An FSA is an employer-owned spending account into which you and Crate and Barrel, your employer, can deposit pre-tax money up to the IRS annual limit. You can use these contributions to pay for qualified medical expenses, but you must use your entire balance prior to the end of the plan year otherwise any remaining money will be forfeited back to your employer. Employers can choose to allow employees to either rollover up to $610 in unused funds to the following year or they can give employees a 2 ½ month grace period after the end of the plan year in which to use their remaining money. Employers can only offer one option, but don’t have to offer either.
There are three types of FSAs
FSA eligibility requirements
FSAs work with any type of health insurance, the only requirement is that you must access an FSA through your employer. If you are married and both you and your spouse are offered FSAs through your employers, both of you may contribute to separate FSAs up to the annual limit.
You can only enroll and set your annual election amount during open enrollment, or on account of a qualifying life event.
Why have an FSA?
- They are a tax-free way to pay for qualified medical, vision, dental, and dependent care expenses. You can save up to 37% on your medical expenses (depending on your tax bracket).
- It can be paired with any type of health insurance. This enables you to build the best benefits package for you and your family.
2024 FSA contribution limits
The IRS annual limit for 2024 employee contributions to a medical FSA or Limited Purpose FSA is $3,200 regardless of whether they’re enrolled in an individual health insurance plan or a family plan.
Dependent Care: $5,000 (single or married couples filing jointly)
If both spouses have access to an FSA through their employers, both can contribute up to the annual max.
Employers can contribute up to $500 to employee Healthcare FSAs regardless of whether or not the employee contributes any money. Starting at $501, employers can only match up to dollar-for-dollar of employee contributions. Employer contributions to Healthcare FSAs are not counted towards employee annual contribution limits.
Lively's FSA Guide
This guide covers different types of FSAs, how they work, and how you can use them to help reduce the cost of health and care expenses.
Your FSA Quick Start Guide
How to quickly get set up so you can start using, and saving with, your Lively FSA.
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