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Flexible Spending Accounts (FSA) Plans

Flexible spending accounts (FSAs) provide a great opportunity to get more for your dollars. Every FSA dollar you spend saves you money – not because the services cost less - but because you use dollars that have not been taxed.

The following accounts are available:

*You cannot be enrolled in both the health care FSA and HSA-compatible FSA at the same time. The HSA-compatible FSA is also referred to as a "Limited-Purpose" FSA.

The FSAs are administered by WageWorks.

If you enroll in an FSA within your initial eligibility period, your coverage will be effective on the first day of the month following 30 days of employment.

If you do not enroll in an FSA within your initial eligibility period, you may enroll for coverage during the next Annual Enrollment period or as summarized in Making Changes During the Year

Make your flexible spending account choices before your enrollment deadline

You may:

  • Choose to contribute from $100 to $2,650 to the health care FSA or the HSA-compatible FSA

  • Choose to contribute from $100 to $5,000 per calendar year to the Dependent Care FSA ($2,500 if you and your spouse file separate tax returns)

Specify an annual (not monthly) contribution amount for each FSA. The annual amount is divided by 24 pay periods during the year to determine the deduction to be made from each of your amount may be reduced or your participation may be terminated if the plan fails one of several IRS benefit limitation tests. You will be advised if this occurs.

FSA Options at a Glance

 Health Care FSA* HSA-Compatible FSA* Dependent Care FSA
Not available to employees enrolled in a high deductible medical plan with an HSA option
Only available to employees enrolled in a high deductible medical plan with an HSA option
Available to all employees
Contribution Amounts
$100 to $2,650
$100 to $5,000** ($2,500 if you and your spouse file separate tax returns)
Eligible Expenses
You and your eligible dependents' health care expenses that you pay out of pocket and are not reimbursed by any other source (such as insurance). For example, you can use FSA dollars for medical, dental and vision copays, coinsurance and deductible amounts.
You and your eligible dependents' dental and vision expenses that you pay out of pocket and are not reimbursed by any other source (such as insurance). For example, you can use FSA dollars for dental and vision copays, coinsurance and deductible amounts.
Out-of-pocket costs for licensed nurseries or day care centers, babysitting services, day camp and after-school programs, and caregivers for an elderly or incapacitated dependent. The expenses must be necessary to allow you – and, if applicable, your spouse – to work, look for work or go to school full time.
Access to Contributions
As soon as participation begins, you can be reimbursed in full for eligible expenses up to your annual contribution amount minus any reimbursements you have already received regardless of the current balance in your account.
You can be reimbursed for eligible expenses only up to the amount available in your account at the time of the claim. The remainder will be reimbursed after you make additional contributions.
*You cannot be enrolled in both the health care FSA and HSA-compatible FSA at the same time. HSA-compatible FSA is also referred to as a "Limited-Purpose" FSA.
** You may not contribute more than your earned income or that of your spouse, whichever is less. For example, if you earn $25,000 per year and your spouse earns $4,000 per year, your maximum contribution is limited to $4,000 per year. In addition, your contribution amount may be reduced if the plan fails one of several IRS benefit limitations tests. You will be advised if this occurs.

Claim Filing Deadline


There is no grace period for this plan; therefore, you must spend your funds by the close of the plan year (December 31, 2018) and claims must be filed by March 31, 2019. If you do not spend your funds by December 31, 2018, the claim administrator will automatically rollover up to $500 of unused health care FSA funds into the following plan year. Any additional balance in your account after December 31, 2018 must be forfeited. Rollover dollars will not be available until approximately 2 weeks after the 2016 claim filing deadline. Keep in mind that if you do not elect to participate in the new plan year and you lose your debit card, you will need to file paper claims (via mail or via the smart phone app).

For FSA questions or to confirm the eligibility of your expenses, contact WageWorks. You can visit www.wageworks.com or call 877.924.3967.

Important FSA Rules and Restrictions

When you enroll in an FSA midyear, your contribution amount applies to the remaining part of the year – not a full year. This means that you cannot file claims for expenses incurred before you are enrolled in the FSA. (An expense in "incurred" on the date the service is provided or the supply is purchased.)

You can enroll in an FSA or update your FSA contribution amount after your enrollment deadline only if you experience a qualifying event as summarized in Making Changes During the Year.

If your change allows you to enroll in an FSA midyear, your contribution amount applies only to the period remaining in that year - you cannot file claims for expenses incurred before your enrollment in the FSA becomes effective.

Tax Savings

Federal regulations allow FSA contributions to be deducted from your pay on a pretax basis. This means that you do not pay federal or state (in most states) income taxes or employment taxes (such as FICA) on your contributions.

Your actual savings depend on your personal tax situation. The example below highlights how your take-home pay could change if you participate in the plan. You should talk with a tax advisor to find out how this plan will affect your specific tax situation.

Health Care FSA* HSA-Compatible FSA* Dependent Care FSA
Not available to employees enrolled in a high deductible medical plan with an HSA option
Only available to employees enrolled in a high deductible medical plan with an HSA option
Available to all employees

Maximum Contribution

$2,650

$2,650

$5,000
If you contribute this much:
$1,200
$1,200
$2,500
And your tax rate is:
25%
25%
25%
Your estimated annual savings are (your actual savings will vary):
$300
$300
$625
*You cannot be enrolled in both the health care FSA and HSA-compatible FSA at the same time. HSA-compatible FSA is also referred to as a "Limited-Purpose" FSA.

Retain Your FSA Debit Card Receipts

The IRS requires FSA administrators to carefully audit transactions. Therefore, you should retain your receipts in the event WageWorks auditors need to prove your transaction was for eligible expenses. Failure to provide requested receipts will result in FSA debit card suspension and may require you to reimburse funds to the plan.

FSA vs. IRS Tax Credit

Determining which option to use – the Dependent Care FSA or the IRS Tax Credit for Child and Dependent Care Expenses – depends on your personal tax situation. You should contact your tax advisor before deciding to participate in the plan.

Manage Your 2018 FSAs with WageWorks

You'll find valuable tools at www.wageworks.com to help you manage your account and use your FSA dollars. In addition to reviewing your FSA activity online, you can:

Pay and File Claims Online

You can pay many of your eligible health care and dependent care expenses directly from your FSA without having to pay out-of-pocket or file paper claims. It's quick, easy, secure and available online at any time. To pay a provider:

Use the EZ Receipts Mobile App

You can file and manage your claims as well as review your WageWorks health care card usage with a click of your smartphone or mobile device camera. You have control with the EZ Receipts mobile app from WageWorks. To use EZ Receipts: