|DRBA Section 125 Maximum Annual Contributions to FSA Accounts|
|Health Care Flexible Spending Account||$3,200|
|Dependent Care Flexible Spending Account||$5,000|
All new for this year: Flexible Spending Medical Accounts have a new maximum election of PRE-TAX dollars! In the past the DRBA limitation was $2,700 per year After careful consideration, it was decided that the DRBA align with the guidance of the IRS regarding these maximums.
You may choose to set aside money in a Flexible Spending Account (FSA) on a Section 125 pre-tax basis to pay for eligible health care and dependent day care expenses. The FSA program is administered by Employee Benefits Corporation (EBC). Contributions to an FSA will be collected over 26 pays. The IRS requires that all funds set aside each plan year must be used by year-end or they are lost (“Use It or Lose It”). The plan year is January 1st – December 31st.
Health Care FSA (Full Standard):
- If you enroll in the PPO, EPO or Waive Health coverage, you may contribute up to $3,200 per year on a pre-tax basis to pay for health care expenses for you and your eligible dependents, including allowable medical, prescription, dental and vision expenses that are not covered under your employer sponsored benefits plans. Eligible health care expenses also include copays, deductibles, coinsurance, and qualified over-the-counter medical supplies. A debit card will be provided and can be used to pay for eligible expenses under the plan.
Health Care FSA (Limited Use):
- If you enroll in the High Deductible Health Plan and elect to contribute to a Healthcare FSA then you will be enrolled in a Limited Use Healthcare FSA. You may contribute up to $3,200 per year on a pre-tax basis to pay for out-of-pocket dental and vision care expenses for you and your eligible dependents not covered under your employer sponsored benefits plans. A debit card will be provided and can be used to pay for eligible dental and vision expenses under the plan.
Health Care FSA Roll Over:
- Current participants in a Health Care FSA (Full Standard or Limited Use) are eligible for a $640 roll over (2024), which allows unused balances up to the statutory maximum to roll into the next plan year, provided the participant makes a new Health Care FSA election for the new plan year.
Dependent Care FSA:
- You may contribute up to $5,000 per year on a pre-tax basis per household (check IRS guidelines if your spouse is also eligible for a Dependent Care FSA through another employer) to pay for dependent day care expenses while you and your spouse are at work, including after-school programs. You may even be reimbursed for an elderly parent’s day care if you can claim them as your dependent on your Federal Income tax returns. A debit card will be provided and can be used to pay for eligible expenses under the Plan. You MUST submit online claim forms for reimbursement if your day-care provider does not accept the debit card.