Flexible Spending Accounts (FSAs) and Health Savings Account (HSA)
Flexible Spending Accounts (FSAs) allow employees to pay certain healthcare and dependent care expenses with pre-tax money.
With the Flexible Spending Accounts, employees must actively re-enroll each year. The enrollment form is located on the forms webpage and the flexible benefit administrator (FBA) website.
The plan year will run from July 1, 2020 through June 30, 2021.
• Plan Start Date: 7/1/2020
• Plan End Date: 6/30/2021
• Last Day to Spend Funds: 6/30/2021
• Last Day to Submit Claims: 9/28/2021
- Due to the circumstances of the COVID-19 outbreak, the IRS has released guidelines that allow for a Spend Down/Grace Period.
- Another change that has been implemented is an increase to the carryover amount for FSAs.
Health Care FSA
- Acupuncture, prescription eyeglasses/reading glasses/contact lens and supplies/eye exams/laser eye surgery, physician, ambulance, psychiatrist, psychologist, hospital, fertility treatments, diabetic supplies, physical therapy, hearing aids and batteries, medical equipment.
- Funds available as they are deposited into your account.
- $550 eligible for rollover
- Maximum contribution = $2,750
Dependent Care FSA
- Au Pair, Nannies, Before and After Care, Day Camps, Babysitters, Daycare for an Elderly Dependent, Daycare for a Disabled Dependent, Nursery School, Private Pre-School, Sick Child Center, Licensed Day Care Centers.
- Maximum contribution = 5,000 (2,500 if married filing separately)
Limited Purpose FSA (EEs covered by a High-Deductible Health Plan)
- Dental: Orthodontia (braces), fillings, crowns, check-ups.
- Vision: Eyeglasses, prescription sunglasses, routine eye exam, Lasik eye surgery, contact lenses, and diagnostic services.
- Preventative: Diabetes, High blood pressure, tobacco cessation, and cancer screening.
- Pre-Funded at the beginning of the year.
- Maximum contribution = $2,750
An HSA is a portable tax-advantaged personal savings account that can be used to pay for medical, dental, vision, and other qualified expenses now or later in life. To contribute to an HSA, you must be enrolled in a qualified high-deductible health plan (HDHP) and your contributions are limited annually. The funds can even be invested making it a great addition to your retirement portfolio.
AN HSA saves you money on your taxes in the following ways:
1. You pay no tax on the money you or your employer put into your HSA, up to the IRS limits.
2. You pay no taxes on interest and investment returns earned in your HSA.
3. You pay no tax on HSA money when you use it to pay eligible healthcare expenses.
- Examples of eligible expenses include co-Pays, deductibles, co-Insurance, dental and/or vision Expenses (non-cosmetic), long term care plans, COBRA premiums, and prescriptions.
- Annual contributions from all sources may not exceed $3,550 for singles or $7,100 for families in 2020. Individuals aged 55 and over may make an additional $1,000 catch-up contributions.
- HSA account with Avidia Bank
FSA and HSA accounts are administered through Flexible Benefit Administrators (FBA).
$550 Rollover FAQ
COF employee guide
Dependent care FSA - FAQ
Employee Update FAQs - 07/20/2020
Employee Update Flyer - 07/20/2020
Health Savings Account (HSA)
Limited Purpose FSA flyer
Mobile app and portal flyer
New Employee Memo
Smart App Launch FAQ
Flexible Benefit Administrators
Toll free: 1-800-437-3539