2019 Flexible Spending Accounts

Health Care Flexible Spending Account (FSA)

If you elect the PPO Plan, you have the option to enroll in a Health Care Flexible Spending Account (FSA), managed through HealthEquity. Like the Health Savings Account (HSA), contributions made to the Health Care Flexible Spending Account are tax-free. However, unlike the HSA, funds contributed must be used in the same plan year for eligible health care expenses. For 2019, the IRS allowed contribution limit is $2,700, however, due to a delay in the IRS notifying employers, Penn State is keeping the FSA contribution at $2,650 which is the 2018 limit. This election must be made during benefits open enrollment and cannot be changed, unless of a life-qualifying event. For those who elect a Health Care FSA, there is a carry-over provision of up to $500.

Dependent Care Flexible Spending Account (FSA)

Regardless of which health plan you choose, you can elect a Dependent Care FSA. This account is used to reimburse you for dependent care expenses, such as child day care, elder care, etc.

The contribution limits for 2019 are:

  • $5,000 per year per household
  • $2,500 for married individuals filing a separate tax return

For any questions, contact HealthEquity at 1-866-346-5800.