Flexible Spending Accounts
A "Section 125 Cafeteria Plan", often referred to as a Flexible Spending Account (FSA), is a valuable employee benefit that allows you to have pre-tax dollars withheld from your paycheck to pay for eligible health care and/or dependent care expenses. It covers not just your expenses, but also those of your spouse and dependents. These expenses may include out-of-pocket medical costs, co-insurance amounts and dependent day care. The Flexible Spending Accounts (FSA) Plan provides three options: Flexible Spending, Limited Flexible Spending, and Dependent Care accounts.
OPTION 1: HEALTH CARE FLEXIBLE SPENDING ACCOUNT (FSA)
OPEN TO NON-HDHP HSA MEDICAL INSURANCE PARTICIPANTS ONLY
Health care expenses incurred by you or an eligible family member that are not covered by the Health Plan for medical, dental and vision benefits, may be reimbursable through your FSA account. You may elect to contribute up to $2750 pre-tax dollars per calendar year for eligible medical, dental, and vision expenses.
For a detailed listing of eligible healthcare expenses, or to review the Flexible Benefits Summary Plan please click on the links below:
OPTION 2 : LIMITED FSA PLAN (LTD FSA)
OPEN TO HDHP HSA MEDICAL INSURANCE/ HSA ACCOUNT PARTICIPANTS ONLY
Limited Flexible Spending Accounts (Ltd FSA) are available only to those enrolled in a high-deductible health plan and an HSA account. A limited-purpose FSA lets you use pre-tax dollars to pay for qualified dental and vision expenses, such as dental cleanings, fillings, vision exams, contact lenses, lens solution/cleaner, and prescription glasses .
Under current IRS rules, you cannot deposit money into an HSA if you participate in a standard healthcare FSA. However, because an LPFSA restricts reimbursements to specific dental and vision care expenses, the IRS allows you to participate in both an LPFSA and an HSA at the same time. By having both accounts, you can maximize your tax and savings benefits. When coordinated with an HSA, the LPFSA can further reduce your taxes while allowing you to allocate HSA funds to other purposes . For additional information, please click the link below:
Link: Limited FSA Plan
OPTION 3: DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (FSA)
Dependent Care Reimbursement Account, you may be reimbursed for eligible expenses incurred by you for the care of your child, disabled spouse, elderly parent, or other dependent that is physically or mentally incapable of self-care, so that you (and your spouse) can work or actively look for work. For additional information, please refer to the Flexible Benefits Summary Plan Description or the Dependent Care FSA Information document by clicking the links below:
Link: Dependent Care FSA Info
"BENNY" CARD PAYMENTS FOR FSA EXPENDITURES
All participants are provided with a FSA debit card, or "Benny Card" that simplifies the reimbursement process. By using the Benny (debit) Card to pay for qualified healthcare expenses, such as co-pays and prescriptions drugs at the point-of-service, an employee eliminates endless paperwork and wait time for reimbursement. "Benny Card" payments will deduct payments from your FSA account. You are, however, required to keep your receipts as documentation in the event of an IRS audit. For further information regarding payment by "Benny Card" debit card please click on the following link:
2021 IRS CONTRIBUTION LIMITS FOR FLEXIBLE SPENDING ACCOUNT (FSA)
FLEXIBLE SPENDING ACCOUNT: $2750.00 annually, or $105.77 bi-weekly, 2020 IRS limits
LIMITED FLEXIBLE SPENDING ACCOUNT: $2750.00 annually, or $105.77 bi-weekly, 2020 IRS limits
DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT: $5000.00 annually, or $192.31 bi-weekly, 2020 IRS limits
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For additional information: