More information about FSAs can be found at IRS.gov in Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Interested employees should check with their employer to see if they offer an FSA. Your MAGI amount for 2022 is less than 223,410. Employers can offer either option (not both) or no option.Įmployers are not required to offer FSAs. In 2022, the following events occur: (a) You pay 14,890 of qualified adoption expenses in connection with an adoption of an eligible child (b) your employer reimburses you for 4,890 of those expenses and (3) the adoption becomes final.For example, March 15, 2020, for a plan year ending on December 31, 2019. Under the grace period option, an employee has until two and a half months after the end of the plan year to incur eligible expenses.For example, an employee with unspent funds at the end of 2019 would still have those funds available to use in 2020. Under the carryover option, an employee can carry over up to $500 of unused funds to the following plan year. expenses are eligible for reimbursement through your FSA as long as they are not reimbursed through insurance or any other source.However, employers can, if they choose to, offer an option for participating employees to have more time to use FSA money.
Under the FSA use-or-lose provision, participating employees normally must incur eligible expenses by the end of the plan year or forfeit any unspent amounts. Interested employees should check with their employer for details on eligible expenses and claim procedures. Also covered are services ranging from dental and vision care to eyeglasses and hearing aids. These can include co-pays, deductibles and a variety of medical products. Throughout the year, employees can use FSA funds for qualified medical expenses not covered by their health plan.
If the plan allows, the employer may also contribute to an employee's FSA. You can use your Health Care FSA (HC FSA) funds to pay for a wide variety of health care products and services for you, your spouse, and your dependents. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax. Self-employed individuals are not eligible.Īn employee who chooses to participate can contribute up to $2,750 through payroll deductions during the 2020 plan year. WASHINGTON - With health care open season now under way at many workplaces, the Internal Revenue Service today reminded workers they may be eligible to use tax-free dollars to pay medical expenses not covered by other health plans.Įligible employees of companies that offer a health flexible spending arrangement (FSA) need to act before their medical plan year begins to take advantage of an FSA during 2020.
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