FSAs Overview

2020 and 2021 Plan Year Information

FSAs

Flexible Spending Accounts (FSAs) allow you to set aside before-tax money to use for certain eligible expenses not covered by your health plans or to pay for certain dependent day care expenses. Using an FSA can save you from 20% to 40% depending on your tax bracket.

The Firm offers three types of FSAs: a Health Care FSA, a Limited Purpose FSA* and a Dependent Day Care FSA. The Health Care and Dependent Day Care FSAs are administered by UnitedHealthcare (UHC). The Limited Purpose FSA is administered by Your Savings Account.

*The Limited Purpose FSA is only available to employees enrolled in Medical Plan Option C and can only be used for eligible dental and vision expenses.

Health Care FSADependent Day Care FSALimited Purpose FSA
Who Can Enroll?

All employees not enrolled in Medical Plan Option C, even those who are not enrolled in any other Firm benefits

All employees, even those who are not enrolled in any other Firm benefits

Only employees enrolled in Medical Plan Option C

How Much Can I Contribute? (determined by the IRS each year)

Between $100 and $2,750

If you are single or married and filing a joint tax return, between $100 and $5,000 annually (lower limits may apply in certain circumstances). If you are married and file separate tax returns, you may contribute between $100 and $2,500 annually.

Up to $2,750 annually

What Can the FSA Money Be Used For?
  • Medical
  • Prescription drugs
  • Dental
  • Vision

Funds for:

  • Child care
  • Elder care
  • Preschool
  • Afterschool

NOTE: Funds apply to eligible expenses for eligible dependents age 13 and under or disabled or elderly dependents.

  • Dental
  • Vision
What Are the Deadlines?

2020

  • Incur expenses by December 31, 2020.
  • Submit expenses by April 30, 2021.

2021

  • Incur expenses by December 31, 2021.
  • Submit expenses by April 30, 2022.
    Effective in 2021, you may roll over up to $550 of your remaining 2021 Health Care FSA balance to the following Plan year as long as you remain enrolled in a Health Care FSA for 2022 and are not enrolled in Medical Plan Option C.

2020

  • Incur expenses by December 31, 2020.
  • Submit expenses by April 30, 2021.

2021

  • Incur expenses by December 31, 2021.
  • Submit expenses by April 30, 2022.

2020

  • Incur expenses by December 31, 2020.
  • Submit expenses by April 30, 2021.

2021

  • Incur expenses by December 31, 2021.
  • Submit expenses by April 30, 2022.

Which Account(s) Should I Participate In?

Depending on your needs, you may decide to participate in one or more accounts. Since your total FSA contribution is taken from your pay before federal income taxes are deducted, your taxable income is reduced by the amount of your contribution. So, the more you contribute, the more you save.

First consider your health care spending. If you are enrolled in Options A or B, or enrolled in an eligible plan through another employer or exchange, consider your typical annual out-of-pocket medical, prescription drug, dental and vision spending. You could save money by paying for things like copays, coinsurance and prescription drugs with a Health Care FSA. For employees enrolled in Option C, you have the option of paying for medical, prescription drug, dental and vision care expenses with an HSA, but can further your savings on dental and vision expenses by adding a Limited Purpose FSA.

Next, consider your dependent day care expenses. Any employee can contribute to a Dependent Care FSA, which can be used to pay for eligible child and adult care services, such as child or adult day care, after-school care, au pair or nanny services, camp, or disability care. Consider contributing enough to cover your estimated expenses, up to IRS maximums.

Deposit Funds Directly into Your Checking Account

Make it easy — elect direct deposit from UHC’s website to have your Health Care and Dependent Day Care FSA reimbursements deposited directly into your U.S. checking or savings account. This way, you will not have to wait for the reimbursement for each claim in the mail.

Use It or Lose It

By law, any money in your Dependent Day Care or Limited Purpose FSA that you do not use by the end of the year, or submit a claim for by April 30 of the following year, will be forfeited.

Beginning in 2021, you have the option to roll over up to $550 of your unused Health Care FSA funds for use in the following year. Any rollover amount elected will be forfeited if you enroll in Medical Plan Option C for the following year.

Estimate your projected health care and dependent day care expenses and potential tax-savings with the FSA Calculator on the Benefit Center website.

Health Care Flexible Spending Account: Rollover of up to $550

If you participate in a Health Care FSA, IRS regulations permit the forfeiture of any unused funds remaining in the account at the end of the Plan year. However, a maximum of $550 of your remaining health care FSA funds may automatically roll over into your account for the next plan year. The balance up to $550 will automatically roll over into your Health Care FSA for 2022 assuming you make an active election to participate in a Health Care FSA and do not enroll in Medical Plan Option C for coverage.

You have until April 30 of the following year to request reimbursement for eligible expenses incurred during the current plan year.