Flexible Spending Accounts (FSA) are a great way to save on predictable health, dental, vision, and prescription. These expenses can be for you or any member of your family regardless of whether or not they are covered by a City of Columbus insurance plan.
FSAs are funded with money you contribute on a pre-tax basis. Employee Benefits Corporation (or EBC) is the Flex Account administrator for the City of Columbus in 2023. Employees will continue to request reimbursement from EBC for funds that are part of the 2023 rollover, through March, through the app or manual (paper) reimbursement. For 2024, Lively is the Flex Account Administrator.
(Health Care or Medical) Flexible Spending Account (FSA)
The Health Care FSA allows you to save for eligible medical expenses on a pre-tax basis. The Health Care FSA is available to full-time employees who elect the Preferred Provider Plan (PPO) or are declining coverage through the City’s health insurance plan.
The maximum contribution amount is set by the IRS annually. The minimum contribution per pay is $5 or $130 annually (26 pays.) This amount cannot be changed or stopped unless you experience a qualifying life event. This amount will be deducted from your pay and placed in a special account with our Flex Administrator. You will receive a debit card that you can use to access your funds. If you have already paid the medical charge, you can submit a claim for reimbursement.
Dependent Care Flexible Spending Account (FSA)
The Dependent Care FSA works similarly to the Health Care FSA. It allows you to set aside pre-tax money each year for reimbursable day care expenses for eligible dependents, such as fees for a licensed day care provider. For this account, funds must have been deposited before they can be used. This type of FSA is available to all full-time employees who qualify with caregiver expenses. Anyone can sign up.
The maximum contribution for this account is set by the IRS annually. The minimum contribution per pay is $5 or $130 annually (26 pays.) This amount cannot be changed or stopped unless you experience a qualifying life event. This amount will be deducted from your pay and placed in a special account with our Flex Administrator. You will receive a debit card that you can use to access your funds. If you have paid the daycare fees, you can submit a claim for reimbursement.
Limited Purpose Flexible Spending Account (FSA)
The Limited Purpose FSA is available to all full-time employees. The limited purpose means that it is for dental and vision expenses only. Employees can have the Limited Purpose FSA, other FSAs and the HSA at the same time. Remember that aside from roll-over expenses, funds are lost if not spent so budget wisely.
The maximum contribution for this account is set by the IRS annually. The minimum contribution per pay is $5 or $130 annually (26 pays.) This amount cannot be changed or stopped unless you experience a qualifying life event. This amount will be deducted from your pay and placed in a special account with our Flex Administrator. You will receive a debit card that you can use to access your funds. You can submit a claim for reimbursement if you have paid the dental or vision expenses.
Important Flexible Spending Account Facts
- You may use the money in your account to pay for expenses you or your dependents incur only during the same calendar year. Any money remaining in your account after applying for reimbursement for the year is forfeited and cannot be returned for any reason.
- For 2023, the Internal Revenue Service will allow participants to roll over a maximum of $570 from their health care FSA or limited FSA to the next plan year.
- Your Health Care and Dependent Care FSAs are separate. You cannot transfer money between the two accounts.
- When submitting claims, you must attach an itemized receipt. An EOB, or Explanation of Benefits, can be submitted for reimbursement.
- You must re-enroll in the FSA each year.
- For 2023 the maximum employee contributions are
- Healthcare FSA – $3,050 a year or $117.30 per pay
- Dependent Care FSA – $5,000 a year or $192.31 per pay
- Limited Purpose FSA – $3,050 a year or $117.30 per pay
- For 2024 the maximum employee contributions are
- Healthcare FSA – $3,050 a year or $117.30 per pay
- Dependent Care FSA – $5,000 a year or $192.30 per pay
- Limited Purpose FSA – $3,050 a year or $117.30 per pay
