Consolidated Administrative Services

Flexible Spending Accounts (FSAs) allow you to have pre-tax money deducted from your paycheck to reimburse yourself for certain expenses. Since contributions are made through payroll deductions with pre-tax dollars, you decrease your taxable income and thereby increase your take-home pay.

The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) for the 2023-24 plan year the maximum election amount is $3,050.

With the passage of the CARES Act (COVID-3 Stimulus Bill), effective 1/1/2020, the IRS will allow Over-the-Counter (OTC) medicines or drugs to be purchased with Health Care FSA or HSA funds without a prescription. Using your flexible spending account just got a lot more flexible. Newly eligible items include antacids, pain relievers, cold & flu medication, menstruation products, digestive aids, antibiotics, and antiseptics. See an updated list of allowable expenses.

IRS Notice 2020-29 Change Form

Plan Year Maximums

The FSA Plan deduction starts on Jan 1st payroll. The Plan year is January 1 – December 31.

Health Care/Medical FSA is $2,850 per year and goes to $3,050 June 1, 2023
Dependent (child care) FSA is $5,000 per year for a married family filing joint taxes or $2,500 if filing separately.

Reminder: Health Care Accounts and Child Care Accounts are completely separate. You cannot use money set aside in your Health Care account for Child Care expenses and vice versa.

Rollover

For the year ending in 2023, that rollover amount is $570. For the year ending in 2024, that rollover amount will increase to $610.The rollover will not change the Run-Out Period.