The HSA is an individual Health Savings Account that is owned by the employee and may be used for the payment of medical expenses that are not covered by a qualified High Deductible Health Plan (HDHP), including expenses that go toward satisfying the deductible. This maximum is inclusive of employer and employee contributions.
A Health or Dependent Care Flexible Spending Account (FSA) allows participating employees to reduce their earnings on a pre-tax basis to pay for certain qualified expenses. Salary reductions provide significant tax savings to both the employee and the employer.
Health FSA: $2,750
Dependent Care FSA: $10,500
Health FSA: TBD
Dependent Care FSA: TBD
FSA Rollover (Carryover)
Employers may offer employees the option of rolling over a portion of their remaining Health FSA balance each year, to be used in the same type of plan during the following plan year. The final balance that is available for rollover will be determined after the current plan year’s claim submission deadline.
COVID-19 Note: The Rollover provision is normally not available for Dependent Care FSA, but due to COVID relief legislation that was passed in 2021, Rollover has temporarily been made available for Dependent Care FSA as well, provided the employer opts in for their plan to include it.
2021 Rollover into 2022 Plan Year: Full balance remaining in 2021 Health FSA and/or 2021 Dependent Care FSA
2022 Rollover into 2023 Plan Year: TBD
The Transit Plan allows employees to set money aside on a pre-tax basis for mass transit expenses. Employees get to use tax-free money for their commuting expenses when traveling to and from work.
2021: $270 per month
The Parking Plan allows employees to set money aside on a pre-tax basis for work-related parking expenses. Employees get to use tax-free money for parking at or near an office location or mass transit hub.
2021: $270 per month
With a Tuition Reimbursement Plan, the IRS allows employees to generally exclude from income amounts received from an employer-sponsored tuition assistance or educational assistance program (EAP) used to fund employee education-related expenses, subject to the maximum limitation stated below.