Healthcare FSA
A Healthcare Flexible Spending Account (FSA) provides important tax advantages that can help you pay healthcare expenses on a pre-tax basis. By anticipating your family’s health care costs, you can lower your taxable income so you get to keep more of what you earn.
The Healthcare FSA is available to those enrolled in the Anthem Medical Plan OR if you are waiving medical coverage (but not enrolled in another medical plan that is qualified as a high deductible health plan). If you enroll for the Healthcare FSA, funds in the account must be used for qualified healthcare expenses. For a full listing of eligible and ineligible expenses, please visit the IRS.gov website under the Publication 502 HERE.
The total amount you elect for the year is available to you at the beginning of the plan year, regardless of how much you have contributed via payroll deduction. The annual maximum contribution is $2,750 per calendar year.
If you are married and your spouse also has access to a Healthcare FSA through his or her own employer, you are each able to contribute up to the IRS (or employer) maximum.
You have 90 days after the plan year ends to submit claims for the prior calendar year. You may also rollover $500 from your prior year balance for use in the current year. All other funds in the account will be forfeited. Please plan carefully and conservatively so you do not lose money.
Dependent Care FSA
A Dependent Care FSA (DCFSA) is a pre-tax benefit account used to pay for eligible dependent care services, such as preschool, summer day camp, before or after school programs, and child or adult daycare. It’s a smart, simple way to save money while taking care of your loved ones so that you can continue to work.
The IRS household maximum is $5,000. If you and your spouse both have this as a benefit offering, together you cannot contribute more than $5,000. There are other limits for those married filing separate.
Why enroll in a Dependent Care FSA?
- Save an average of 30 percent on dependent care services
- Reduce your overall tax burden – funds are withdrawn from your paycheck for deposit into your account before taxes are deducted
- Take advantage of several convenient, no-hassle payment and reimbursement options
Eligible expenses Include:
- Care for your child who is under age 13
- Before and after school care
- Babysitting and nanny expenses
- Daycare, nursery school, and preschool
- Summer day camp
- Care for your spouse or a relative who is physically or mentally incapable of self-care and lives in your home
