Learning Center

Medical FSA Dependent Care FSA Health Savings Account


FSA - Flexible Spending Account


The Flexible Benefit Cafeteria Plan allows you to save Federal, State and FICA taxes on certain qualified expenses.It is like getting a 25%‐40% discount on those expenses you have to pay any way. It is important for you to understand thebenefit selections available under the plan, how the plan works and how you can use the plan to your tax advantage.

The General Purpose Health FSA can be used for any medical, dental and vision expense incurred by you, a spouse or dependent that is not paid for by insurance coverage or reimbursement through any other Flex Plan or governmental organization. This is defined as a ‘general purpose’ Health FSA. If you are eligible to contribute and are contributing to a Health Savings Account (HSA), you cannot participate in this Health FSA.

The expenses must be incurred (services received) after your coverage period starts through the end of the plan year.

Monthly orthodontia expenses may transcend a plan year.

The IRS sets the maximum dollar amount you can elect and contribute to a Flexible Spending Account (FSA).The 2020 annual contribution limit is - $2,750 We recommend reviewing how much you spend on eligible healthcare expenses every year to determine how much to elect.

Use-or-lose

Don’t forget to spend your FSA dollars. You will forfeit any money left in your account at the end of the plan year. Check with your employer to confirm how many days you have to submit claims for reimbursement after the plan year ends.


Medical FSA

Paying for Braces with your FSA


FSA - Dependent Care


Why should I choose a Dependent Care Flexible Spending Account (FSA)? A Dependent Care FSA is a benefit that allows you to choose how much of your paycheck you’d like to set aside, before taxes are taken out, for eligible dependent care expenses each year. The Dependent Care FSA lets you pay for eligible dependent care expenses while you reap the benefits of additional tax savings. You’re spending the money either way. This way, eligible childcare and other dependent care costs are a little less.*
*Based on a 30% tax bracket.

The IRS sets the maximum dollar amount you can elect and contribute to a Dependent Care FSA.
The 2020 annual contribution limit is: Per household - $5,000, Per person (if married or filing spearately) - $2,500

Funds available as you contribute. Funds will be available to you as they’re deducted from your paycheck and contributed to the plan. This means when payroll is processed and your paycheck is available to you, your Dependent Care FSA contributions will be applied to your account and available for reimbursement.Use-or-lose. Don’t forget to spend your FSA dollars. If you have not used all of your FSA dollars before the end of the plan year, you will forfeit any money left in your account. Check with your employer to confirm how many days you have to submit claims for reimbursement after the plan year ends.


Dependent Care FSA


HSA - Health Sending Account


Why should I choose a Health Savings Account (HSA)? An HSA is a benefit that allows you to choose how much of your paycheck you’d like to set aside, before taxes are taken out, for healthcare expenses or use as a retirement savings tool. It’s yours. Think of your HSA as a personal savings account. Any unspent money in your HSA remains yours, allowing you to grow your balance over time. When you reach age 65, you can withdraw money (without penalty) and use it for anything, including non-healthcare expenses.

Flexibility. Save for a rainy day. Invest for your future retirement. Or spend your funds on qualified expenses, penalty free.

Easy to use. Swipe your benefits debit card at the point of purchase. There is no requirement to verify any of your purchases. We recommend keeping any receipts in case of an IRS audit. Smart savings. The HSA’s unique, triple-tax savings means the money you contribute, earnings from investments and withdrawals for eligible expenses are all tax-free, making it a powerful savings and retirement tool.


2021 HSA - Health Sending Account Contribution Limits

Single HDHPFamily HDHP
Maximum Contribution Limit$2800$1400
Minimum Deductible$1400$2800
Catch-up Contribution (55+)$1000$1000

Why Should I Get a Health Savings Account?

Paying for Braces with your HSA


If you have any questions please call Compensation Consulutants Ltd. at 1-800-447-1690.