Flexible Spending Accounts (FSA) - Benchmark Plans Only
Flexible Spending Accounts (FSA’s) let you set aside a portion of your paycheck tax free to pay for certain health and dependent care expenses. Contributions are deducted from your paycheck prior to federal, state and social security taxes. You MUST re-enroll in one or both plans during open enrollment if you want to continue contributions to one or both of these plans.
There are two types of FSA accounts: a Medical FSA and a Dependent Care FSA. You can only use these accounts for the purposes that they are designated for and each account has a specific dollar limit. The FSA benefit period mirrors the benefits year. That means that the funds you set aside for this purpose can only be used for expenses incurred during the benefit year (7/1 - 6/30). Please note: these accounts are use it or lose it accounts. That means that if you do not use the money you put aside for the benefit year for its intended purpose, you lose it once the benefit year ends. The only exception to this is that a roll over of up to $570 of medical FSA money is allowed if you re-sign up for this benefit at open enrollment for the following benefit year.
Reminder - for the medical FSA, the Town of Wellesley will match any Medical FSA contribution (up to $150 per individual plan and $450 per family plan) for employees choosing a Benchmark plan.
*Please note: Medical FSA accounts cannot be used in conjunction with a High Deductible Health Plan (HDHP). Employees choosing a HDHP can use an HSA to reimburse for medical and dental expenses.
Individuals choosing a Benchmark plan will able to contribute a maximum of $2,850 to a Medical FSA on their own for the FY23 benefit year and will still be allowed to roll-over any unused funds up to a maximum of $570 into the new plan year starting on 7/1. A link to the list of eligible reimbursable Medical FSA expenses can be found in the chart below.
|FY23 Flexible Spending Overview||FSA Medical Claim Form|
|Health Care FSA Eligible Expenses List|
Dependent Care FSA - Individuals can contribute up to $5,000 pre-tax per household for dependent care needs.
Dependent care funds can be used for dependents who have not yet turned 14 until 6/30/2022.
Dependent Care FSA’s can be used in conjunction with a HDHP.
|Dependent Care Overview||FSA Dependent Care Claim Form|
Both the Medical and the Dependent Care FSA plans are administered by Cafeteria Plan Advisors. Click here to view their website for more information.
*If you have a need to be on a leave of absence for any or all of the benefit year, please click here for information on how your FSA contributions may be affected.