FSA are governed by the IRS. Below is a list of important rules that you need to be familiar with:
Expenses Must Be Prospective
You can use current plan year Healthcare FSA or Daycare FSA funds to pay for current plan year expenses but you cannot use current plan year Healthcare FSA or Daycare FSA funds to pay for expenses incurred prior to the start of the current plan year
Receipts
Be sure to keep copies of all of your receipts; including those for services paid for with the Benefits MasterCard.
Benefits MasterCard Transactions
Some transactions will require you to send a copy of your receipt after your purchases. Proficient Benefits Solutions will notify you when it’s time to send a copy.
Use or Lose Rule
Any amount that is left in your Healthcare FSA or Daycare FSA account at the end of the plan year that is unclaimed is forfeited. Plan carefully and be conservative in your estimates.
Claim Filing Deadline
There is a deadline for filing all claims. The deadline applies either at the end of the plan year or from your termination date. This deadline for filing all claims can be found in the Summary Plan Description for your employer’s plan.
For the Dependent Care Account
The most you can set aside is $5,000 if single or married and filing jointly or $2,500 if married and filing separately. The person whose expenses you are claiming must be:
- your qualifying child under the age of 13, who shares the same residence with you; or
- your spouse or qualifying child or qualifying relative who is physically or mentally unable to care for him/herself who shares the same residence with you and has income less than the federal exemption amount.