Health Care Flexible Spending Account (HCFSA)
NEW FOR 2024: Fidelity will be the new Flexible Spending Account (FSA) vendor
Health Care and Dependent Care FSAs will be administered by Fidelity, replacing Health Equity. You’ll now have access to your FSA account balance and claim verifications, along with information and resources for your other Fidelity-administered plans and programs at NetBenefits. If you’re enrolled in an FSA, you’ll receive a new debit card at your mailing address by Jan. 1, 2024. You should continue to use your Health Equity card for any expenses incurred through Dec. 31, 2023.
You can contribute pre-tax money each year (up to certain IRS limits) to a Health Care Flexible Spending Account (HCFSA) for reimbursement of eligible health care expenses. Keep in mind, all eligible expenses must be incurred between Jan. 1 and Dec. 31 of the plan year for which you elected the FSA; or the effective date of your HCFSA if elected after Jan. 1 due to being newly eligible. Consult IRS Publication 502 for details.
FSAs can help you save money on your taxes by allowing you to use pre-tax dollars to pay for eligible expenses.
You can use the HCFSA to pay for eligible expenses not covered by your medical, dental, or vision plans. For example, deductibles, copays, coinsurance, and other medical expenses not covered by your health plan, such as orthodontia, eyeglasses, contact lenses, or laser vision surgery.
All eligible expenses must be incurred between Jan. 1 and Dec. 31 of the plan year for which you elected the FSA and while you are covered under the HCFSA:
- The deadline to incur expenses is Dec. 31 (end of the plan year).
- You must submit claims for reimbursement by March 31 following the plan year unless an extension is required by law.
- You can roll over unused HCFSA funds to the next plan year. HCFSA enrollment for the next plan year is required during Annual Enrollment for unused funds to carry over.
Remember to save all of your receipts. It will help you determine how much money to allocate to your FSA for the following year. You will also need them if you are ever asked to substantiate expenses purchased with your Fidelity NetBenefits AccessCard. Go to NetBenefits to file claims and for more information.
For expenses incurred in 2023, go to WageWorks to file claims or submit receipts for substantiation.
See the Annual Enrollment Guide for contribution.
Employees with an HSA may also have a limited-purpose Health Care Flexible Spending Account (HCFSA). A limited-purpose HCFSA works with the HSA to help you increase your tax-free savings and maximize your HSA savings potential. You can be reimbursed from your limited-purpose HCFSA for qualified dental and vision expenses (e.g., teeth cleanings, prescription glasses, contact lenses, etc.).
Visit NetBenefits for more information.
Note: Federal law prohibits employees from establishing and contributing to an HSA and participating in a general-purpose HCFSA at the same time, including if your spouse has a general-purpose HCFSA.
IMPORTANT: If you elect an HCFSA and enroll in a High Deductible Health Plan and establish an HSA though Fidelity, your HCFSA will automatically be a limited-purpose HCFSA.