Flexible Savings Account

What is an FSA?
A Flexible Spending Account allows for money to be set aside to pay for certain out-of-pocket healthcare expenses that you and your dependents may incur on a Plan Year basis. You do not pay taxes on the money you contribute to the account so you will save the amount equal to the taxes you would have normally paid on that income. There are two primary types of accounts that you can open: a Traditional Health Care Spending Account and a Limited Health Care Spending Account, which restricts your spending to only vision and dental expenses. In addition to these two primary account types, there is an option to elect a Dependent Care FSA, which enables you to pay for out-of-pocket dependent day-care costs. All claims must be submitted no later than 90 days after the end of the Plan Year.

Please note that elections cannot be changed throughout the year except for certain limited qualifying events. It’s important to plan your expenses carefully each year as the funds are use-it-or-lose-it. The carryover provision is in place for the Healthcare FSA. This allows unused money at the end of the year (up to $640) to be carried over to the new plan year to be used throughout the entire year. The carryover amount is not subject to the use-it-or-lose it rules and will simply be added to your new plan year elections. To enroll, complete the enrollment form and return to HR.