after year.
- You can build up savings to pay for future health care expenses. You can even invest your money once it reaches a minimum balance, which gives you the potential for tax-free earnings growth and a way to plan ahead for your medical costs in retirement.
Contribution limits
The IRS sets annual limits on the total amount of money that can be contributed to your HSA. In 2024, the limits on contributions are:
- $4,150 for employee-only coverage
- $8,300 for family coverage
Add $1,000 to these limits if you're age 55 or older.
Who’s eligible for an HSA
In order to establish and contribute to an HSA, you:
- Must be enrolled in either the $3,200 or $1,850 Deductible medical plan.
- Cannot simultaneously participate in the Health Care FSA.
- Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare.
- Cannot be claimed as a dependent on someone else’s tax return.
You should review IRS rules for making HSA contributions if you will turn age 65 during the year.
For more information, See IRS Publication 969.
Increase your tax savings with a Combination FSA
Use your HSA together with a Combination FSA for additional tax savings.
Using an FSA is like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money. There are separate FSAs for health care and dependent care.
Health Care FSA
Available to employees who do not enroll in an HSA, or do not elect medical coverage through MSI
- Contribute up to $3,050 in 2024 through before-tax payroll deductions to help cover eligible medical, vision, and dental expenses.
- Choose your contribution amount when you enroll. You can only change your contribution amount during the year if your personal situation changes.
- Your annual contribution will be divided into equal deductions from each paycheck, effective from your date of coverage. Your entire annual contribution amount is available to you, beginning from your date of coverage.
- Spend your money by using your FSA debit card, or log in to the TRI-AD website to request reimbursement for payments you’ve made.
- Unused money does not carry over at the end of each year — use it or lose it. Be sure to estimate your contribution carefully!
- Any remaining balance will be forfeited after Dec. 31, 2023. All qualified FSA expenses for 2023 must be submitted for reimbursement by March 31, 2024.
Combination FSA
Available only to employees who enroll in an HSA
- Designed to work together with your Health Savings Account (HSA) for additional tax-saving opportunities.
- Contribute up to $3,050 in 2024 through before-tax payroll deductions. Note that only dental and vision expenses are allowed until you meet the IRS-required medical deductible of $1,600/individual and $3,200/family, then eligible medical and prescription drug expenses are allowed. For a list of eligible expenses, refer to IRS Publication 502.
- Choose your contribution amount when you enroll. You can only change your contribution amount during the year if your personal situation changes.
- Your annual contribution will be divided into equal deductions from each paycheck, effective from your date of coverage. Your entire annual contribution amount is available to you, beginning from your date of coverage.
- Spend your money by using your FSA debit card, or log in to the TRI-AD website to request reimbursement for payments you’ve made.
- Unused money does not carry over at the end of each year — use it or lose it. Be sure to estimate your contribution carefully!
Dependent Care FSA
Available to all employees
- Contribute up to $5,000 annually through before-tax payroll deductions to help cover your eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders.
- Keep in mind, the Dependent Care FSA cannot be used towards dependent health care costs. For dependent heath care costs, consider enrolling in the HSA or Health Care FSA.
- Spend your money by using your FSA debit card, or log in to the TRI-AD website to request reimbursement for payments you’ve made.
- Choose your contribution amount when you enroll. You can only change your contribution amount during the year if your personal situation changes.
- Your annual contribution will be divided into equal deductions from each paycheck, effective from your date of coverage. You only have access to money that has actually been deposited into your account.
- Unused money does not carry over at the end of each year — use it or lose it. Be sure to estimate your contribution carefully!
Transit (Commuter) Spending Account
Available to all employees
Pay for transit expenses with pre-tax dollars, which can save you money on monthly costs related to your work commute.
- It’s easy and flexible. You decide how much to contribute, and the money is deducted from your paycheck automatically.
- Before-tax deductions are allowed up to the IRS limit of $300 per month for transit and/or $300 per month for parking.
- You can change your contribution amount at any time during the year and it will be effective the first of the following month, subject to payroll timing.
- Once you enroll, the contributions that you chose will roll over each month.
- Your Transit (Commuter) Spending Account funds are "use it or lose it" per IRS regulations. If you leave Motorola Solutions, you will forfeit any funds in these accounts. When electing your contributions, make sure to review and confirm that you are selecting amounts that bring you the most value each month.
| HSA | Combination FSA | Health Care FSA | Dependent Care FSA | Transit FSA | |
|---|---|---|---|---|---|
| Available with … |
$3,200 Deductible Plan
$1,850 Deductible Plan |
$900 Deductible Plan (Also available if you waive medical coverage) |
Any medical plan (Also available if you waive medical coverage) | Any medical plan (Also available if you waive medical coverage) | |
| Change your contribution amount anytime | Yes | No | No | No | Yes |
| Access your entire annual contribution amount at the beginning of the plan year |
No | Yes | Yes | No | No |
| Access only funds that have been deposited |
Yes | No | No | Yes | Yes |
| Use the money for. . . |
All eligible health care expenses | Only dental and vision expenses until you meet the IRS-required deductible, then use for all eligible health care expenses | All eligible health care expenses | Eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders | Eligible expenses incurred when commuting to and from work |
| “Use it or lose it” at year-end | No | Yes | Yes | Yes | No |
| Money is always yours to keep | Yes | No | No | No | No |
MSI also offers Reimbursement Programs to provide support for employees going through major life events.
Adoption Assistance
Available to employees who are in the process of adopting a child. This program provides financial assistance to help with some expenses related to domestic and international adoption. Eligible employees may be reimbursed for up to $8,000 per child. Eligible expenses include:
- Public or private adoption organization fees
- Foreign and international adoption fees
- Legal fees associated with the adoption legal guardianship
- Court fees
- Document translation fees
- Medical expenses (i.e. an adoptive parents’ physical exam)
- Fees associated with temporary foster care
- Reasonable travel expenses (i.e. airfare and hotels, if directly related to or necessary for adoption)
You can file for eligible expenses when a child is placed in your home for adoption, your attempt to adopt ends unsuccessfully, or your adoption is finalized. For complete program details, review this document.
Educational Assistance
Available to employees who have completed at least 12 months of continuous employment, and who are looking to further their professional and technical skills by earning a degree through an accredited college or university. Eligible employees may receive up to $7,500 (or your local equivalent) for covered expenses, reimbursed on a calendar year basis. For complete program details, review this document.