Flexible Spending Account Contribution Limits & IRS Regulations
The IRS sets the maximum dollar amount you can elect and contribute to a medical FSA. The annual contribution limit is $ 3, 200 . We recommend reviewing how much you spend on eligible healthcare expenses every year to determine how much to elect.
Funds on day 1 All of your FSA dollars are available on the very first day of the plan year. For example, if you choose to contribute $1,200 to your FSA, your contributions will be deducted evenly across all of your paychecks for the year, but you have access to all $1,200 on day 1! You can use your funds for expenses incurred by you, your spouse or eligible dependents.
Use-or-lose Don’t forget to spend your FSA dollars. You will forfeit any money left in your account at the end of the plan year. (Check with your employer to confirm how many days you have to submit claims for reimbursement after the plan year ends.)
Changing your FSA election In order to make changes to your election after open enrollment, you need to experience a qualifying life event. These events include:
• Change in marital status • Change in the number of dependents • Increase due to birth, adoption or marriage • Decrease due to death, divorce or loss of eligibility
• Gain or loss of eligibility due to a change in participant, spouse or dependent employment status
If you experience a qualifying life event, contact your employer to make changes to your election.
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