Learn more about the Health Care and Dependent Care Flexible Spending Accounts (FSA) offered by YES Prep and administered by PlanSource.
Flexible Spending Account (FSA)
- A Health Care FSA can be a valuable tool when it comes to paying for out-of-pocket medical, dental, and vision expenses. A Flexible Spending Account allows you to save money on a tax-free basis and set aside up to $2,500 annually for eligible expenses.
- You may contribute up to $2,500 annually and you have that full amount available at the beginning of the plan year to pay for eligible expenses. Each pay period, a pre-tax deduction will be taken out of your earnings and placed into your Flexible Spending Account.
- You will receive a debit card to use for your eligible expenses, which you can learn more about below.
- It is a use-it-or-lose-it account, so you want to budget accordingly when contributing to the plan. You are able to rollover up to $500 at the end of the plan year to the following plan year. The deadline to use funds is 08/31 of each plan year and you have a 90 day run-out period to receive reimbursements.
- Because this account provides you a tax benefit, you must keep all receipts for expenses paid with the account in the event that you need to provide proof of the claim.
- If you are on ActiveCare 1-HD, you are not eligible for this benefit if you participate in the HSA.
Dependent Care Flexible Spending Account (DCFSA)
- You can use this account to save some money for dependent care expenses if you have children (up to age 13) or an adult for whom you are the guardian.
- You have the option of electing up to $5,000 annually in this account.
- You can only use the money from this account once it has been deposited into the account from your paycheck deductions.
- It is a use-it-or-lose-it account, so you want to budget accordingly when contributing to the plan.
- The deadline to use funds is 08/31 of each plan year and you have a 90 day run-out period to receive reimbursements.
- This is a great benefit if you are eligible, but we do strongly recommend that you speak with your accountant to make sure this is a benefit that is right for you.
This guide is your one stop shop for information on coverage options and insurance rates.
YES Prep participates in a Section 125 Cafeteria Plan governed by the IRS Code. This Flexible Compensation Plan allows you to reduce your taxable income in direct proportion to (a) your contribution to the cost of your elected benefits and (b) your contribution to any account based tax advantaged plan or fringe benefit plan offered by YES Prep that is governed by the Internal Revenue Service (IRS) Code.
You can pay for a wide range of IRS-qualified medical expenses with your FSA accounts. For a complete list of IRS-qualified medical expenses, visit www.irs.gov
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