Flexible Spending Accounts

What you need to know

A Flexible Spending Account (FSA) is another tool to help you manage your health care and dependent care expenses. Your pre-tax contributions can be used to pay for eligible expenses—such as doctors’ visits, prescription drugs, child care, and more—tax-free.

You must enroll in FSAs each year during Annual Enrollment. FSA contributions do not carry over from year to year.

Health Care FSA fast facts

Administrator: Your Spending Account™ (YSA)

You contribute through paycheck contributions. You can use the money to pay for eligible expenses during the calendar year. For employees hired after the first of the year, your benefits effective date is your hire date.

Contribute up to $2,600 in 2018 ($2,650 in 2019). And you don't pay federal or state income taxes on FSA contributions.

Carry over up to $500 each year. Anything over $500 that isn't used or reimbursed during the year will be forfeited.

You’ll receive a YSA debit card if you contribute $100 or more. Use the card to pay for eligible health care expenses anywhere the debit card is accepted—and skip the reimbursement process! Your eligible expenses are automatically deducted from your account.

Plenty of time to submit claims. The deadline for submitting claims is April 30, 2019, for reimbursement of expenses in 2018.

FSAs are subject to IRS rules. Be sure to save all your receipts. You may be asked to provide copies to confirm your expenses. If you do not provide receipts when requested, your YSA debit card could be deactivated.

If you’re enrolled in or plan to enroll in the CDHP with HSA plan and want to enroll in the Health Care FSA, reimbursement under the FSA is limited to dental and vision expenses only. (The HSA already gives you a tax benefit on medical expenses.)

Learn more about how the FSA and HSA work together, and the benefits and advantages to each.

Dependent Care FSA fast facts

Administrator: Your Spending Account™ (YSA)

You contribute through paycheck contributions. You can use the money to pay for eligible dependent care expenses during the calendar year. For employees hired after the first of the year, your benefits effective date is your hire date.

Non-exempt employees receive money from PayPal. Get an additional 15% from PayPal, up to $652 annually.

Contribute up to $5,000 per year (a combined limit between you and your spouse). And you don't pay federal or state income taxes on FSA contributions.

Plan your expenses carefully. You cannot carry over any money from year to year.

You can submit expenses for qualifying dependents, including your children under age 13 and any other person, regardless of age, who is incapable of caring for him or herself and can be claimed as a qualified dependent on your federal income tax return.

Eligible expenses include a babysitter or nanny to provide care while you’re at work, daycare provider or after-school care, and preschool tuition. All expenses must take place within the benefit plan year.

Plenty of time to submit claims. The deadline for submitting claims is April 30, 2019, for reimbursement of expenses in 2018.

FSAs are subject to IRS rules. Be sure to save all your receipts. You may be asked to provide copies to confirm your expenses.

Note: Under federal tax law, PayPal's FSA programs must pass certain non-discrimination tests each year. These tests are designed to ensure that highly compensated or key employees/participants do not receive disproportionately greater benefits. If necessary, the maximum participant contribution may be reduced mid-year to comply with federal law. You will be notified if this impacts you. 

Looking for more details? Check out the FSA FAQs.

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