Flexible Spending Accounts

To help you pay for certain expenses using pretax dollars, you can participate in a Flexible Spending Account (FSA). There are three types of FSAs —the Health Care FSA,  the Dependent Care FSA, and the Limited Purpose Health Care FSA. Note: If you are a participant in an HSA, you are not eligible for the Health Care FSA reimbursement account; instead, you may participate in a Limited Purpose Health Care FSA.

Health Care FSA or Limited Purpose Health Care FSA Claims Filing Extension

Health Care FSA runout example. The deadline to submit claims is normally 90 days after the end of the plan year (for example. March 31st).

Questions?

If you have questions, contact PayFlex at (800) 284-4885 or www.payflex.com.

Health Care FSA

You may enroll in a Health Care FSA as long as you aren’t enrolled in the CDHP, which offers the Health Savings Account (HSA) instead.

If you enroll, you can use the funds in your Health Care FSA to pay for eligible expenses like deductibles, copays, and coinsurance for you and your eligible dependents. You can contribute from $125 to $3,200 (IRS maximum) for 2024*. Be sure to plan your payroll contributions to coincide with expenses you will incur during the year.

You can roll over up to $640 in unused funds to the next plan year. Carryovers for the Health Care FSA are limited to one plan year, so any carryover funds from 2023 will only be available until the end of 2024*. You should still calculate your expected expenses carefully, because any funds over $640 that you don’t use during the plan year will be forfeited. The Health Care FSA is designed to help pay for eligible out-of-pocket health care expenses. You will receive a debit card which will allow you to access funds from your Health Care FSA, if you choose to use one. You can use your debit card if the funds are available. Please note: You can only use the debit card does not apply to the Dependent Care FSA.

*These values are subject to change once IRS releases their 2024 limits.

Limited Purpose Health Care FSA

If you are enrolled in the Select Plus HSA Compatible CDHP plan, you are eligible for the Limited Purpose Health Care FSA. The Limited Purpose Health Care FSA works the same way as the standard Health Care FSA: contributions are pretax, funds are “use it or lose it”, and expenses must occur within the plan year. However, with the Limited Purpose Health Care FSA, you can only submit claims for eligible vision and dental expenses. You can contribute from $125 to $3,200 (IRS maximum) for 2024*. You have until March 1, 2025 to submit Limited Purpose Health Care FSA claims for the expenses incurred between January 1 and December 31, 2024. You can roll over up to $640 in unused funds to the next plan year. Carryovers for the Limited Purpose Health Care FSA are limited to one plan year, so any carryover funds from 2023 will only be available until the end of 2024. You should still calculate your expected expenses carefully, because any funds over $640 that you don’t use during the plan year will be forfeited.

*These values are subject to change once IRS releases their 2024 limits.

Dependent Care FSA

The Dependent Care FSA sets aside pre-tax funds to help pay for expenses associated with caring for elder or child dependents. Unlike the Health Care FSA, reimbursement from your Dependent Care FSA is limited to the total amount that is deposited in your account at that time. You can incur expenses to be reimbursed from your 2024 Dependent Care FSA until March 15, 2025. The deadline for submitting a claim for reimbursement of 2024 Dependent Care FSA eligible expenses is May 15, 2025.

Eligible Dependents

An eligible dependent is a person who shares a primary place of residence with you for more than six months each year and is

  • your child under age 13 whom you can claim as a dependent on your federal income tax return;
  • your spouse who is mentally or physically disabled; or
  • your dependent who is mentally or physically disabled and whom you can claim on your federal income tax return.

In most cases, your domestic partner and children of your domestic partner are not considered eligible dependents for purposes of your Dependent Care FSA.

Edit
Account Type Eligible Expenses Annual Contribution Limits
Health Care FSA Most medical, dental and vision care expenses that are not covered by your health plan (such as copayments, coinsurance, deductibles, eyeglasses and doctor-prescribed over-the-counter medications) Maximum contribution is $3,050 for 2024 calendar year.*
Limited Purpose Health Care FSA You can submit claims for eligible vision and dental expenses Maximum contribution is $3,050 for 2024 calendar year.*
Dependent Care FSA Dependent care expenses (such as day care, after-school programs or elder care programs) so you and your spouse can work or attend school full-time Maximum contribution is $5,000 per year ($2,500 if married and filing separate tax returns).*

If you do not spend all the money in your FSA by the deadline, IRS regulations state that it cannot be reimbursed to you as regular pay because it was taken in pretax dollars. As a result, any unused dollars in your FSA(s) after the deadline will be forfeited.

*These values are subject to change once IRS releases their 2024 limits.

FSAs Help You Save On Your Taxes

Here’s an example of how much you can save when you use the FSAs to pay for your predictable health care and dependent care expenses.

Account TypeWith FSAWithout FSA
Your taxable income$50,000$50,000
Pretax contribution to Health Care FSA and Dependent Care FSA$2,000$0
Federal and Social Security taxes$11,701$12,355
After-tax dollars spent on eligible expenses$0$2,000
Spendable income after expenses and taxes$36,299$35,645
Tax savings with the Health Care and Dependent Care FSAs$654N/A