Flexible Spending Accounts (FSAs) save you money by allowing you to set aside pre-tax dollars from your bi-weekly paycheck to help pay for eligible expenses.
There are two types of FSAs administered by HealthEquity (WageWorks): Health Care and Dependent Day Care. You can participate in both types of FSAs, but you cannot use funds in your Health Care FSA to pay for dependent day care expenses, and vice versa.
Health Care FSA
- A Health Care FSA is used to pay for qualified medical, prescription drug, dental and vision expenses.
- If you are also enrolled in a MyHealth360 medical plan with Health Reimbursement Account (HRA) funds available, you and your eligible dependents’ medical, prescription drug, dental and vision expenses will be deducted from your Health Care FSA before your HRA.
- Even if you do not enroll in the MyHealth360 medical plan, or if your dependents are not enrolled, you can still open a Health Care FSA to pay for your family’s eligible expenses.
- For 2022, the Health Care FSA minimum contribution is $100 and the maximum contribution is $2,750. You can roll over up to $550 in unused funds for use beginning in mid-March 2022.
- Use the HealthEquity Visa®Health Care Debit Card to pay for qualified expenses for you and your eligible dependents.
- This debit card is linked to your Health Care FSA and your HRA, if you are enrolled in the Piedmont Choice + HRA Plan (or if you’re enrolled in the Piedmont Exclusive Plan and have rollover HRA funds available from a prior year).
- Under IRS guidelines, even though your contributions are deducted evenly from 26, bi-weekly paychecks, the entire amount of your annual election is available on the first day that your benefits are effective.
- At any time during the year, you can use your entire Health Care FSA election.
Dependent Day Care FSA
- A Dependent Day Care FSA is used to pay for qualified child, adult or disabled dependent day care services so you can work.
- Complete and submit online or paper claims to receive reimbursement for eligible day care expenses.
- You cannot use the HealthEquity Visa®Health Care Debit Card to pay for eligible dependent day care expenses.
- Your Dependent Day Care FSA cannot be used to pay for dependent medical expenses.
- Under IRS guidelines, you can only be reimbursed for the amount you already contributed to your account.
- When filing your taxes, you may use the Dependent Day Care FSA, the federal tax credit or a combination of both. You may want to consult a tax advisor.
- For 2022, the Dependent Day Care FSA minimum contribution is $100 and the maximum contribution is $5,000. Unused Dependent Day Care FSA funds do not roll over.
- Please note: If you are a highly compensated (as defined in IRS guidance), your contributions may be further limited by the Plan’s annual nondiscrimination testing. If you make a Dependent Care FSA election that surpasses the IRS limit, you will be notified by the Benefits Department regarding any required adjustment.
What to Know About FSAs
- If you want to participate in either FSA in 2022, you must enroll.
- You can participate in both types of FSAs, but you cannot use funds in one to pay for expenses in the other.
- Pre-tax contributions are deducted from your pay in equal amounts throughout the year.
- The IRS regulates how much you can contribute to an FSA and which expenses are eligible for reimbursement.
- Visit HealthEquity or download the EZ Receipts mobile app to submit FSA claims and check account balances.
HRA and Health Care FSA
- If you enroll in the Piedmont Choice + HRA Plan and a Health Care FSA (or enrolled in the Piedmont Exclusive Plan with available HRA rollover funds from a prior year and a Health Care FSA), your eligible expenses will be deducted from your Health Care FSA first—before your HRA. Both accounts are managed through HealthEquity and accessible by using your HealthEquity Visa debit card.
- HRA dollars can be used to cover costs incurred by you and your eligible dependents, while Health Care FSA funds can be used to cover costs incurred by you and/or all family members.
- At the end of each calendar year, there is a until March 1 to submit prior year FSA claims.
- your unused Health Care FSA funds (up to $550) will roll over and be available by mid-March for use.
- For the HRA, you can roll over an unlimited amount of HRA dollars.