A Health Care FSA (HCFSA) is a pre-tax benefit account that you can use to pay for eligible medical, dental, and vision care expenses.
Expenses covered under your HCFSA are those that are not covered by your health care plan or elsewhere.
HCFSAs are sponsored by your employer and allow you to set aside an annual amount, up to a contribution limit set by the IRS, to put toward qualified healthcare expenses. This benefit works on an annual plan year basis and is funded through regular payroll deductions on a pre-tax basis.
Most FSAs, including your HCFSA, have a use-it-or-lose-it rule, which means that any funds that are unused by the end of each year, are forfeited to the account of your employer. In other words, you lose your remaining money if you miss the deadline for spending it all, so make sure you keep track of it!
In some cases, employers have the option of offering one of two deadline extensions: the FSA Grace Period or a carryover, however, not all plans include these. You can always ask your HR department or someone from the Benepass Support team to give you more specifics about the plan.
2024 Contribution Limits
For 2024, employees with a Health Care FSA (HCFSA) may elect to contribute up to an annual maximum of $3,200 with a minimum annual election of $100.
The maximum carryover amount from the 2024 plan year into the 2025 plan year is $640, which is determined by the IRS.
2023 Contribution Limits
For 2023, employees with a Health Care FSA (HCFSA) were able to elect to contribute up to an annual maximum of $3,050, with a minimum annual election of $100.
The maximum carryover amount from the 2023 plan year into the 2024 plan year is $610, which is determined by the IRS.
Questions? We are happy to help! Please reach out to Benepass Support for any assistance.