Understanding the Flex Spending Account Deadline

The deadline to use up your flex spending account (FSA) funds is usually December 31st of each year, but this can vary depending on your employer's plan.

If you don't use up your FSA funds by the deadline, you'll forfeit the remaining balance, so it's essential to plan ahead.

To avoid losing your FSA funds, make a list of necessary expenses, such as medical copays, prescriptions, and over-the-counter medications, and prioritize them before the deadline.

A flex spending account, or FSA, is a type of savings account that allows you to set aside a portion of your income on a tax-free basis for qualified medical expenses.

You can use your FSA to pay for a wide range of medical expenses, including prescriptions, copays, and even some over-the-counter medications.

FSAs are usually offered by employers as a benefit to their employees, and you can contribute up to a certain amount each year, which is typically determined by the IRS.

If you don't use all the money in your FSA by the end of the year, you'll lose it, so it's essential to plan ahead and use your funds wisely.

FSAs have some specific rules and requirements, such as needing to be used for qualified medical expenses, which can be found in the IRS guidelines.

Unused contributions will carryover to the next plan year for you to use. During the plan year runout period, the previous year funds may still be used for previous year expenses.

The carryover limit varies, but for 2024 into 2025, it's $640, and for 2025 into 2026, it's $660. Any remaining funds above this limit will be forfeited to the HCA.

You can use carryover funds to establish a new FSA or Limited Purpose FSA for the next plan year. If you don't enroll in an FSA, carryover funds will still be available to establish a Limited Purpose FSA.

The grace period allows an additional 2 1/2 months to incur dependent care or adoption-related expenses. You can use any funds remaining in your account after the plan year ends to pay for expenses incurred between January 1 to March 15 of the following year.

Claims must be submitted by the March 31 deadline. Any remaining funds up to the carryover limit will then carryover into the current plan year's account balance after the runout period end date.

You must incur all expenses by the end of the plan year, December 31, to be eligible for reimbursement. This is a hard deadline, so make sure to plan accordingly.

You'll need to submit all claims to Navia Benefit Solutions for reimbursement by March 31 of the following year. This deadline applies to everyone, regardless of employment status.

If you lose coverage or go on unpaid leave, you'll no longer be eligible to contribute to your FSA. This typically happens on the last day of the month you lose coverage or go on leave that is not FMLA or military leave.

FSAs allow you to set aside pretax money from your paycheck to pay for out-of-pocket health care expenses.

By reducing your annual taxable income, you'll save on FICA and federal income taxes. This can add up to a significant amount over time, especially if you're in a higher tax bracket.

Your election will be deducted from your paycheck pre-tax throughout the plan year, so you don't pay taxes on your elected dollars until you file your taxes.

You must incur all expenses by December 31 of the plan year and submit all claims to Navia Benefit Solutions for reimbursement by March 31 of the following year.

You can still submit claims for reimbursement until March 31, so long as the services took place while you were employed, even if you're no longer employed or have retired.

Eligibility to contribute to your FSA ends on the last day of the month you lose coverage or go on leave that is not FMLA or military leave.

You will be able to claim expenses that were incurred only while you were employed, unless you're eligible to continue your FSA under PEBB Continuation Coverage.

If you don't use all of the money in your FSA for expenses incurred between the date your coverage is effective and the grace period deadline on March 15 of the following year, you lose the unused portion.

You must submit claims for reimbursement by March 31 of each year to avoid losing your money.

Parking is a valuable benefit that can help with daily commute expenses. Unused contributions may be carried over to the following calendar year.

If you have a Parking FSA, you're allowed to reimburse for parking associated with your daily commute.

Unused contributions from your Parking FSA can be carried over to the next calendar year.

The Flex Spending Account (FSA) is a state employee benefit that saves you money by allowing you to pay for certain expenses with pre-tax dollars.

There are three negotiated benefits to state employees: Health Care Spending Account (HCSA), Dependent Care Advantage Account (DCAA), and Adoption Advantage Account (Adoption).

The HCSA allows you to pay any amount from $100 to $3,300 for health-related expenses with tax-free dollars.

The DCAA allows you to pay for up to $5,000 custodial care for a dependent child under the age of 13, elder care, or disabled dependent care expenses with tax-free dollars.

The Adoption Advantage Account allows you to pay for adoption-related expenses of an eligible child with tax-free dollars.

No fees are charged to employees who participate in the FSA program. The FSA is funded by the Office of Employee Relations in cooperation with the state public employee unions, and the Legislature and Unified Court System also contribute on behalf of their employees.

The services of an FSA administrator, Total Administrative Services Corporation (TASC), are retained by the State of New York to manage the Flex Spending Account.

If you're eligible for a Healthcare FSA, you can be reimbursed for qualified medical, dental, or vision expenses not covered by insurance. These expenses can include copays, prescriptions, eyeglasses, and dental services, including orthodontics.

The maximum amount you can carry over to the following calendar year is $640 in 2024 or $660 in 2025 of your unused Healthcare FSA contributions. This can be a big help if you have ongoing medical expenses or want to save for future care.

You can use your Healthcare FSA debit card to pay for these expenses, or you can submit a claim form to Navia for reimbursement. Either way, it's a great way to save money on out-of-pocket medical costs.

Limited Purpose FSAs are a type of FSA that allows reimbursement for qualified dental or vision expenses. You're eligible to enroll in a Limited Purpose FSA if you participate in a Health Savings Account (HSA), Plan C, or N.

Up to $640 (2024) or $660 (2025) of unused Health Care FSA contributions can be carried over to the following calendar year. This carryover feature gives you flexibility to spend your FSA funds at a future date and reduces the likelihood of forfeiting unused funds.

You can carry over up to $640 (2024) or $660 (2025) of remaining FSA funds into the next plan year, which can be used for qualified medical expenses incurred during that year. This carryover will not count against your annual election.

The cumulative carryover balance from year to year cannot exceed $640 (2024) or $660 (2025). Remaining Health/Limited FSA funds will automatically be carried over to the type of FSA in which you are currently enrolled, as long as the balance is $25 or greater.

If the balance is below $25, funds will not automatically carry over and will only be accessible during the run-out period. After the run-out period, any remaining balance will be forfeited.

Dependent Care FSA funds do not roll over, so be sure to submit your dependent care expenses on time to avoid losing them. The deadline to submit your dependent care expenses for the 2024 Plan Year is April 30, 2025.

Dependent Care is a type of Flex Spending Account that allows reimbursement for expenses related to caring for dependents.

You can use a Dependent Care FSA to reimburse yourself for daycare expenses, such as those incurred at daycare centers, before/after school care, or adult daycare centers.

A Dependent Care FSA can be used to cover expenses for dependents under the age of 13 or adult dependents who are physically or mentally incapable of self-care.

The deadline to submit Dependent Care claims against your 2024 Plan Year balance is April 30, 2025.

Funds in a Dependent Care FSA do not roll over to the following year, so be sure to use them before they expire.

You have a 75-day grace period to continue incurring expenses up until March 16, 2025, after which you can submit your claims.

A Mass Transit FSA allows reimbursement for qualified mass transit tickets or passes, or State of Kansas Vanpools. Unused contributions may be carried over to the following calendar year.

There are different types of FSAs, each with its own set of rules and uses.

Unused contributions to a Health FSA can be carried over to the following calendar year, but only up to a certain amount.

If your election change, claim, or other request is denied, you have the right to appeal the decision. You can do this by sending a written request to the FSA administrator, which can be done by contacting customer service for information on how to submit your appeal.

Your appeal must include a completed Appeal Form, an appeal letter, a copy of the denied request, proof of expenses, and any additional relevant documents or information. You'll also need to include any supporting documentation that may be necessary to review your case.

If your appeal is approved, your account will be adjusted as soon as possible. Appeal decisions are based on whether your circumstances and supporting documentation are consistent with the FSA rules and IRS regulations governing the plan.

Contributions to the FSA may reduce your social security taxes, but this could result in slightly lower social security benefits at your retirement age. However, the effect will be minimal and likely offset by the amounts saved in taxes today.

Your New York State pension contributions and benefits won't be affected by participating in the FSA program.

Most employees' contributions to the New York State Deferred Compensation Plan will be unaffected by FSA participation, but in some cases, it may affect you, resulting in a lower deferred compensation contribution based on a lower salary amount.

Contributions to the State University of New York's tax-deferred annuity plan are not affected by FSA participation.

If your election change, claim, or other request is denied, you have the right to appeal the decision.

You'll need to submit a written request to the FSA administrator, and you can get the necessary information from their customer service team.

The appeal must include a completed Appeal Form, an appeal letter, a copy of the denied request, proof of expenses and other documentation if the original was insufficient, and any additional relevant documents or comments.

Your appeal will be reviewed once it and the supporting documentation are received.

You'll be notified of the results of the review within 30 business days from receipt of your appeal, unless it's an unusual case that requires additional documentation.

If your appeal is approved, your account will be adjusted as soon as possible.

The appeal decision is based on whether your circumstances and supporting documentation are consistent with the FSA rules and IRS regulations governing the plan.

Here are the required documents for an appeal: