Financial / FAQs

Vesting is a term used to describe the portion of your account balance that you are entitled to under the plan’s rules. You are always 100% vested in your contributions to the plan as well as any earnings. The Company matching and core contributions (ERC), if applicable, are 100% vested after two years of service. If you leave the Company when you have less than two years of service some or all of the Company match and ERC will be forfeited.

Loans and withdrawals are permitted in the Plan under certain conditions. Refer to the 401(k) Summary Plan Description for more details.

When it comes to investing, we know people have different goals, timetables and tolerance for risk. This is why we offer a number of investment options from which you can choose. Go to www.401k.com or call the Fidelity Retirement Benefits Line at 1-800-835-5095 for investment decision-making strategies and tools, and details about all of your options.

No. You do not need to enroll in the 401(k) Plan to receive the ERC.

The ERC is equal to a percentage of your eligible pay. This contribution, which is based on your attained age as of January 1 of each year, is paid each pay period and is fully funded by Smiths Group. You invest that money and take it out vested money when you retire or terminate employment, according to the rules of the 401(k) Plan.

Find out what you can — and can’t — pay for with an FSA here: www.irs.gov/publications/p502 (health care expenses) and www.irs.gov/publications/p503 (dependent care expenses).

You may want to compare your tax savings using the Dependent Care FSA versus the federal tax credit for child/dependent care expenses. You should consult a tax advisor to see whether, given your tax situation, it is advisable to use the FSA, the federal tax credit, or a combination of the two.

No. You can use your HSA funds as they are deposited, like a checking account. However, if you do not have enough funds to cover your eligible health care expense, as long as your HSA is open at the time you incur the eligible expense you may pay out of your pocket and reimburse yourself when your HSA funds have accumulated.

No, because medical insurance premiums are generally not considered to be an eligible medical expense for either the HSA or the Health Care FSA. See IRS publication 502 for a complete list of eligible expenses.

If you are under age 65, you will incur a 20% penalty in addition to income tax that is payable.

For your HSA, you can generally stop, start or change your contributions at any time by contacting the Smiths Group Benefits Center.                                                    For a FSA, you can only make changes during Open Enrollment or within 30 days of a life event (marriage, birth, adoption, divorce, etc.)

When you enroll in Medicare, you may continue to use your HSA balance for eligible health care expenses. However, once enrolled in Medicare, you will no longer be eligible to contribute to your HSA and Smiths Group will not make contributions to your HSA either. “Medicare” includes Parts A, B and D, Medicare Advantage Plans, Medicare Supplemental Insurance and Medigap.