Tax-Advantaged Accounts

NMSU offers several tax-advantaged accounts that allow benefit-eligible employees to pay for eligible healthcare and dependent care expenses using pre-tax dollars. The account(s) available to you depend on your medical plan enrollment and eligibility.

Eligibility

The Tax-Advantaged Accounts described on this page are available to regular status employees, and non-regular term appointment employees hired at or above .75 FTE. Some accounts have additional IRS eligibility requirements. Refer to the specific account page for details.

Eligible expenses may only be incurred for individuals who qualify as eligible tax dependents under IRS rules.

Why Consider a Tax-Advantaged Account?

Tax-advantaged accounts allow you to pay for eligible healthcare and dependent care expenses using pre-tax dollars, which may reduce your taxable income and increase your take-home pay.

Depending on the account type, funds may be used for expenses such as:

Medical, dental, and vision expenses
Prescription medications
Childcare and dependent care expenses

These accounts can help employees budget for expected expenses while providing potential tax savings.

2026-2027 McGriff Presentation

McGriff Insurance Services, Inc
800-768-4873 or 1-800-930-2441

Quick reference table comparing the features of the different tax-advantage accounts.
Feature	HSA	LPFSA	Healthcare FSA	Dependent Care FSA
Best For	Long-term healthcare savings	HSA participants needing dental/vision coverage	Predictable medical expenses	Child/elder care expenses
Requires HDHP Enrollment	Yes	Yes	No	No
Can Be Used With HSA	N/A	Yes	No	Yes
Covers Medical Expenses	Yes	No	No	Yes
Covers Dental/Vision	Yes	Yes	Yes	No
Covers Dependent Care	No	No	No	Yes
Employer/Employee Contributions	Employee	Employee	Employee	Employee
Portable if You Leave NMSU	Yes	COBRA for remaining plan year	COBRA for remaining plan year	No
Funds Roll Over	Yes	Up to IRS maximum carryover	Up to IRS maximum carryover	No
Investment Option	Yes, after $2,000 balance	No	No	No
Mid-Year Changes Without Qualifying Event	Yes	No	No	No
Access to Funds	Available as contributions are deposited	Full annual election available at start of plan year	Full annual election available at start of plan year	Available as contributions are deposited

Explore Each Account

Health Savings Account

For employees enrolled in HDHP who want long-term healthcare savings and tax advantages.

Learn More About HSA

Healthcare Flexible Spending Account

For employees who want to budget for eligible medical expenses using pre-tax dollars.

Learn more about Healthcare FSA

Limited Purpose Flexible Spending Account (LPFSA)

For HSA participants who want to use pre-tax dollars for dental and vision expenses.

Learn More About LPFSA

Dependent Care Flexible Spending Account

For employees with eligible childcare or dependent care expenses.

Learn More About Dependent Care FSA