Flexible Spending Accounts (FSAs)

FSAs allow you and/or your employees to set aside pre-tax dollars to cover eligible medical, dental, and vision expenses for themselves or dependents not covered by their primary health plan. There are rollover or grace period options for added flexibility.

Whether funded by the employer or employee, contributions are pre-tax, thereby reducing payroll tax expenses for the company and personal taxes for the employee. A maximum annual contribution of $2,850 is allowed and funds are available for employee use on Day 1. FSAs allow for a rollover amount ($570 in 2022) or a two-and-a-half month grace period, providing employees with greater flexibility and more time to use their funds. Unused (non-rollover) funds belong to the employer at the end of the plan year. Employees must be W2 and offered major medical.

FSAs are very family-friendly, allowing your employees to cover expenses for themselves, their spouse and taxable dependent. They include Medical Spending Accounts and Dependent Day-Care  spending Accounts. Employees enjoy reimbursement of a significant number of out-of-pocket expenses not covered by their primary health plan, including deductions and co-pays, prescription and OTC drugs, dental and vision, mental health, and infertility. Prescription discounts also are available.

  • Employer- and/or employee-funded
  • Pre-tax contributions
  • Wide variety of reimbursements*
  • Prescription discounts
  • Employer retention of unused funds
  • Customized cards and portal
  • Mobile app and digital wallet

*As defined by the IRS section 213D