Take advantage of significant tax savings by participating in a flexible spending account (FSA). You can elect to have a portion of your paycheck contributed pre-tax to pay for qualified medical expenses such as deductibles, co-payments, dental and vision, or to pay for qualified dependent care.
Funds from a health care FSA can be used for qualified expenses including medical, dental, vision, deductibles, co-payments and coinsurance. For a full list of qualified expenses allowed by the IRS, see Publication 502. With health care FSAs, the entire elected amount is available to you on the first day of the health plan year. You don't have to wait for your payroll contributions to accumulate before paying expenses with your FSA.
Used in conjunction with a health savings account (HSA), an LPFSA allows you to contribute additional pre-tax dollars to use for dental and/or vision expenses. This allows you to maximize your pre-tax HSA contributions and contribute additional pre- tax dollars to an LPFSA.
PDFSAs can be used for eligible medical expenses once a specified minimum deductible has been met. If you have an integrated HSA with HealthEquity, we automatically accumulate incurred claims towards your deductible.
A dependent care FSA enables you to set aside pre-tax dollars to pay for qualified dependent care expenses. Funds can be used to pay for day care, preschool, elderly care or other dependent care. To qualify for a DCRA, the IRS requires that the dependent care is necessary for you or your spouse to work, look for work or attend school full-time.
During your employer's open enrollment at the beginning of each plan year, sign up to participate in an FSA. Select the option that best meets your needs and then determine the amount you would like to contribute from your pre-tax earnings. Typically anyone whose employer offers an FSA can participate, including employees not covered under the employer's health plan. Your employer may exclude certain types of employees, such as part-time, seasonal, or temporary. Ask your employer benefits team to verify eligibility. Self-employed individuals can't participate in an FSA.
Your employer will arrange to have the determined amount of your pre-tax earnings contributed to your FSA. Typically, the amount withheld from your paycheck is equal each pay period.
When you incur a qualified expense, you can either pay with the HealthEquity® Visa® Reimbursement Account Card* provided by some plans or submit the expenses through the HealthEquity online tool for reimbursement. Remember to save all receipts; you'll need them for reimbursements and to validate your expenses with your employer or administrator.
*This card is issued by The Bancorp Bank pursuant to a license from Visa. U.S.A Inc.
Our team of specialists based in Salt Lake City is available every hour of every day, providing you with the tools and information you need to optimize your FSA.