Are you considering how much pre-tax money you should be setting aside in your 2015 Healthcare and Dependent Care Flexible Spending Accounts? Have a conversation with your covered dependents to accurately designate the correct amount of money you plan to use in 2015. Who needs a new pair of glasses? Think about how much your child's braces will cost. Consider summer camp expenses and daycare. Need help? The WageWorks® website is a great resource, packed with tools that will make your decision-making educated and easy.
Still Have Money Left Over from 2014?
The health system has extended the use of your 2014 Dependent Care and Healthcare FSA money through March 15. Services or products need to be utilized by March 15 and claims need to be filed by March 31, or you will lose it.
In comparison, the U.S Treasury announced the Use It or Lose It ruling last year, allowing participants to carry $500 of unused Healthcare FSA money only. The health system's generous three month grace period allows you to spend whatever amount you have leftover, and does not just limit you to $500, or to just Healthcare spendings, it also includes your Dependent Care spendings.
File Claims for 2014 through March 31, 2015
If you have money left in a 2014 Healthcare or Dependent Care FSA and plan to use it between January 1 and March 15, 2015 - don't try using that 2014 Debit Card - it will be declined. And don't use your new Debit Card, because it will then be depleting your 2015 account.
Any Healthcare of Dependent Care FSA money left from 2014 should be filed through a claim only - not a WageWorks Debit Card - by March 31. Read more about how to file a claim for a Healthcare FSA or Dependent Care FSA.
Each year you participate in an FSA, WageWorks will email you your annual savings statement at the end of the year. Very cool!
8 comments:
For 2015, does $500 of the FSA health care money carry over to 2016, or is it still the same 3 months grace period instead? It's not stated anywhere. thanks!
In response to Ellen's comment: North Shore-LIJ has not yet determined if a 3 month grace period will remain in affect in 2016. It is best you plan your 2015 FSA spending in the 12 month period allowed.
I understand that if I have a Qualifying Life Event during the year, I will be able to raise or lower my FSA or DCFSA elections.
What is a Qualifying Life Event in regards to this?
Thank you.
In response to December 11, 3:49 pm - Great question! When you have a QLE you will be able to change any of your benefits, including your Flexible Spending Accounts, by raising or reducing the amount of money you are setting aside. Thanks for asking.
If I am unable to use the money before the grace period ends, where exactly does that money go to?
In response to December 12 at 10:22 am - If you are unable to spend the monies you set aside in your 2014 FSAs by March 15, 2015 you will lose whatever is left in the account(s).
I understand I will lose the money if not used by 3/15/15 but where exactly does the unused money go? Who gets the unused money?
In response to December 27 at 2:38 pm - You have until March 31, 2015 to submit claims for your healthcare and dependent care FSA expenses activated January 1, 2014 through March 15, 2015. Money not spent by March 15 will go back to the health system to offset plan expenses.
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