Flexible Spending Accounts
Flexible Spending Accounts
Flexible Spending Accounts (FSAs) let you pay for eligible healthcare expenses with dollars withheld from each paycheck before taxes. This means you lower your taxable earnings and pay less in income taxes. You decide how much you want withheld for the plan year out of your paychecks throughout the year.
FSAs are “use-it-or-lose-it” accounts. You will forfeit any amount above $660* left in the account at the end of the plan year. You have until March 31st of the following plan year to submit for any remaining eligible FSA expenses.
Franklin Covey offers two types of Flexible Spending Accounts, administered by HealthEquity:
- Health Care FSA: The Health Care FSA gives you a tax break on many qualified expenses. You can set aside up to $3,300* each plan year on a pre-tax basis and then use those funds for eligible expenses.
- Note: You may enroll in a Health Care FSA as long as you are not enrolled in an HSA.
- Limited Purpose FSA (LPFSA). If you enroll in the UHC $2,400 HDHP, or another employer’s HSA, you may enroll in an LPFSA. This account covers only dental and vision expenses, allowing you to save your HSA funds for future medical expenses. You can set aside up to $3,300* each plan year.
*Limits subject to change by the IRS or due to legislative changes. FranklinCovey reserves the right to amend the FSA policies with HealthEquity at any time as allowed by law.
What Are Eligible Health Care Expenses?
For a complete list of eligible expenses, visit www.irs.gov and see Publication 502. Some examples may include:
- Office visits and lab work
- Prescription drugs
- Hospital stays
- Speech/occupational/physical therapy
- Dental and vision care
- Eligible over the counter medications and supplies
Reminder: Keep documentation to support your use of the money in these accounts for tax purposes.
Learn more about other FSA eligible expenses by visiting the FSA storefront.
| Health Care FSA | Limited Purpose FSA | |
|---|---|---|
| Who is the Administrator | HealthEquity | HealthEquity |
| HealthEquity | You deposit pretax money into the account through payroll deductions to pay for eligible medical, dental and vision expenses. | You deposit pretax money into the account through payroll deductions to pay for eligible dental and vision expenses only. |
| Who is Eligible | Full time associates who are not enrolled in an HSA medical option | Full time associates who are enrolled in an HSA medical plan |
| Annual Employee Contribution Limits | $3,300 | $3,300 |
| Payment Care | Debit Card | Debit Card |
| Unused Funds | Qualified expenses incurred during the plan year | Qualified expenses incurred during the plan year |
| (January 1 – December 31) are eligible for reimbursement. You must file all reimbursement requests no later than 90 days after the plan year ends. You can roll over unused funds (up to IRS limits) if you elect a Health Care FSA for the following year. All unused funds over the IRS limit after 90 days will be forfeited. | (January 1 – December 31) are eligible for reimbursement. You must file all reimbursement requests no later than 90 days after the plan year ends. You can roll over unused funds (up to IRS limits) if you elect a Limited Purpose FSA for the following year. All unused funds over the IRS limit after 90 days will be forfeited. |
Health Savings Account (HSA) vs Flexible Savings Account (FSA)
What’s the Difference?
It becomes very easy to mix up HSAs and FSAs. Below is a quick glance of the key differences between these tax-advantaged accounts that allow you to use before-tax dollars to pay for eligible expenses. For additional details about which account may be right for your circumstances, call FC Benefits Center at 855-547-8508, email [email protected] or visit HealthEquity’s Benefits Education Center to learn more about your spending account benefits and resources to tap into after your effective date.
Learn more about which account is right for you at www.healthequity.com/hsa-vs-fsa. Or watch this video.
| HSA | FSA | |
|---|---|---|
| Eligible for employer contributions | Yes | No |
| Change your contribution amount at anytime | Yes | No |
| Access your entire annual contribution amount from the beginning of the plan year | No | Yes |
| Access only funds that have been deposited | Yes | No |
| “Use it or lose it” at year-end | No | Yes |
| Money is always yours to keep, can roll over full balance amount | Yes | No |
| Ability to invest funds | Yes | No |