What’s a Health Care FSA?
This is an account you can use to pay for eligible health care expenses for you and your covered dependents.
How it works:*
- Figure out how much you may need for eligible health care expenses for you and your covered dependents for the plan year.
- Decide how much to contribute from each paycheck up to the yearly limit set by the IRS guidelines.
- You save money because you contribute to the account from your paycheck before taxes.**
- Some plans include a debit card so you can easily pay from your account at the time of service.
- You may be able to carry over up to $500 into the next plan year, depending on your employer’s plan.
*Plans vary, but this is how a Health Care FSA generally works. Please refer to your plan documents, including specific information on your Health Care FSA, or contact your employer for more information on what’s covered and not covered by your plan.
**Some cities and municipalities may impose income taxes on FSAs. For detailed information please contact your local department of taxation.