FLEXIBLE SPENDING ACCOUNT (FSA) Flexible spending accounts (FSAs) let you set aside some of your pay, pre-tax, into an account to pay for certain predictable expenses. THERE ARE TWO TYPES OF FSA: • The health care FSA can pay for copays, deductibles, coinsurance, prescriptions, dental care, glasses, and other eligible health-related expenses for you and your tax dependents. Available to THP members or associates who waive coverage
HERE’S HOW EACH FSA WORKS: • Make contributions. You set aside pre-tax money through payroll deductions up to IRS limits. You can’t change your contribution during the year unless you experience a qualifying life event. You must re-enroll every year. ■ HCFSA limit: $5 weekly minimum, $3,200 annual maximum ■ DCFSA limit: $5 per week minimum, $5,000 annual maximum per household • Use your funds. View a full list of eligible expenses at wexinc.com/insights/benefits-toolkit/eligible- expenses/ . When you have an expense, you can pay for it with your FSA debit card or reimburse yourself. The full contribution you elect is available for access or reimbursement on your first day of enrollment on your health care FSA and as you contribute them (like a bank account) on your dependent care FSA. • Budget carefully. The health care FSA can roll over up to $640 each year, but all other funds and all excess dependent care funds are lost at the end of the plan year. To keep your rolled over funds, you must re-enroll in the health care FSA plan year.
• The dependent care FSA covers childcare expenses while you are at work for children under age 13 or older dependents who are incapable of self-care. That includes costs for things like babysitters, summer day camps, and elder care. Available to all associates
RUN THAT BACK THIS SOUNDS LIKE THE HSA. HOW IS IT DIFFERENT? Both are tax-advantaged accounts. The HSA is the tax-advantaged account offered to associates who elect the HDHP medical plan. It has advantages over the FSA — you keep the account for life, it accrues interest and funds can be invested. But if you don’t think the HDHP is the right plan for you, a health care FSA is a great way to budget for medical expenses in the coming year and pay for them with tax-free dollars.
Keep your receipts, as the IRS may ask you to submit them for verification.
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