I get this idea from my medicine bottle cap, the tips here show you how you can use extrude up to the face function.
1. Click New 
, Click Part 
and OK.
2. Click on Top Plane and click Sketch.
3. Click Circle 
and sketch start at Origin, click Smart Dimension 
and dimension the circle as 1.0in diameter.
4. Click Features>Extrude Boss/Base 
set the D1 to 0.5in
and 
.
5. Click Fillet 
, set fillet size as 0.1in, select top face of the part
and .
6. Turn the part to view bottom side, set D1 as 0.05in, click Shell 
, select bottom face
and .
7. Click Isometric View 
, click on Front Plane
and click on Reference Geometry>Plane.
Set distance to 0.65in
and .
8. Click Plane1 and click Sketch.
9. Click Rectangle 
, sketch on Plane1 as sketched below and use Smart Dimension for your dimensioning.
10. Click Features>Extrude Boss/Base set the Up To Surface
and .
11. Click Fillet , set fillet size as 0.1in, select side edge of the lid.
and .
12. And you’re done!
