FSA (Flexible Spending Account)
Flexible Spending Accounts
Using a Flexible Spending Account (FSA) is great way to stretch your benefit dollars. You use before-tax dollars in your FSA to reimburse yourself for eligible out-of-pocket medical and dependent care expenses. That means you can enjoy tax savings and increased take-home pay—all with the convenience of a prepaid benefits card. Plus you can rollover $500 from one year to the next, reducing your risk of losing dollars at the end of the plan year.
WHAT IS AN FSA?
FSA dollars can be used during the plan year to pay for qualified expenses and services.
- With an FSA, you elect to have your annual contribution (up to the $2,650 limit set by the IRS) deducted from your paycheck each pay period, in equal installments throughout the year, until you reach the yearly maximum you have specified.
- The amount of your pay that goes into an FSA will not count as taxable income, so you will have immediate tax savings.
- A Healthcare FSA allows reimbursement of qualifying out-of-pocket medical expenses.
- A Limited Purpose Medical FSA works with a qualified high deductible health plan (HDHP) and Health Savings Account (HSA). A limited FSA only allows reimbursement for vision and dental expenses.
- • A Dependent Care FSA allows reimbursement of dependent care expenses, such as daycare) incurred by eligible dependents.
WITH AN FSA YOU CAN:
An FSA is a great way to pay for expenses with pre-tax dollars.
- Enjoy significant tax savings with pre-tax deductible contributions and tax-free reimbursements for qualified plan expenses.
- Quickly and easily access funds using the prepaid benefits card at point of sale, or request to have funds directly deposited to your bank account via online or mobile app.
- Reduce filing hassles and paperwork by using your prepaid benefits card.
- Enjoy secure access to accounts using a convenient Consumer Portal available 24/7/365.
- Manage your FSA “on the go” with an easy-to-use mobile app
- File claims easily online (when required) and let the system determine approval based on eligibility and availability of funds.
- Stay up to date on balances and action required with automated email alert and convenient portal and mobile home page messages.
- Get one-click answers to benefits questions.
- Use it or Roll It Over. And now up to $500 of your unused healthcare Flexible Spending Account balance can be carried over into the next plan year instead of you “losing it” – making enrollment in an FSA much less risky. This gives you more flexibility to spend your FSA money when you need it. You can use it for necessary out-of-pocket healthcare expenses, rather than feeling pressured to engage in last minute and potentially unnecessary spending at the end of the year.