Uncategorized
Flexible Spending Account (FSA)How It Works
Healthcare FSA
A Healthcare FSA is used to pay for eligible medical expenses which are not covered by your insurance or other plan. These expenses can be incurred by you, your spouse, a qualifying child, or relative. Your full annual contribution amount is available at the beginning of the plan year, so you don’t have to wait for the money to accumulate. You can use your PayFlex debit card to pay for eligible expenses.
The PayFlex debit card is a convenient way to pay for eligible Healthcare expenses.
The card knows when the expense is eligible and whether you have funds available. When you use the card, save your Explanation of Benefits, itemized statements and detailed receipts. There may be times when PayFlex asks you to provide documentation to verify you used your card for an eligible expense. If you’re a new Healthcare FSA member, you’ll automatically receive one card in the mail before the beginning of the plan year. The card is not available for the Dependent Care FSA.
Note: Funds are not allowed to be used to help pay for or towards any Medical premiums incurred.
Dependent Care FSA
The Dependent Care FSA is a great way to pay for eligible dependent care expenses, such as before and after school care, day time baby-sitting fees, elder care services, and preschool costs. Eligible dependents include your qualifying child up to age 13, spouse and/or relative. Your full annual contribution is not available at the beginning of the plan year. You can only get reimbursed up to the amount that is available in your account.
Annual Contribution Limits For Healthcare FSA:
- Minimum Annual Contribution: $250
- Maximum Annual Contribution: $2,900
For Dependent Care FSA:
- Minimum Annual Contribution: $250
The maximum contribution depends on your tax filing status.
Determine Your Maximum Contribution Based On Your Tax Filing Status
- If you are married and filing separately, your maximum annual contribution is $2,500 for each person
- If you are single and head of household, your maximum annual contribution is $5,000
- If you are married and filing jointly, your maximum annual contribution is $5,000
- If either you or your spouse earn less than $5,000 a year, your maximum annual contribution is equal to the lower of the two incomes
- If your spouse is a full-time student or incapable of self-care, your maximum annual contribution is $3,000 a year for one dependent and $5,000 a year for two or more dependents
Run-out period
You have a 120-day run-out period (ending March 31 of the year following the current plan year) after your current plan year ends to submit reimbursement requests for all eligible FSA expenses incurred DURING your plan year. For example, if your plan year is 2022, then your run-out period would end on March 31, 2023.
Plan for your FSA savings
Worksheets will help you calculate the amount you expect to pay during the plan year for eligible, uninsured out-of-pocket medical and/or dependent care expenses.