Flexible spending accounts, or FSAs, provide you with an important tax advantage that can help you pay health care and dependent care expenses on a pre-tax basis. By anticipating your family’s health care and dependent care costs for the next plan year, you can set money aside for these expenses and lower your taxable income at the same time.
For more information, download the FSA packet below.
How do I use an FSA?
An FSA offers two options, and you can enroll in one or both:
Health Care FSA: a health care reimbursement FSA lets you pay for certain IRS-approved medical care expenses not covered by your insurance plan with pre-tax dollars. For example, cash that you now spend on copays, prescriptions, or other out-of-pocket medical expenses can instead be placed in the health care reimbursement FSA pre-tax. For more information on the types of products and services that are covered, visit fsastore.com/fsa-eligibility-list. The 2024 annual maximum contribution to the health care reimbursement FSA is $3,200.
Dependent Care FSA (DCA): A DCA uses pre-taxed dollars to help you save on qualified dependent care including childcare, summer and day camps, and care for dependent loved ones who are unable to care for themselves and who live with the participant. This added benefit helps participants stretch their dependent care dollars farther and reduces payroll taxes. The annual maximum contribution to the dependent care FSA is $5,000.
Did You Know? BPC offers a mobile app that allows you to get real-time account balances on the spot, view and reconcile recent transactions, communicate with BPC Specialists, and more. Visit www.bpcinc.com/mobile-app for more information.
What happens if I don’t use all of the money I set aside?
You should only contribute the amount of money you expect to pay out of pocket that year. If you do not use all of your funds, you will lose them. You have until March 15 of the following year to use the funds in your account, and you can submit claims for 2023 through April 30, 2024.
How do I enroll?
Use ESS to enroll in the Health Care FSA, Dependent Care FSA, or both. Even if you signed up last year, you must re-enroll for 2024.
Is the FSA program right for me?
The flexible spending accounts are beneficial for anyone who has out-of-pocket medical, dental, vision, hearing or dependent care expenses beyond what his or her insurance plan covers. It’s easy to determine if an FSA will save you money. At enrollment time, you will need to determine your annual election amount. Estimate the expenses that you know will occur during the year. These include out-of-pocket expenses for yourself and anyone claimed as a dependent on your taxes. If you had $100 or more in recurring or predictable expenses, the accounts can help you stretch your dollars.