Flexible Spending Accounts Don’t Roll Over
Flexible Spending Accounts (FSAs) help you save money by allowing you to deduct tax-free dollars from your pay to cover certain health and dependent care expenses you incur during the year. You must enroll each year during Annual Enrollment to renew your participation in these accounts. Your contribution selections for 2011 will not roll over.
We offer a Health Care Flexible Spending Account and a Dependent Care Flexible Spending Account, which are both administered by WageWorks. Tax rules by the IRS govern how FSAs can be used, including how much you can contribute, what are consider eligible expenses, and when you can use your FSA.
You may contribute up to $5,000 a year to the Health Care FSA, and $5,000 a year (if filed jointly) for a Dependent Care FSA. For a list of eligible expenses for both FSAs, go to the Benefits Web site.
The IRS also requires that FSA plans are "use it or lose it" benefits, meaning you will forfeit any funds remaining in your FSA at the end of the calendar year. So, you want to make sure to carefully estimate expenses for you and your eligible dependents in order to use all FSA contributions before the end of 2012. You will only be reimbursed for expenses you incur during that time. You have until April 30, 2013 to request reimbursement for expenses you incurred during 2012.
To learn more about FSAs, click here.