Flexible Spending Accounts (FSA)
ASI
What is a Flexible Spending Account (FSA)? We partner with ASI to pay for out-of-pocket medical, prescription, dental, vision, and dependent day care expenses with pre- tax dollars through Flexible Spending Accounts (FSA). You must enroll/re-enroll annually during open enrollment to participate for the following calendar year. Contributions to your FSA come out of your paycheck before any taxes are taken out. This means that you don’t pay federal income tax, social security taxes, or state and local income taxes on the portion of your paycheck you contribute to your FSA. You should contribute the amount of money you expect to pay out of pocket for eligible expenses for the plan period. Participants can order a debit card for the Health Care Flexible Spending Account by completing the “FSA Debit Card Application” located under Employee Benefits on the USD259 website or in the library on the bswift benefit portal.
The Two Types of FSAs:
Health Care FSA You can use money set aside in your Health Care FSA for eligible medical, dental, and vision expenses incurred by you, your spouse, or your taxable dependents. Great examples of this include copays, and deductibles. Cosmetic medical expenses, such as facelifts or hair removal, are not eligible. Remember to keep your receipts and/ or other documentation in case it is needed to verify the medical expense. Some items may require additional documentation from your medical provider.
Dependent Day Care FSA In order for dependent care services to be eligible, they must be for the care of a taxable dependent under the age of 13 who lives with you or for a taxable dependent who is incapable of caring for himself or herself. The care must be needed so that you and your spouse (if applicable) can go to work. Because of this, care must be given during normal working hours and cannot be provided by another of your dependents.
The maximum amount you can contribute is $2,850 per year
The maximum amount you can contribute is $5,000 per year, depending on your marital and tax-filing status.
FSA Frequently Asked Questions
Do I need to keep any records when I use my FSA? To be compliant with the IRS guidelines, your FSA administrator may ask for an itemized receipt or Explanation of Benefits to validate claims. When is the FSA money deposited? Your entire election is available on the first day beginning the plan. The election amount will be contributed through even payroll deductions throughout the plan year. What if I do not use all of the FSA money by the end of the year? FSA funds abide by the “use-it-or-lose it” rule. All unused FSA money in excess of a $570 rollover amount will be forfeited for the Health Care FSA. For the Dependent Care FSA, any balance not used by the deadline will be forfeited.
Employee Benefits Guide - 21
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