FSA
A Flexible Spending Account is a special type of account you put money into to pay for certain out-of-pocket health care expenses. Your contributions to this account are not taxed so you will save the amount that would have been paid in taxes on this money.
BGDC provides both a Healthcare and Dependent Daycare FSA through Chard Snyder, a division of Ascensus. Chard Snyder offers you several ways to use the money in your FSA. For both healthcare and dependent care expenses, you can pay your provider directly online using the Chard Snyder Mobile App or your online account. For healthcare expenses, you can use the debit card to pay providers at the point of service.
Am I eligible?
Full-time associates are eligible for the flexible spending accounts. Associates enrolled in the HDHP plan who are contributing to the Health Savings Account are eligible for the limited purpose healthcare FSA as outlined below.
What Are Flexible Spending Accounts?
Flexible spending accounts, or FSAs, allow you to set aside pre-tax money and use it to reimburse yourself for certain types of expenses. Since the money you set aside in an FSA reduces the income tax you pay each year, it’s like getting a discount on those expenses. There are three types of FSAs:
- The Healthcare FSA lets you set aside up to $3,050 (subject to final IRS rules) per year for eligible medical, prescription, dental and vision expenses not paid by your insurance plans, like copayments, coinsurance and deductibles.
- The Dependent Care FSA lets you set aside up to $5,000* per year (on a pre-tax basis) for reimbursement of eligible dependent care expenses. (If you are married and file a separate income tax return, the limit you can contribute is $2,500 per year).
The Limited Purpose Healthcare FSA only reimburses you for eligible dental and vision expenses. You may contribute up to $3,050 per year to this account (subject to final IRS rules)
You may want to consult your tax advisor to see if these accounts make sense for your situation.
How Do I Use the Healthcare FSA?
Below are examples of eligible medical expenses you can pay with the health care FSA:
- Copayments or deductibles under the medical plan (or similar expenses from your spouse’s medical plan if you are covered under your spouse’s plan)
- Non-covered vision plan expenses (co-pays and other out-of-pocket expenses)
- Non-covered dental plan expenses (co-pays, deductibles and other out-of-pocket expenses)
- Out-of-pocket costs for prescription drugs
- Other expenses which would qualify as a medical deduction on your tax return
- Certain over-the-counter medicines with a prescription from your doctor
Eligible Expenses
Healthcare FSA
- Most out-of-pocket medical expenses
- Prescription/over-the-counter medications
- Dental/vision expenses
- Fertility treatment
- Maternity Charges
- And more
Dependent Daycare FSA
- Day care
- After-school Programs
- Elder Care
- Nanny/babysitter expenses
- Preschool/nursery school
- And more
To see a complete list of eligible expenses, please visit Chard Snyder resource library
The account cannot be used to reimburse some types of expenses, such as:
- Non-medically supervised programs to help you lose weight
- Non-medically necessary cosmetic surgery
- Non-prescription sunglasses
- Teeth bleaching
- Funeral expenses
- Any expense not considered “medically necessary” by the IRS
What if I Don’t Use All the Money in my FSA?
You should plan carefully before deciding how much money to put into an FSA so that you don’t lose any unused funds at the end of the calendar year.
- You can roll over up to $610 in unused money from either the health care FSA or the limited purpose FSA from one calendar year to the next.
- Any additional unused money is forfeited.
- You cannot roll over any unused money from the dependent care FSA at the end of the calendar year. It’s strictly a “use it or lose it” account.
Chard Snyder Benefit Card
If you enroll in the Healthcare or Limited Purpose Healthcare FSA, you will receive a debit card to use when paying for services you receive, if you choose. It works just like a typical debit card, except that it should only be used for qualifying expenses such as those listed above.
The Chard Snyder Benefit Card provides an easy, convenient way to use your FSA funds to pay for eligible items and services. You will receive a debit card to use when paying for services you receive. It works just like a typical debit card, except that it should only be used for qualifying expenses such as those listed above. The Chard Snyder Benefit Card is only to be used for your Healthcare FSA not your Dependent Care FSA.
If you select the full or limited Healthcare FSA for the first time, you will receive a new debit card good for 5 years.
If you enroll in the HSA for 2024 and have funds left in your Healthcare FSA as of December 31, 2023, that money will automatically be rolled over into the Limited Purpose FSA (dental and vision expenses only) according to IRS rules.
Not Sure How to Spend Your FSA Money?
Visit the Chard Snyder FSA Store for the largest selection of FSA-eligible products
