by Lexi Garcia | Nov 10, 2023 | Blog
The IRS announced 2024 contribution limits for all Flexible Spending Account (FSA) plans. Below is an overview of the limit increases across all the types of FSAs except for Dependent Care FSAs, which remain the same at $5,000 per year.
Health Flexible Spending Account
The Health FSA, which provides employees the ability to set aside money on a pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $3,050 to $3,200 for 2024. The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses. Limited Purpose FSA
limits will also increase from $3,050 to $3,200 for 2024.
Carryover Limit
The FSA Carryover limit provides employers the option to transfer a maximum amount of remaining FSA balances at a plan year’s end to carryover for use during the next plan year. This is available with Healthcare and Limited Purpose FSAs only. The carryover limits for this account will increase from $610 to $640 for 2024.
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 $300 to $315 for 2024.
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 $15,950 to $16,810 for 2024.
For more information about this major change and how it may impact you, read our latest handout.
by admin | Dec 15, 2022 | Blog
A Commuter Benefits Flexible Spending Account (FSA) is an employer-sponsored account that allows participants to set aside pre-tax funds to pay for qualified mass transit and parking expenses associated with their work commute. There are two Commuter Benefit accounts: transportation and parking. Each of these accounts may receive a monthly contribution limit of $300, starting in 2023.
What to know about this account
- You must have funds in a commuter benefits account before using
- Any unused funds in a transportation and/or parking account will be lost at the end of the plan year
- Adjustments to a contribution can be made at any time; termination included
- You can manage this account online at www.NueSynergy.com or via the NueSynergy smart mobile app
Questions to consider
Why should I enroll in a Commuter Benefits account?
This account is ideal if you expect to incur commuter expenses that won’t be reimbursed by another plan. Money contributed to a Commuter Benefits account is free from federal and state taxes and remains tax-free when spent on eligible expenses.
What expenses are eligible for this account?
This all depends on which commuter account you plan on choosing. For a transportation account, expenses such as transit passes, tokens, fare cards, vouchers or items entitling you to ride a mass vehicle are eligible. For a parking account, eligible expenses consist of parking expenses incurred at/near place of work and out-of-pocket parking fees for parking meters and lots.
How do I use my Commuter Benefits FSA to pay for eligible expenses?
You can either use the NueSynergy smart debit card or pay your personal funds and submit a claim reimbursement.
by admin | Dec 13, 2022 | Blog
A Limited Purpose Flexible Spending Account (LPFSA) is an account designed to allow participants to set aside pre-tax dollars for dental, vision and orthodontia expenses for themselves and their dependents. As mentioned earlier, the benefits of enrolling in a LPFSA are limitless.
Below is a list of eight pre-taxable items a participant can use to fund their Limited Purpose FSA.
1. Artificial teeth
2. Dental treatment: x-rays, fillings, dentures, root canals
3. Dental co-insurance, co-payments, and deductibles
4. Eye surgery (includes cataract and LASIK)
5. Vision co-insurance, co-payments, and deductibles
6. Prescription eyeglasses, sunglasses, and over-the-counter reading glasses
7. Contact lenses, solution, equipment, and materials
8. Occlusal guards
To learn even more about LPFSA-eligible items, check out our extensive list.
by admin | Nov 29, 2022 | Blog
With the contribution limits set to increase for Flexible Spending Accounts (FSAs) in 2023, now is a good time to debunk any myths that are often associated with FSAs. Here are easy to understand answers to common FSA questions.
Will I lose the money in my FSA if I don’t use it?
Not if you plan properly. You can utilize the carryover option, which allows you to carryover as much as $610 in unused funds from an existing plan to the next.
How is my FSA funded?
It is funded by your employer. Based on how much you decide to contribute (up to $3,100), your employer then places the contributed amount into your account and deducts equal amounts from your paycheck each pay period.
When is my FSA funded?
Your full year’s contribution is available on the first day of the plan year, even though you pay it back through payroll deductions throughout the year. Think of it as an interest-free loan.
Who owns my FSA?
Your employer. However, any unused funds go back to them if you leave the company.
What expenses are eligible for my FSA?
Eligible expenses include out-of-pocket costs not covered by an insurance plan, notably copayments, deductible expenses, coinsurance, and prescriptions. Costs for healthcare products and services are also eligible.
by admin | Nov 29, 2022 | Blog
During the first week of November, the IRS announced 2023 contribution limits for all Flexible Spending Account (FSA) plans. Below is an overview of the limit increases across all the types of FSAs except for Dependent Care FSAs, which remain the same at $5,000 per year.
Health Care Flexible Spending Account (HCFSA)
This account provides employees the option to set aside money on a pre-tax basis to pay for eligible medical, dental and vision expenses. The maximum contribution limit is set to increase from $2,850 to $3,050. This new amount will also apply to Limited Purpose FSAs.
Carryover Limit
The FSA Carryover allows employers the ability to transfer a maximum amount of remaining FSA balances from a current plan year for use in the following plan year. This is available for Health Care and Limited Purpose FSAs only. The limit increase to this account is now $610, compared to 2022’s limit of $570.
Commuter Benefits
This account helps employees pay for certain parking, mass transit and/or vanpooling expenses using pre-tax dollars. The contribution limits will increase from $280 to $300.
Adoption Assistance
An Adoption Assistance FSA assists employees in paying for adoption expenses such as agency fees and court costs. The contribution limit for this account is now $15,950, up $1,060 dollars from the 2022 amount ($14,890).
For more information about this major change and how it may impact you, read our latest handout.
