Flexible Spending Accounts

Flexible Spending Accounts (FSAs) offer a convenient way to set aside money for health care and dependent care expenses, while saving on taxes. There are three types of accounts: Health Care FSA, Limited Purpose FSA, and Dependent Care FSA.

You must enroll each year. The IRS sets a “use it or lose it” rule on these accounts, so please estimate your expenses carefully before choosing your contribution amount. You have until March 15 of the following year to incur expenses for reimbursement and until March 31 of the following year to submit your claims.

If you enroll in the PPO or are not enrolled in a Pursuit Aerospace medical plan, you can contribute up to $3,200 in 2024, before taxes are withheld, to help pay for out-of-pocket medical, dental or vision care expenses. You can use your FSA starting on January 1 for eligible expenses, which include:

  • Deductibles
  • Prescription drug and office visit copayments
  • Over-the-counter medications
  • Dental expenses
  • Vision care expenses, such as eye exams, prescription glasses, contact lenses and laser eye surgery
  • Hearing aids

For more information about eligible expenses, visit learn.healthequity.com/qme. You may also refer to IRS Publication 969.

If you are contributing to an HSA or receiving an employer HSA contribution, you cannot contribute to a regular Health Care FSA. However, you can contribute to a Limited Purpose FSA, which allows you to contribute up to $3,200 in 2024, before taxes are withheld, to pay for eligible dental and vision expenses only (no medical and prescription drug expenses).

Funds are deducted throughout the year, but all funds are available on January 1.

Paying for eligible dental and vision expenses from a Limited Purpose FSA can help you keep more savings in your HSA and, over time, build your HSA for future health care needs.

Please note: You cannot make a claim through the HSA and Limited Purpose FSA for the same expense.

You can contribute between $100 and $5,000 each year, on a pre-tax basis, to pay for care while you work or look for work for a child under age 13, a disabled spouse, or a qualifying disabled dependent relative.

If you and your spouse both contribute to Dependent Care FSAs, your combined total may not exceed $5,000 in a calendar year. (There’s a $2,500 annual maximum contribution if you’re married and you and your spouse file separate tax returns.) The Dependent Care FSA can’t be used in conjunction with the dependent care tax credit. For additional information, please refer to IRS Publication 503.

The total funds you contribute annually are not immediately available at the beginning of the year. As money accumulates in your Dependent Care FSA, you can use it to pay for eligible dependent care expenses.

Eligible expenses include:

  • Care at a nursery school, day camp or care center.
  • Services from individuals who provide dependent day care in or outside your home, unless the provider is your spouse, your own child(ren) under age 19 or any other dependents.
  • After-school care for children under age 13.
  • Household services related to the care of an elderly or disabled adult who lives with you.

A Convenient Way to Save for Expenses

HealthEquity provides one-stop access to your Health Care, Limited Purpose, and Dependent Care FSAs. Visit healthequity.com to:

  • Submit claims and review claim status
  • Learn about eligible expenses
  • Check your account balance
  • Learn how to use the debit card for direct access to your spending account dollars

You can call HealthEquity Member Services at 866-346-5800 and speak with a customer service representative.

Ready to enroll?

Log on to your ADP Workforce Now account to elect your benefits if you’re newly hired, during the annual Open Enrollment period or if you experience a qualifying life event.
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