Health Care FSA
You can open a separate Health Care FSA (HCFSA) and contribute up to $2,750 tax-free from your paycheck to reimburse yourself for out-of-pocket expenses, such as your portion of the deductible, prescription drugs, and eligible dental and vision expenses. The full amount you elect during enrollment is available so you can start reimbursing yourself for eligible expenses from this account immediately.
If you enroll in a Health Care FSA for 2021, you can incur eligible expenses through December 31, 2021. All claims must be submitted to ConnectYourCare by March 31, 2022, to qualify for reimbursement.
Remember, if you have a balance in your 2020 Health Care FSA at the end of the year, up to $550 is automatically rolled over to your 2021 account. FSAs are subject to the IRS ‘use it or lose it rule’ so that any amounts over $550 remaining in your account at the end of the year will be forfeited.