A Flexible Spending Account (FSA) allows an employee to set aside a portion of earnings to pay for qualified expenses on a pre-tax basis for themselves, their spouse and any tax dependents. The full annual amount of funding is available at the beginning of the plan year. Employers may also choose to contribute to the FSA under certain parameters.
The Patient Protection and Affordability Act has shifted FSA rules and regulations. For calendar year 2018, the employee FSA contribution limit is $2,650. However, under certain conditions, up to $500 remaining in the account at the end of the plan year may be rolled over unlike the previous “use it or lose it” standard where any unused funds are forfeited. Health care expenses such as medical, dental, vision and limited over-the-counter items are FSA eligible.
Please visit our partner the FSA Store for a list of some FSA eligible items.