Flexible Spending Account (FSA)
Flexible Spending Accounts (FSAs) let you set aside tax-free dollars (subject to IRS limits) to pay for a wide range of out-of-pocket health care and dependent care expenses. You use this money to reimburse yourself for eligible expenses you incur in a calendar year.
Health Care FSA
Use the Health Care FSA to pay for many out-of-pocket health care expenses for yourself (or any dependent you claim on your federal income tax return) that are not covered or paid in full by your medical, dental, or vision plans. Your total annual amount is available on the first day of the plan year to cover eligible healthcare expenses. If you enroll in an HSA, you are NOT eligible to participate in the Health Care FSA.
Dependent Care Flexible Spending
The Dependent Care FSA lets you pay for eligible expenses for supervised day care, nursery school, summer day camp or elder services. Eligible dependents include children under age 13 who live with you and who you claim as dependents on your federal income tax return; or, anyone age 13 or older who lives with you at least eight hours-a-day, depends on you for support, and needs supervised care, such as an elderly parent. This account is NOT used for dependent child/ elder health care related expenses.
Contributions made into the Dependent Care FSA may be subject to change during the plan year due to IRS regulated testing. You will be contacted in advance if your contribution needs to be reduced. We know this can be frustrating and we will work to notify you as quickly as possible.
The IRS mandates all FSA eligible expenses must be claimed by March 31st of the following year. Any unclaimed money will be forfeited to cover plan administration expenses and will not be returned to you.
CONTRIBUTIONS
* If you are married and your spouse has a separate dependent care account the combined total of your contributions cannot exceed $5,000 (if you file separate tax returns, you can contribute up to $2,500) and you cannot contribute more than your income or your spouse’s, whichever is lower. Expenses will only be reimbursed up to the amount of your account balance when you file a claim
ELIGIBLE AND INELIGIBLE FSA EXPENSES
