Help employees put money aside for everyday medical expenses and large healthcare expenditures
We deliver value
Flexible Spending Accounts
Flexible Spending Accounts (FSAs) are employer-sponsored healthcare spending accounts that allow employers and employees to contribute funds with tax-free dollars up to a certain amount. Employees can use the funds to pay for out-of-pocket medical expenses and FSA-eligible products and services.
An FSA can be used to pay for prescriptions, approved over-the-counter (OTC) medications, and diabetes supplies. Employees can also use medical FSA funds to cover expenses such as dental care, vision care, and medical copayments. In addition, a dependent care FSA helps cover the cost of care for children and dependent adults who require daycare services.
James Campbell & Associates (JCA) can assist you in offering employees an FSA. With an FSA, the money put aside is tax-free so employees save when they use the funds; an employee can borrow against an FSA; the money set aside for medical expenses provides peace of mind for important healthcare needs; and employers can choose to contribute to the fund.
FSA Federal Rules
FSAs can vary depending on the health insurance plan and your employer-sponsored benefits package, but all FSAs are required to follow specific federal guidelines:
- Health FSA contributions are limited to $3,200 in 2024. A married couple can put $3,200 each into separate FSAs with separate employers.
- Dependent care contributions are limited to $2,500 for married couples filing taxes separately and $5,000 if single or married and filing taxes jointly.
- FSA funds can be spent only on the employee, spouse, or dependents’ medical, dental, and daycare expenses.
- FSAs can be used to cover only certain medical and dental expenses.
- FSA funds can be used to pay for deductibles and copayments but not for insurance premiums.
- The funds in the health FSA generally musted be used within a calendar year. As an employer, you may offer two optional rollover options: a 2.5-month grace period or a $640 rollover allowance.
Our staff at JCA will review in detail the different types of FSAs with you and the various regulations that govern them.
We’re Ready
to Help You
Our commitment is to provide clients with the tools, resources, and strategies to make fully informed decisions regarding benefit plans – for the protection and well-being of their most critical asset: their employees, and families.
For more information about how we can make a difference for your business and employees, give us a call at (850) 561-8700.