Note: FSA elections cannot change during the plan year
Unlike a Health Savings Account, you cannot change your Flexible Spending Account election amount during the plan year. The amount you elect during Annual Enrollment will remain in effect for the year unless you experience a
qualifying life event. This applies to Limited Purpose FSA, Health Care FSA and Dependent Care FSA.
The following accounts are designed to help you pay out-of-pocket health care and dependent care expenses on a pre-tax basis:
Questions on HSA or FSA?
PayFlex has a comprehensive list of frequently asked questions that can help answer some of the questions you have about tax advantage accounts.
Note: not all categories/products listed are available through Farm Credit Foundations.
View PayFlex FAQs
Highlights of Tax Advantage Accounts
Tax Advantage Accounts |
Features |
Health Savings Account (HSA) | Contribute through payroll deduction. You may also make personal, after-tax contributions and file for an income tax deduction Maximum 2020 contribution is $3,550 for individual and $7,100 for family; Catch-up HSA contribution for age 55 and older is $1,000 Use pre-tax contributions now and/or save and invest for future health care expenses. You will earn interest on your cash account and once you have $1,000 or more in your account, you can invest in mutual funds Your HSA is portable and belongs to you
There is no “use it or lose it” rule; funds can grow year after year You can also enroll in a Dependent Care FSA or Limited Purpose FSA
For a comprehensive list of eligible expenses and
eligibility information, go to www.irs.gov
(Publications 502 and 969)
|
Limited Purpose Flexible Spending Account (FSA) | Provides pre-tax savings limited to dental and vision expenses such as orthodontia, deductibles, coinsurance, eye examinations, prescription glasses and more Go to
www.irs.gov to review eligible dental and vision expenses Combines with the Consumer Choice PPO and HSA programs only $2,750 plan year maximum “Use it or lose it” rule applies Pre-tax payroll deductions are automatic You can also enroll in a Dependent Care FSA
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Health Care Flexible Spending Account (FSA) | For a comprehensive list of eligible expenses visit
www.irs.gov (Publication 502) $2,750 plan year maximum “Use it or Lose it” rule applies Pre-tax payroll deductions are automatic Not available to HSA participants You can also enroll in a Dependent Care FSA
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Dependent Care Flexible Spending Account (FSA) | For a comprehensive list of eligible expenses visit
www.irs.gov (Publication 502) $5,000 plan year maximum “Use it or Lose it” rule applies Pre-tax payroll deductions are automatic
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