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.
For calendar year 2016, you may set aside up to:
- $2,550 per calendar year for health care expenses
- $5,000 per calendar year for dependent care expenses
Once enrolled in a Health Care and/or Dependent Care FSA Account for the 2016 calendar year, you will be sent a letter from Crosby Benefit Systems, Inc., which will provide information on how to set up an on-line account and use the Health Care Flex Debit Card.
If enrolling for the first time in the Health Care FSA, you will receive one debit card. If previously enrolled, please keep your current debit card, as it will be electronically updated with your new 2016 election. If additional cards are required for your family members, please contact Crosby Benefit Systems, Inc. at (800) 462-2235.
- 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 rollover 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 carry over $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 $2,550 limit for the following year. The unused amounts that are rolled over into the next plan year must be used to pay for or reimburse eligible health care expenses. They may not be cashed out or applied towards any other benefit offered under the cafeteria plan. 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 expenses incurred during the prior calendar year.
- If you set aside a portion of your pay for Dependent Care (daycare) services for children, you will be required to verify that your child(ren) is/are under age 13.