A Health Flexible Spending Account (FSA) is an IRS-approved program to help you save taxes and pay for out-of-pocket medical expenses not covered under your medical plan. You have a 2-month grace period to use your funds. This means that instead of your funds being unavailable after December 31, 2024, you can continue to incur claims through March 1, 2025, of the next year which are reimbursable using your remaining FSA balance. These claims must be submitted no later than May 30, 2025, for reimbursement. Keep in mind that remaining balances after the grace period is exhausted will be forfeited under the use-it-or-lose-it rule.

Your maximum contribution is $3,050 for 2024.

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 with be forfeited.
• Use your benefits card to pay for qualified expenses upfront so you don’t have to spend money out of pocket.
• Per IRS a household cannot contribute to the FSA and HSA within the same year.