Flexible Spending Accounts (FSA)
Flexible Spending Accounts (FSAs) allow you to set aside a portion of your pay on a pre-tax basis to pay for eligible health, dental, vision, child care and elder care expenses. The money you contribute to these plans reduces your taxable income, thereby reducing your taxes.
Effective January 1, 2017 we are changing our Third-Party Benefit Administrator from Crosby Benefits to EBPA. The impact of this change and how it may affect you is detailed below.
2016 Flexible Spending Accounts (FSA): Crosby Benefits will process reimbursements for expenses incurred in 2016.
- Any 2016 expenses must be submitted to Crosby Benefits on or before April 30, 2017.
- After April 30, 2017, any unused 2016 Health Care FSA funds (up to the $500 maximum) will be carried over for your use in 2017. These funds will be available to you on an EBPA debit card by May 30, 2017.
- For Dependent Care FSA, any unused 2016 funds as of April 30, 2017 will be forfeited.
2017 Flexible Spending Accounts (FSA): EBPA will process reimbursements for expenses incurred in 2017. You may elect any amount up to:
- $2,600 per calendar year for the Health Care FSA
- $5,000 per calendar year for the Dependent Care FSA
Once you are enrolled in a 2017 Health Care and/or Dependent Care FSA, you will receive an EBPA Benefits Debit Card in your EBPA welcome packet.
NOTE: If you are also enrolled in the 2017 Commuter benefit the same EBPA Benefits Debit Card will be used for Flexible Spending Accounts. If additional cards are required for your family members, please contact EBPA at (800) 258 7298.
- Each year, participants must re-enroll in the Health Care and Dependent Care FSAs during the open enrollment period.
- The FSA is a “use it or lose it benefit”, with the exception of the $500 carryover amount described below for health care expenses. Be cautious when selecting annual contribution amounts for health care and/or dependent care expenses.
- IRS guidelines permit employees to carryover $500 of any amount remaining unused in your Health Care FSA contributions to the following plan year. The amount carried over will not count against the $2,600 limit for the following year. Unused amounts in excess of $500 are forfeited under the “use it or lose it” rule described above.
- The IRS allows employees additional time after the calendar year ends (up to April 30th) to submit requests for eligible expense incurred during the prior calendar year.
- If you set aside a portion of your pay for Dependent Care services for children, you will be required to verify that your child(ren) is/are under age 13.