Health Care Flexible Spending Account
If you elect the PPO Plan, you have the option to enroll in a Health Care Flexible Spending Account (FSA), managed through HealthEquity. Like the Health Savings Account (HSA), contributions made to the Health Care Flexible Spending Account are tax-free. However, unlike the HSA, funds contributed must be used in the same plan year for eligible health care expenses. For 2018, the contribution limit has been increased to the IRS limit of $2,600. This election must be made during benefits open enrollment and cannot be changed, unless of a life-qualifying event. For those who elect a Health Care FSA, there is a carry over provision of up to $500.
Dependent Care Flexible Spending Account
Regardless of which health plan you choose, you can elect a Dependent Care FSA. This account is used to reimburse you for dependent care expenses, such as child day care, elder care, etc. The contribution limits for 2018 are:
- $5,000 per year per household
- $2,500 for married individuals filing a separate tax return
See the benefits open enrollment e-mag for more information.