Flexible Spending Account (FSA) Provided By Our Agency

Flexible spending accounts (FSAs) are another type of employee benefit, in this case, solely designed to save employees money through pre-tax savings on eligible healthcare expenses. Setting up an account is another employee perk that will keep existing staff in the company's favor and help attract top talent later.

What is a Flexible Spending Account (FSA)?

A flexible spending account (FSA) is a type of savings account that provides the account holder with specific tax advantages. An FSA, sometimes called a "flexible spending arrangement," can be set up by an employer for employees. The account allows you to contribute a portion of your regular earnings; employers also can contribute to employees' accounts. Distributions from the account must be used to reimburse the employee for qualified expenses related to medical and dental services.

Another type of FSA is a dependent-care flexible spending account. It is used to pay for childcare expenses for children age 12 and under and can also be used to care for qualifying adults, including a spouse, who cannot care for themselves and meet specific Internal Revenue Service (IRS) guidelines. A dependent-care FSA has different maximum contribution rules than a medical-related flexible spending account.

What expenses are eligible for Flexible Spending Account reimbursements?

Any expense considered a deductible medical expense by the Internal Revenue Service and not reimbursed through your insurance can be reimbursed through the Flexible Spending Account. Examples include:
  • Fees paid to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and Christian Science practitioners
  • Contact lenses and eyeglasses
  • Fees for hospital services, qualified long-term care services, accident and health, and qualified long-term care insurance premiums, nursing services, laboratory fees, prescription medicines, drugs, and insulin.
  • Acupuncture treatments
  • In-patient treatment at a center for alcohol or drug addiction
  • Smoking-cessation programs and prescribed drugs to help nicotine withdrawal
  • False teeth, hearing aids, crutches, wheelchairs, and guide dogs for the blind or deaf (And more. Read over your FSA benefit documentation to make sure you know what is and isn't covered. Keep receipts for everything you spend that you plan to seek reimbursement for later.)

All the money set aside in an FSA generally must be used by the plan year's end. However, a plan can offer a grace period of up to two-and-a-half months to finish using that funding.

When the year ends or the grace period expires, any funds that remain in the FSA are lost. Thus, your employees should carefully calibrate the amount of money they plan to put into the FSA account and how they intend to spend it over the course of the year.

Setting up an account is another employee perk that will keep existing staff in the company's favor and help attract top talent later. Although these employer benefit plans can sometimes be confusing, we can help plan this better for you and your organization. Connect with us to know more!

Already have Flexible Spending Account (FSA)? Switching is easy

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.