Using Your FSA
Using Flexible Spending Accounts is one of the easiest ways to reduce your healthcare and dependent care costs, as these accounts allow you to use pre-tax dollars to pay for eligible healthcare and dependent care expenses. When you pay for eligible expenses with tax-free dollars, you reduce your taxable income and thus put more money back in your pocket.
There are three types of Flexible Spending Accounts available to you:
- The Healthcare FSA can save you money on eligible healthcare, prescription drug, dental or vision expenses.
- The Dependent Care FSA can save you money on eligible dependent care expenses you pay while you’re at work. These include day care and summer camps for children under age 13 and care for an elderly parent.
- The Limited Purpose FSA is available to employees with an HSA who are enrolled in the HSA Open Access POS healthcare plan, and can be used in addition to an HSA to pay for dental and vision expenses for additional tax savings.
|How much can I contribute?|| |
|Can I change my contribution rate, even after Open Enrollment?|| |
No, not as a general rule unless you experience an IRS approved change in status.
|Can I “spend ahead,” or spend money that is not yet in my account?|| |
Yes, but on the Healthcare FSA and Limited Purpose FSA only. These two accounts are loaded with your annual contribution amount on January 1st of each year. The Dependent Care FSA must have funds in the account before you may pay or reimburse yourself for eligible childcare expenses.
|Does my money roll over year to year?|| |
No, these accounts are set up as “use it or lose it” accounts. You must spend the money or forfeit it.
|Can I take unspent money with me if I leave USG?|| |
No, you must spend the money prior to your termination in most cases.