Flexible Spending Account (FSA/LPFSA)
Flexible Spending Account
A Flexible Spending Account, or FSA, is an important part of our benefit package. The FSA is an account that allows you to reimburse yourself with pretax dollars for eligible out-of-pocket health care costs and/or the day care costs associated with caring for a qualified dependent.
The FSA plan year runs from September 1st through August 31st. Claims incurred in the plan year may be submitted for reimbursement up to 90 days after the end of the plan year.
A rollover provision allows employees to roll over up to $500 of unused FSA dollars into the next plan year and still contribute up to $2,600. Please plan your contributions carefully. Any money remaining in your account in excess of $500 at the end of the plan year will be forfeited.
This is known as the “use it or lose it” rule and it is governed by IRS regulations. Note that FSA elections do not automatically continue from year to year; you must actively enroll each year.
You can participate in the FSA even if you don’t participate in the health plan. You may not participate in the Medical FSA if you are enrolled in the Health Savings Account option.
Dependent Care Flex
An employee may elect up to $5,000 per plan year for reimbursable dependent care expenses. This also is subject to the use it or lose it rule. If your spouse is also electing dependent care through their Flexible Spend Account you may not exceed a total of $5,000 per tax year.