Flexible Spending Accounts - 2020
Health Care Flexible Spending Account
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 2020, the contribution limit is $2,700. 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 carryover provision of up to $500.
Dependent Care Flexible Spending Account
Regardless of which health plan you choose, you can elect a Dependent Care FSA. This account can be used for dependent child expenses up to the age of 13. Once your child reaches age 13, they are no longer eligible. This account is used to reimburse you for dependent care expenses, such as child day care, elder care, etc.
The contribution limits for 2020 are:
- $5,000 per year per household
- $2,500 for married individuals filing a separate tax return