Flexible Spending Account
Employee benefit package allows employees to participate in a Flexible Spending Account (FSA). The FSA is administered by Voya. An FSA is a pretax benefit allowable under Internal Revenue Code (IRC) Section 125. The plan allows eligible employees to set aside a specific pretax dollar amount for the medical, dental, vision, orthodontia and dependent care expenses. If you have predictable out-of-pocket expenses, you may want to consider opening an FSA. Employees are eligible to participate in an FSA on the 1st of the month following date of hire.
With the Health Care FSA, the participant’s elected annual goal amount is available on day one of the plan year. For the Dependent Care FSA unlike the Health Care FSA, the funds are made available as they are contributed through payroll deductions.
TYPES OF FSA’S:
- Medical FSA’s can be elected if you are NOT participating in a High deductible plan and can be used for eligible medical, dental, vision and orthodontia expenses.
- Examples include:
- Office visit Co-pays
- Deductibles
- Prescription eyeglasses or contact lenses Dental Cleanings
- Examples include:
- Dependent Care Account can be used for childcare expenses for a claimed
dependent.- Examples include:
- Day care center or babysitter
- Examples include:
The IRS Annual Contribution Limits for the 2024 plan year are:
- Medical: $3,250
- Dependent Care: $5,000
RESOURCES
Use-it or lose is the IRS requirement that if you do not spend the money you elected in your account, the money remaining in the FSA after March 31, 2024 of the following year will be forfeited because it cannot be rolled over or refunded to you.
