Flexible Spending Accounts and Health Savings Accounts

Medical FSA

  • FSA plan year: September 1, 2019 - August 31, 2020

    FSA Maximum: $2,700/year

    IRS Medical Flexible Spending Accounts (FSA) allow you to set aside pre-tax payroll deductions each paycheck to use for out-of-pocket medical, dental, and vision expenses for you and your family. During enrollment, you will estimate the amount you may need during the year. Your full annual election will be available at the start of the plan year.

    IF YOU DON'T USE IT, YOU LOSE IT!

Dependent Care FSA

  • Up to $5,000 per tax year for reimbursement or $2,500 if married/file separate tax return

    Eligible dependents must be claimed as an exemption on your tax return.

    With an IRS Dependent Care FSA, you can set aside part of your pay on pre-tax basis to use for eligible dependent care expenses. This can be used for daycare expenses for your qualifying dependents/child while you and/or your spouse are working, seeking employment, and/or attending school as a full-time student(or five months of the year). 

    • Daycare centers
    • Before/After School care
    • Mothers-Day-Out Program
    • Nursery School
    • Babysitter
    • Nanny
    • Au Pair
    • Day Camps

    **If you don't use it, you will lose it! You MUST re-enroll every year. Monies are not fronted and are available as you have it deducted from your paycheck.

Health Savings Account (HSA)

  • HSA Plan Year: September 1, 2019 - August 31, 2020

    HSA Maximum: $3,500 for self / $7,000 for family

    IMPORTANT: If you are switching from FSA to HSA during the plan year, you MUST exhaust your FSA by 08/31/2019. If not, your HSA will not be open and you must wait until the next plan year.

    HSA provides a savings vehicle that allows you to set aside money to pay for higher deductibles associated with lower monthly premium, High Deductible Health Plans(HDHP). Your HSA balance rolls over from year-to-year earning interest along the way.  Upon retirement or separation of service, you can take it with you. HSA catch-up contributions for age 55 or older is $1,000.00.

    Advantages of HSA:

    • No end-of-year forfeiture of funds
    • Portable account
    • No monthly fees
    • Interest and earnings you make on the account grow tax free
    • Distribution for eligible medical expenses are tax free

    NOTES:

    • Money is not available upfront.
    • You cannot have HSA and FSA accounts
    • HSA amounts remaining in your account roll over into the new plan year. 

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