FSAs allow you to set aside a certain amount from your paycheck before taxes are taken out. Then, you can withdraw the money tax-free to pay for eligible out-of-pocket health care and dependent care expenses, such as medical expenses before meeting your plan’s deductible or day care costs for a child. Our FSAs are administered by HealthEquity.
The Health Care FSA will reimburse you for eligible health care expenses that you, your spouse, and your children incur during the plan year. When you incur an eligible expense, you can use your HealthEquity debit card and/or submit documentation for reimbursement.
Visit irs.gov for more information.
A Dependent Care FSA lets you set aside pre-tax dollars to help pay for childcare, after-school programs, and summer day camps while you work. It’s a smart way to use pre-tax dollars for care you’re already paying for.
The Health Care and Dependent Care FSAs all offer significant tax advantages, but are subject to IRS regulations:
Because FSAs are “use-it-or-lose-it” accounts, you want to accurately estimate your expenses, in order to not forfeit funds at the end of the year. HealthEquity has worksheets to help you determine your estimated health care and dependent care expenses for the year. With just a little planning, you can get a more accurate picture of your health care and dependent care needs and can better calculate how much to put into your flexible spending accounts.
Health Care FSA Tax Worksheet: learn2.healthequity.com/fbm/fsa/tax-worksheet
Want to know what’s covered? Visit IRS Publication 502 and 503 for a list of eligible FSA expenses.
Whether you need to check your balance, order a new card, or view recent transactions the HealthEquity app is your one-stop-shop to track your FSA activities. You can download the HealthEquity mobile app by visiting healthequity.com/mobile-app.
FSAs are tax-advantaged accounts that allow you to set aside pre-tax contributions to pay for eligible health care and dependent care expenses.
Pre-tax contributions are dollars you allocate toward your FSA from your paycheck before federal, FICA, and most state and local taxes are withheld. Each pre-tax dollar you contribute lowers your current taxable income, so you reduce the federal income tax and FICA tax you pay. In most cases, you’ll also pay lower state and local income taxes.
If you wish to contribute to an FSA, you must enroll during your enrollment period through the benefit system. Once, you enroll in an FSA, you will elect the amount of money to contribute to each of the accounts, up to IRS limits. Note the minimum election amount for the Health Care FSA is $60. Pre-tax dollars are then deducted from your paycheck in equal installments throughout the year. See the relevant FSA section above for maximum contribution amounts.
To continue participation in an FSA, you must re-enroll each year during Open Enrollment. Your elections and account balance do not carry over from one year to the next.
You may change your FSA contributions each year during Open Enrollment. Your plan may also allow you to change your contributions during the year if you experience a qualifying life event, such as marriage or the birth of a child.
No. IRS regulations require the accounts to operate separately. You cannot use your Health Care FSA for eligible dependent care expenses, or the reverse.
Your contributions to your FSA stop. However, until the claims filing deadline, your survivors can continue to file eligible expenses you incurred before your death.
You may use your Health Care FSA funds to pay for eligible medical expenses, such as deductibles, copays, coinsurance, prescriptions, and some over-the-counter medications, if prescribed by your doctor. For the latest information about eligible health care expenses, refer to IRS Publication 502.
You can pay for eligible expenses at the time of service with your FSA debit card. If you pay out-of-pocket, you can submit a claim for reimbursement.
Yes. You may be asked to submit supporting documentation to verify your FSA funds were used for eligible items or services.
A Dependent Care FSA allows you to set aside pre-tax dollars from your pay for eligible child and/or adult care expenses so you can work.
To estimate your future expenses, first review similar expenses you’ve had over the last couple of years. Also, consider any changes to your child and/or adult care needs which may occur during the year.
It’s important to carefully estimate your expenses before you decide how much you want to contribute to the Dependent Care FSA each year. Be conservative in your estimate since you forfeit (lose) any unused balance by the claims filing deadline. On the other hand, if your expenses exceed the amount you contribute to the FSA, you miss out on some tax savings.
Eligible Dependent Care FSA expenses include:
For the latest information about child and dependent care expenses, refer to IRS Publication 503.
You may submit claims to your FSA for eligible expenses incurred before your participation ended up until the claims filing deadline in the following year. You cannot continue to make Dependent Care FSA contributions after you leave the payroll.
