Many employers choose to expand their Section 125 flexible benefit plan by adding FSAs. These accounts allow for employees to set aside pre-tax dollars to be used for eligible out-of-pocket expenses. Contributions to these benefit accounts help offset taxable income resulting in savings for both the employer and employee!
Healthcare FSAs can be used to pay for qualifying healthcare expenses, including medical, dental, and vision costs, that are not covered by health insurance plans. By offering a Healthcare FSA, participants are able to pay for these qualified expenses incurred during the plan year as an active participant. The 2019 annual contribution limit for a Healthcare FSA is $2,700.
Limited Healthcare FSA
A Limited Healthcare FSA is exclusively designed to offset the cost of dental and vision expenses. This FSA program is available to employees who are enrolled in a high deductible health plan (HDHP) as well as an HSA. Limited Healthcare FSAs offer additional tax savings for employees, which in return increases plan participation!
Dependent Care FSA
The Dependent Care FSA is used to pay for eligible dependent care expenses. A few qualified expenses include but are not limited to child care, elder care, nursery school and more. The 2019 maximum annual contribution limit for a Dependent care FSA is $5,000. This plan is a smart, simple way to save money while taking care of your loved ones.
Employer Fees for FSAs
- $50 monthly minimum billing
- $150 annual fee
- Easy setup and administration
- Compliment other benefit offerings