What is a Flexible Spending Account (FSA)?
Flexible spending accounts allow you to save money on a pre-tax basis for certain healthcare and childcare expenses. You may pay for the expense at the time of service via a debit card or submit receipts later for reimbursement from the account. You determine your contribution amount(s) based on your anticipated expenses for the calendar year. However, since flexible spending accounts have a “use it, or lose it” rule it is best to estimate your contribution amount conservatively.
Resources
State Industrial Products offers 3 types of FSA’s:
- Medical FSA: You are eligible to enroll provided you or your spouse are not actively contributing to a health savings account (HSA).
- Limited Purpose FSA: If you are enrolled in a High Deductible Health Plan (HDHP) such as the Consumer HDHP, you may open a Limited Purpose FSA. This type of FSA can be used only for dental and vision expenses. Your medical expenses can only be claimed under a Health Savings Account (HSA).
- Dependent Care FSA: Using pre-tax contributions, a Dependent Care Account enables you to put money aside for expenses relating to care for children under the age of 13, or for a disabled spouse or parent, while you work. Examples include expenses incurred for day care, preschool, after-school care, summer day camp or elder-care.
Please Note: You do not need to be enrolled in the State Industrial medical plans to open any of these accounts, but certain IRS eligibility rules do apply to each account type.
Important points to remember:
- The Health Care FSA allows any qualified medical expense to be reimbursed.
- The Limited Purpose FSA reimburses you ONLYfor qualified dental and vision expenses not covered by insurance, like co-pays and deductibles.
| Contribution Limits | 2024 | Rollover Provision |
| Medical FSA (Gold or Silver PPO) | $3,050 | No rollover |
| Limited FSA (HDHP) | $3,050 | No rollover |
| Dependent Care FSA | $5,000 Joint Filing $2,500 Single Filing |
No rollover |
Can my election be changed during the year?
After you enroll, you can’t change the amount you contribute for the year, because your election stays in effect during the entire plan year (January 1through December 31).However, if you have a “Qualified Life Event” youmay change the amount of your contribution, but the changemust be consistent with the event.
The following “Qualified Life Events” may permit you to change your FSA election outside of open enrollment: a change in your legal marital status; a change in the number of tax dependents; termination or commencement of employment by you, your spouse or dependent; a change in employment status that results in gaining or losing eligibility for health coverage; and Medicare or Medicaid entitlement for you, your spouse or dependent.
Review the rules applied to the Health Care FSA and the Limited Purpose FSA plans. This is only a brief summary. More information is available in the Summary Plan Description (SPD)
Contact information
WEX
1-866-451-3399
