Which FSA plan year account will be used first during the run-out period—the new plan year election or the carryover amount from the current plan?
Any new plan year funds will pay first and the carryover funds will pay second. Employees get the best use of their funds by having the new plan year pay first, and the carryover funds pay second.
Who is a qualified dependent under the Dependent Care FSA?
- Dependent under the age of 13; or
- Dependent or spouse of employee who is mentally or physically disabled and whom the employee claims as a dependent on his or her Federal Income Tax return.
16 things you had no idea you could purchase with your FSA
16 things you had no idea you could purchase with your FSA
January 29, 2019
Flexible Spending Accounts may be more flexible than you realized, and you don’t want to miss out. 2019 is expected to be an even bigger year for FSAs than the last, with 32 million accounts expected to open according to MarketWatch. What you may not know is there are several health-related necessities you can purchase using your FSA.
Because many FSAs have a “use-it-or-lose-it”” policy, at the end of each year users will lose any funds in the account that exceed $500. Using funds on these household products could prevent you from having unused funds and forfeiting them at the end of the year.
Items vary from first aid basics to personal care and while there are several, we’ve first listed 10 common products many people use that can be purchased with FSA funds. These items also don’t require a prescription from a doctor to be FSA-eligible.
Batteries
Lip balm
Reading glasses and contact lenses
Shoe insoles
Prenatal vitamins
Sunscreen
Thermometer
First Aid Kit
Hot/cold packs
Neck pillows
Local drug stores and pharmacies offer many of these products. There is also an online store with the above products, and many more, that are all FSA-eligible. You can make these purchases from your account without a prescription. As many individuals use these products regularly and will purchase them anyway, it becomes a perfect use of already allocated funds.
Purchasing these items is also a productive way to ensure you always have the supplies to maintain a healthy lifestyle. Many of these products assist with preventive care measures and encourage proactive self-care. Being proactive at home can help you save on medical costs in the future, which means your FSA is doing its job.
While the products listed above are frequently used by many Americans, there are other more specific medical items that are also FSA-eligible without a prescription. These 6 objects could be helpful for people with more specific medical conditions or needs.
Wheelchairs or other walking aids, such as crutches
Blood glucose monitors and testing strips
Compression socks
Blood pressure monitors
Motion sickness aids
Incontinence products
Braces (athletic or orthopedic)
Additionally, there are even more products that are FSA-eligible with a prescription from a doctor. To learn more about what is considered an FSA-eligible expense, you can revisit your NueSynergy FSA welcome kit or call us today at 855.890.7239.
IRS Announces 2019 Increases to Flex Benefit Contribution Limits
IRS Announces 2019 Increases to Flex Benefit Contribution Limits
November 15, 2018
The IRS has announced the 2019 contribution maximums for Flexible Spending Account (FSA) plans in the newly released Revenue Procedure 2018-57. Contribution limits increased for the Health FSA, Commuter Benefits and Adoption Assistance program, while limits for the Dependent Care FSA remained unchanged.
Health Flexible Spending Account
The Health FSA, which provides employees the ability to set aside money on pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $2,650 to $2,700 for 2019. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses.
Commuter Benefits
Commuter Benefits help employees pay for certain parking, mass transit and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $260 to $265 for 2019.
Adoption Assistance
The Adoption Assistance FSA helps employees pay eligible adoption expenses such as agency fees and court costs by contributing to the account with pre-tax money from their paycheck. The contribution limits for this account will increase from $13,840 to $14,080 for 2019.
2018 and 2019 Contribution Amounts
Benefit 2018 | 2019
Health FSA $2,650 | $2,700
Limited Purpose FSA $2,650 | $2,700
Dependent Care $5,000 | $5,000
Parking/Transportation $260 / $260 | $265 / $265
Adoption Assistance $13,840 | $14,080
Questions? Contact us at 855.890.7239 or send an email to customerservice@nuesynergy.com.