Flexible Spending Accounts

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.

Limited Purpose Health Care FSA

If you have an HSA, you can contribute up to $2,750 tax-free dollars from your paycheck to a Limited Purpose FSA to pay for eligible dental and vision expenses only. The full amount you elect during enrollment is available so you can start reimbursing yourself for eligible expenses from this account immediately in 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 Limited Purpose 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.

Dependent Care FSA

The Dependent Care FSA (DCFSA) allows you to set aside pre-tax dollars for eligible day care costs for children under age 13 or dependent parents. This account cannot be used to reimburse health care expenses for your dependents — only to reimburse the cost of day care for your eligible dependents. Day care expenses include nursery schools, day care centers, adult day care centers, in-home providers and before- and after-school care.

You can contribute up to the IRS maximum through payroll deductions. Unlike the Health Care FSA, you can only be reimbursed with money actually in your account. This means you may want to wait before submitting your expenses until you have accumulated enough money in your account. You can incur eligible expenses through December 31, 2021. All claims must be submitted to ConnectYourCare by March 31, 2022, to qualify for reimbursement.

Consider a Flexible Spending Account

Watch this video to see how FSAs save you money on health care and dependent day care expenses.

Additional FSA Information

If you’d like to know more about Flexible Spending Accounts, take a look at the FSA Brochure.

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ConnectYourCare

FSA and HSA Administrator

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