Flexible Spending Accounts (FSAs) are tax-advantaged accounts that you can use to pay for eligible medical, prescription drug, dental, vision, hearing and dependent day care expenses. Your contributions to an FSA are deducted from your pay before taxes, which lowers your taxable income. You have two FSA options for 2019:
Dependent Care FSA.
If you enroll in an FSA during Open Enrollment, contributions will be taken from your paychecks starting with the first pay period in January 2019. You will have access to your full FSA contribution amount starting January 1.
If you enroll in an FSA when you first become eligible for coverage, contributions will be taken from your paychecks starting with your first paycheck after enrollment. You will have access to your full FSA contribution immediately.
You can’t change your contribution amount outside of Open Enrollment unless you have a qualifying life event.
What are the Differences Between the FSAs?
Dependent Care FSA
All eligible employees (Employees in the Health Savings Plan CANNOT have a Healthcare FSA)
All eligible employees
2019 Contribution Maximum
$5,000 (married and filing jointly or single) $2.500 (married and filing separately)
Plan Year Rollover
Any amount from $50 to $500
Unused money is forfeited
Medical, prescription drug, dental, vision and hearing expenses, including copays, coinsurance and deductibles
Dependent care expenses for daycare or after-school care expenses for a child under age 13, an elderly person or a person with disabilities, as long as you claim them as a dependent on your tax return. Expenses must be incurred because you and your spouse are working or looking for work