Consolidated Administrative Services
Flexible Spending Accounts (FSAs) allow you to have pre-tax money deducted from your paycheck to reimburse yourself for certain expenses. Since contributions are made through payroll deductions with pre-tax dollars, you decrease your taxable income and thereby increase your take-home pay.
The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) is $2,750 for 2021 & 2022.
With the passage of the CARES Act (COVID-3 Stimulus Bill), effective 1/1/2020, the IRS will allow Over-the-Counter (OTC) medicines or drugs to be purchased with Health Care FSA or HSA funds without a prescription. Using your flexible spending account just got a lot more flexible. Newly eligible items include antacids, pain relievers, cold & flu medication, menstruation products, digestive aids, antibiotics, and antiseptics. See an updated list of allowable expenses.
For the year ending in 2021, all unused funds will carryover to the next plan year. Regularly, five hundred-fifty dollars ($550.00)can be carried over to the next plan year. The rollover will not change the Run-Out Period.