A Flexible Spending Account (Health FSA) is an IRS-approved program to help you save taxes and reimburse yourself for out-of-pocket medical expenses not covered under your medical plan.

Your employer has chosen the $500 roll-over option for your Health FSA plan. This option allows you the opportunity to roll over up to $500 of unclaimed Health FSA funds into the following plan year. Keep in mind that balances more than $500 will be forfeited under the use-it-or-lose-it rule.

Your maximum contribution amount for 2020 is $2,750.

Highlights

• Contributions are automatically deducted from your paycheck on a pre-tax basis, which helps reduce your taxable income and increase your spendable income.
• Your full election will be available to you at the beginning of the plan year.
• Be conservative – any money left in your account at the end of the plan year will be forfeited.
• Use your benefits card to pay for qualified expenses upfront so you don’t have to spend money out of pocket.
• Keep all receipts in case you need to substantiate a claim for tax purposes.