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 $ 1,000 to your FSA, your contributions will be deducted evenly across all of your paychecks for the year, but you have access to all $ 1,000 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).
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 2025 is $ 3,300.
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
Grace Period • Gain or loss of eligibility due to a
change in participant, spouse, or A grace period extends the period of time in which you can use your FSA funds dependent employment status on eligible expenses, such as going to the doctor or purchasing prescriptions or over-the-counter medications.
If you experience a qualifying life event, contact your employer to If you end up spending less than you anticipated when you made your elections make changes to your election. during open enrollment, you can tap into those funds for up to an additional 2½ months.
• 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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