Flexible Spending Accounts
Health Care FSA A Health Care Flexible Spending Account (FSA) provides you with the ability to save money on a pre-tax basis to pay for any IRS-allowed health expense that is not covered by your health care plan. Examples of these types of expenses include deductibles, co payments, coinsurance payments and uninsured dental and vision care expenses. You may elect a specific annual contribution for each FSA in which you plan to participate. Your annual contribution is then divided by your number of pay periods and that amount will be deducted pre-tax each pay period. The amount you elect may not be changed or revoked during the plan year unless you experience a qualifying life event. Also, you may not transfer funds between a Health Care FSA and a Dependent Care FSA. If you elected to participate in an FSA account last year, you must enroll again and specify your annual contribution if you wish to participate in the upcoming plan year. Your previous elections will not carry over to the new plan year. For the 2023 plan year, the maximum amount that you may contribute to aHealth Care FSA is $3,050. Members will have a grace period that extends 2 ½ months after the end of the plan year. Dependent Care FSA A Dependent Care Flexible Spending Account (FSA) provides you with the ability to set aside money on a pre- tax basis for day care expenses for your child, disabled parent or spouse. Generally, expenses will qualify for reimbursement if they are the result of care for:
• Your children, under the age of 13, for whom you are entitled to a personal exemption on your Federal income tax return. • Your spouse or other dependent, including parents, who are physically or mentally incapable of self-care.
The IRS has set the maximum allowable contribution per calendar year for a Dependent Care Flexible Spending Account as follows:
• $5,000 for a married couple filing jointly • $2,500 for a married couple filing separate
Health Care FSA Debit Card Employees enrolled in a health care FSA will receive a benefits debit card, which allows you to access your FSA account to pay for eligible expenses immediately and conveniently at point of service. Be sure to save your receipts as you may be audited or will need to submit proof of qualified expenses. Commuter Benefits Transportation and Parking Spending Accounts allow employees to use money on a pre-tax basis to pay for qualified work- related commuting and parking expenses. For 2024, the IRS limit is $315 pre-tax per month. 20
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