An FSA can be used for medical expenses, dental care and vision care. The amount you decide to contribute to the account for the year is deducted from your salary before income taxes. This reduces your taxable income, saving you money on taxes.

Healthcare Flexible Spending Account (FSA) annual contributions are capped at $2,750 per Plan Year (indexed for inflation), per employee, as set forth by the Patient Protection & Affordable Care Act (PPACA).

The following guidelines apply to this healthcare regulation:

• The limit applies only to employee salary reduction contributions to a Health FSA. (Employer contributions are not included when calculating this limit.)
• Limit is for the Plan Year, per employee.
• Husband and wife can both elect the maximum in their respective Health FSAs (even if working for the same employer).
• Employees changing jobs can elect up to the limit in their prior employer’s Health FSA and up to the limit in their new employer’s Health FSA as long as the employers are not related entities.
• Rehired employees and employees with a qualifying change in status mid-year are limited to the maximum for the entire Plan Year.
• Limit must be pro-rated based on the number of months for short Plan Years (Plan Years less than 12 months).
• Limit is indexed annually for cost of living adjustments.

Healthcare-only FSA funds may only be used for eligible expenses under your Healthcare FSA. Some eligible expenses include:

• Medical care services
• Dental care services
• Vision care expenses
• Prescriptions

It is important to be conservative in making elections because unused funds left in your account at the close of the Plan Year are not refundable to you and are returned to your employer.

You are urged to take precautionary steps to avoid having left over funds in your account at year-end, such as tracking account balances via the following methods:

• TASC website (www.tasconline.com)
• MyTASC Mobile App (www.tasconline.com/mobile)
• Interactive Voice Response (IVR) phone system (608-241-1900 or 800-422-4661)

Need help calculating your FSA savings and how much to contribute?

Use our handy FSA Savings Calculator under Resources on our website at: www.tasconline.com/tasc-calculators/

Tools and Resources