About Flexible Spending Accounts
Key Takeaway
A flexible spending account (FSA) allows employees to pay for qualified medical, dental, vision, or dependent care expenses with pre-tax dollars. Pre-tax means before state, federal, Social Security, and Medicare taxes are applied.
How It Works
Prior to each plan year, employees elect how much they would like to have taken out of their paycheck on a pre-tax basis. Contributions are deducted from each payroll. The amount contributed should be carefully considered, as unused amounts are generally forfeited at the end of the plan year. FSAs may include an optional carryover provision. Review your employer’s plan document to learn about plan details. Log into your plan and click on Tools & Support.
As eligible expenses are incurred, employees submit claims to Alerus for reimbursement. Alerus is required to substantiate each claim by reviewing receipts, explanation of benefits, and/or claim forms to ensure expenses meet applicable regulations. Alerus reimburses employees by check or direct deposit. Your plan may also include a debit card for making purchases directly.
Important Facts
- New elections are required each plan year.
- Elections are irrevocable during the plan year unless there is a qualified change in status.
- For current limits, please check the Plan Document. Log in to your plan and click on Tools & Support.
Types of Flexible Spending Accounts
There are several types of FSAs available for specific purposes. Check with your employer or review your enrollment materials to determine which plans are available to you.