Unified Fire Authority
Flexible Spending Account
Flexible Spending Account
Why should I choose a flexible spending account ( FSA )?
A flexible spending account ( FSA ) lets you save money by setting aside pre-tax dollars to pay for eligible medical , dental , vision and dependent care expenses incurred by you , your spouse or your eligible dependents .
Take home more money Putting money into an FSA decreases your taxable income , which means you ’ ll take home more money .
Plan better for health expenses Spend your funds on the eligible health expenses you incur throughout the year . The IRS has a “ use it or lose it ” rule for FSAs , which means funds must be spent by the end of the plan year unless your employer offers a grace period or carryover .
Flexibility You can use your funds for eligible expenses occurred by you , your spouse , or your eligible dependents . Thousands of products and services are FSA eligible . ( Eligible expenses are determined by the IRS .)
Funds on Day 1 All of your FSA dollars are available on the very first day of the plan year . For example , if you choose to contribute $ 1,200 to your FSA , your contributions will be deducted evenly across all of your paychecks for the year , but you have access to all $ 1,200 on Day 1 .
Can I enroll ? Yes , as long as you or your spouse aren ’ t actively enrolled and contributing to a Health Savings Account ( HSA ).
Grace Period
A grace period extends the period of time in which you can use your FSA funds on eligible expenses , such as going to the doctor or purchasing prescriptions or over-the-counter medications .
If you end up spending less than you anticipated when you made your elections during open enrollment , you can tap into those funds for up to an additional 2½ months .
Contribution limits + IRS regulations
The IRS sets the maximum dollar amount you can elect to contribute to a medical FSA . The annual contribution limit for 2024 is $ 3,200 .
Tip : Review how much you spend on eligible healthcare expenses every year to determine how much to elect .
Changing your election
In order to make changes to your election after open enrollment , you need to experience a qualifying life event . These events include :
• Change in marital status or in the number of dependents
• Increase due to birth , adoption , or marriage
• Decrease due to death , divorce , or loss of eligibility
• Gain or loss of eligibility due to a change in participant , spouse , or dependent employment status
If you experience a qualifying life event , contact your employer to make changes to your election .
• The grace period does not impact the amount of time you have to file claims or submit documentation for expenses .
• This extension does not impact the next plan year . You can still elect up to the full maximum annual election .
• If you have the payment card , it will continue to work as normal , using the funds remaining in your prior plan year first .
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