There are two types of FSA accounts: Healthcare and Dependent Care. There is no cost to participate in this pre-tax benefit. You determine your contribution to the plan(s) each plan year. The elected amount will be taken from your paycheck in 24 equal amounts throughout the year. All contributions are deducted from your pay on a pre-tax basis.
Previously this benefit had a “use it or lose it” clause; but the IRS changed the guideline to allow a maximum carryover of $640 to the next plan year under the healthcare FSA account. However, carryover is not permitted for the dependent care accounts.
Once you have enrolled in the FSA, changes are only permitted for events such as marital status, birth/adoption, or employment status.
HEALTHCARE ACCOUNTS
The Healthcare FSA is used to cover medical expenses that are not covered by insurance. Maximum allowed per year per person for 2024 is $3,200. Our insurance is extensive, but there are still expenses not covered.
DEPENDENT CARE ACCOUNTS
You can use pre-tax dollars to care for your child, disabled spouse, elderly parents or other dependents that are physically or mentally incapable of self-care.
- Dependent care expenses must be used for care of dependent so you or your spouse can work, look for work, or attend school full-time.
- Maximum benefit per year is $5,000 per family
- Dependent children must be under the age of 13 to qualify
- Spouses who are disabled must live in the household for over six months
- Disabled dependents must live in the household for over six months and claimed as an exemption.
