FLEXIBLE SPENDING ACCOUNTS

The Flexible Spending Account (FSA) is administered by Inspira Financial. Your contributions are made with pre- tax dollars from your pay – before federal income taxes and Social Security taxes are calculated. As a result, your taxable income is lower, so you pay less taxes in each paycheck. Then, when you have an eligible expense, you reimburse yourself with tax-free money from your account.

Eligible Expenses

• Health Care FSA — Use this account to pay for expenses not covered by any medical, prescription drug, dental, vision, or any other applicable and eligible plans, as well as copays, deductibles, and charges that exceed any benefit maximum limits, the plan’s reimbursement level, or reasonable and customary allowance.
• Dependent Care FSA — Use this account to pay for day care expenses for your dependent child(ren) under the age of 13 or other eligible dependents so you and your spouse, if married, can work or look for work.
  

Note: The Health Care FSA offers an extra 2½ month grace period to incur expenses for reimbursement from your 2024 account. This grace period does not apply to the Dependent Care FSA.

Important Facts About the FSAs
In exchange for tax advantages, the IRS requires eligible expenses are incurred and submitted timely, so you will not forfeit any unused balances. The following rules apply to FSAs:

• You must use it or lose it. Estimate carefully. You will forfeit any balance left in your FSA(s) after all your incurred expenses are submitted and paid (according to the timeframes in the chart on the following page). You cannot roll it over to the next year.
• You must enroll for the entire plan year. Your election (payroll deduction amount) may not be changed during the year, unless you have a qualified status change. 
• The two Accounts are separate. You cannot use the money in your Health Care FSA to pay for Dependent Care expenses, and vice versa.
• You must complete an enrollment form each year. If you participated in 2023, you still must complete an enrollment form to enroll for 2024. Your election may not be changed during the year unless you have a qualified status change.

FSA Decision Guidelines
Before participating in an FSA, ask yourself:

• How much did I spend on out-of-pocket health care and dependent care expenses last year?
• Do I expect to pay for some health care costs that are not totally covered by my benefits?
• Do I pay someone to care for my dependents while I work?
• Am I eligible for a tax credit for any health care or dependent care-related expenses? If so, will the tax credit or FSA participation be better for me?
• Does my spouse have FSAs available through an employer? If so, how do we want to coordinate our accounts?