DEPENDENT CARE REIMBURSEMENT FSA
Flexible spending accounts (FSA) provide you with an important tax advantage that can help you pay health care and dependent care expenses on a pre-tax basis. As an eligible employee, you can set aside a portion of your pre-tax salary in an account, and that money is deducted from your paycheck over the course of the year. The amount you contribute to the FSA is not subject to social security (FICA), federal, state or local income taxes – effectively adjusting your annual taxable salary.
The Dependent Care Reimbursement FSA allows you to use pre-tax dollars toward qualified dependent care. Care must be for a tax-dependent child under age 13 who lives with you, or a tax-dependent spouse or child who lives with you and is incapable of caring for themselves. Also, the care must be needed so that you and your spouse (if applicable) can go to work. Care must be given during normal working hours and cannot be provided by another one of your dependents. Typical expenses include baby- sitters, nursery schools, pre-schools, and day care centers.
HEALTH CARE REIMBURSEMENT FSA
The Health Care Reimbursement FSA allows you to pay for certain IRS-approved health care expenses not covered by your insurance or reimbursed by any other benefit plan. Eligible expenses include those incurred by you, as well as your spouse and/or dependents. Typical expenses include co- pays, coinsurance, deductibles, and prescription drug expenses. For more information about eligible expenses, please refer to IRS Publication 502 available at www.irs.gov/pub/irs-pdf/p502.pdf or go to www.fsastore.com The 2024 annual maximum contribution to the Health Care Flexible Spending Account is $3,200, with a rollover limit of $640
The 2024 annual maximum contribution to the Dependent Care Reimbursement FSA is $5,000
FSA - “USE IT OR LOSE IT” RULE Healthcare HSA and Dependent Care FSA account runs on a plan year basis. The current plan year is from January 1, 2024 through December 31, 2024; claims can only be for services/expenses incurred between January 1, 2024 through December 31, 2024
The FSA and DCFSA plan year will run from January 1, 2024 through December 31, 2024
Participants MUST re-enroll in the FSA Accounts each year
COMMUTER ACCOUNTS ▪
Flex Transit is a monthly election. Employees can change their pre-tax deductions at anytime during the plan year, based on their current month’s expenses. Unused funds roll over into the next year provided they stay enrolled in the plan. ▪ Save on your commute by contributing pretax dollars towards transit expenses. These plans are administered by HealthEquity, and funds can be accessed via your FSA card.
The 2024 monthly maximum contribution to Transit and Parking FSA accounts is $315. Totaling $600/per month for both .
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