Flexible Spending Account

The FSA is a tax-exempt account established for the purpose of paying for qualified medical, dental, and vision expenses. When you use tax-free dollars to pay for certain expenses, such as healthcare, prescription drugs, eye-glasses, and childcare expenses, you realize an increase in your spending power, and substantial tax savings. Once enrolled, there is a 12 month commitment to contribute the elected amount. This plan is recommended only for active employees not retiring within the plan year.

Health Care FSA – Limit $3,200 (proposed for 2025 = $3,300)

• Used to pay for out-of-pocket eligible medical, dental and vision expenses incurred by the employee, spouse or dependents.
• Deductions for a health care FSA will not appear on your W-2 and are exempt from federal, state, and local taxes.
• Only expenses NOT reimbursed by insurance can be claimed.

Limited Purpose FSA – Limit $3,200 (proposed for 2025 = $3,300)

• Available to employees enrolled in the BlueSaver HSA medical plan.
• Allows reimbursement of expenses that are not covered under the HSA plan, such as dental and/or vision services.

Dependent Care FSA – Limit is $5,000

Eligible expenses include:

• Expenses paid to a dependent care center or provider for care of a dependent under age 13.
• Expenses paid for care of a dependent over age 13 who is physically or mentally incapable of caring for themselves.
• Expenses paid for elder care.

Important notes regarding the Flexible Spending Account Plan:

• If you have elected to have money set aside in a pre-tax FSA, changes to election amounts are not permitted until the end of the plan year (December 31) unless there is a significant change in your family status (marriage, divorce, death of a spouse, birth of a child, termination of a spouse’s employment, etc.).
• If your employment ends, reimbursement of expenses incurred your employment must be submitted within 90 days of your termination date. The IRS requires that any funds left in the account be forfeited.

Carryover Provision

The US Department of Treasury modified the “Use it or lose it” rule, allowing a carryover of up to $640 of unused WageWorks Health Care FSA funds remaining at the end of the plan year.