We provide you with an opportunity to participate in up to two different flexible spending accounts (FSAs) administered through Navia Benefits. FSAs allow you to set aside a portion of your income, before taxes, to pay for qualified health care and/or dependent care expenses. Because that portion of your income is not taxed, you pay less in federal income, Social Security and Medicare taxes.
Health Care FSA
For 2024, you may contribute up to $3,200 to cover qualified health care expenses incurred by you, your spouse/RDP and your children up to age 26.
Some qualified expenses include:
- Coinsurance
- Copayments
- Deductibles
- Prescriptions
- Dental treatment
- Orthodontia
- Eye exams/eyeglasses
- LASIK eye surgery
For a complete list of eligible expenses, visit IRS.gov.
If you enroll in the Aetna HDHP with HSA medical plan, you may not participate in a Health Care FSA; however, you are eligible to participate in the Limited Purpose FSA. Please see below for more information.
Limited Purpose FSA
For 2024, you may contribute up to $3,200 in a Limited Purpose Health Care FSA (LPFSA). A LPFSA is used in place of the general purpose Health Care FSA if the participant is enrolled in a High Deductible Health Plan with a Health Savings Account (HSA). A LPFSA is much like a typical, general purpose Health Care FSA. However, under a LPFSA, eligible expenses are limited to qualifying dental and vision expenses for you, your spouse, and your eligible dependents. This allows you to maximize your pre-tax dollar savings while still participating in the Aetna HDHP.
Dependent Care FSA
For 2024, you may contribute up to $5,000 (per family) to cover eligible dependent care expenses ($2,500 if you and your spouse file separate tax returns).
Some eligible expenses include:
- Care of a dependent child under the age of 13 by babysitters, nursery schools, pre-school or daycare centers
- Care of a household member who is physically or mentally incapable of caring for him/herself and qualifies as your federal tax dependent
For a complete list of eligible expenses, visit IRS.gov.
Important FSA Rules
Because FSAs can give you a significant tax advantage, they must be administered according to specific IRS rules:
- You must enroll each year to participate.
- You have 90 days from the end of the plan year in which to submit claims for eligible expenses incurred during the plan year.
- Health Care FSA: Unused funds of up to $640 from one year can carry over to the following year. Carryover funds will not count against or offset the amount that you can contribute annually. Unused funds over $640 will NOT be returned to you or carried over to the following year.
- Dependent Care FSA: Unused funds will NOT be returned to you or carried over to the following year. You can incur expenses through December 31, 2024, or your date of termination if you leave the company during the plan year.
- You can incur expenses through December 31, 2024 or your date of termination if you leave the company during the plan year. You must file claims by March 31, 2025.