Flexible Spending Accounts (FSA)

Overview

To help you pay for health care and dependent day care expenses, ABC Company offers access to reimbursement accounts (also known as FSAs) administered by PayFlex:

  • Health Care Reimbursement Account (HCRA) – Use to reimburse yourself for medical, prescription drug, dental and vision expenses not covered by your medical and/or dental plan. (Not available to MAP Plus Option 2 High Deductible participants with an HSA per IRS rules.)
  • Limited-use FSA – Available only to MAP Plus Option 2 High Deductible participants. Before you have met your medical deductible, use this account to reimburse yourself for dental and vision expenses. After you have met your medical deductible, you can convert your account to a full FSA to use for dental, vision, medical and pharmacy expenses. To do this, you must call PayFlex and provide documentation that you have met your deductible or complete an online acknowledgment on the PayFlex website.
  • Dependent Day Care Reimbursement Account (DCRA) – Use to reimburse yourself for certain childcare or other dependent day care expenses incurred while you (and your spouse if applicable) work or attend school full-time during the plan year.

Things to know.

Decide if contributing to an FSA could save you money on your taxes. Ask yourself: How much money did I spend this past year on out-of-pocket health care and dependent day care expenses? Do I expect to have similar expenses in 2020? Could I use an FSA to pay for and save money on these expenses?

What you do not use, you will lose. For your 2020 contributions, you must use all the money in your account(s) by March 15, 2021, and submit your expenses by April 30, 2021. Plan carefully to ensure you do not lose any of your FSA dollars. IRS rules require forfeiture of any money remaining in your 2020 account(s) after April 30, 2021.

Use your FSA dollars to pay yourself back, tax free. For all qualifying expenses, refer to IRS Publication No. 502 (HCRA) and IRS Publication 503 (DCRA). Remember, only your expenses and expenses for qualified dependents (per IRS rules) are eligible for reimbursement. Expenses for some dependents do not qualify.

Want to contribute? You must enroll. Prior elections will not carry over automatically. You must enroll each year during annual enrollment. And remember, you cannot transfer money between accounts. Select an amount for convenient pre-tax payroll deductions, up to the 2020 limits:


  • HCRA – $100 to $2,700
  • Limited-use FSA – $100 to $2,700
  • DCRA – $100 to $5,000 (per household)

Are you currently contributing to the HCRA and planning to enroll in the HSA for 2020? You may make contributions to the HSA during the “grace period” for the HCRA (January 1 – March 15, 2020) if your 2019 HCRA balance is exhausted by December 31, 2019. If your HCRA balance is not exhausted by December 31, 2019, you may not begin contributing to an HSA until April 1, 2020.

Consider taking advantage of HCRA automatic claims reimbursement. It is convenient and easy to use. With automatic claims reimbursement, you have the advantages of:

  • No claim forms to file
  • Money from your HCRA is automatically sent to you in the mail or through direct deposit (if you are enrolled and have eligible claims)

To be eligible, you must enroll in the ABC Company HCRA and one of the following:

  • MAP Plus Option 1 Low Deductible
  • Delta Dental or XYZ DMO

The automatic reimbursement option will not be useful to you if:

  • You coordinate medical benefits with another plan
  • You are in an HMO
  • Your ABC Company spouse covers you under an ABC Company-sponsored medical plan
  • You cover a domestic partner under your medical and/or dental plan

Tools and resources.

Need help making your FSA decisions?

Use the Reimbursement Accounts Tool on the ABC Company Benefits enrollment website to calculate how much to contribute and estimate your tax savings.

Looking for more details on the FSAs?

Check out the Benefits & Well-being site for additional information, including Summary Plan Descriptions (SPDs).

Looking to connect with XYZ PayFlex?

Connect with the resources available from the XYZ PayFlex, including mobile apps.