Increased FSA Flexibility Due To COVID: Important August 2021 Update
Flexible Spending Accounts (FSAs) are cash reimbursement accounts that offer potential savings for eligible employees. Effective with the 2014 plan year, Lehigh’s FSAs are administered by WageWorks.
By depositing pre-tax funds into an FSA each pay period, you could accumulate money free of federal, Social Security, Medicare, and (in the case of Health Care accounts) Pennsylvania state income taxes that can then be used for certain purposes.
There are important restrictions and conditions on FSAs. The Internal Revenue Service (IRS) determines what supplies and services are eligible for reimbursement from FSAs. And, with limited exceptions, funds that aren’t used for services that take place within the benefit plan year (January 1 – December 31) are forfeited. So good planning is essential.
There are two types of accounts available. Select the links to learn more about each:
- A Health Care FSA offers reimbursement for the cost of deductibles, coinsurances, and co-payments from any medical, dental, or vision charges; for balance billing costs; and for other eligible expenses that are not covered by insurance.
- A Dependent Care FSA offers reimbursement for the costs of caring for covered dependent children and other dependents who cannot be left alone while you and/or your spouse/domestic partner is working or attending school full time.
For More Information
Visit the WageWorks website for employees