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.

You must enroll in FSAs each year during Annual Enrollment. The annual election you select does not carry over from year to year.

Health Care FSA fast facts

Administrator: Smart-Choice

You contribute through paycheck contributions. You can use the money to pay for eligible health care 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 $2,750 in 2021. And you don't pay federal or state income taxes on FSA contributions. Your entire Health Care FSA annual election is available at the beginning of the plan year, and the balance is reduced by any reimbursements made throughout the year.

Carry over your entire unused balance to 2021 and continue to incur eligible expenses. Previously, the carryover limit was $550. If you had a Health Care FSA in 2020 and have an unused balance in your account, your entire unused balance will now carry over to 2021. Unused 2021 balances will also carry over to the 2022 plan year.

You’ll receive a Smart-Choice 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.

You have until April 30, 2021 to file claims for 2019. Due to COVID-19,** the 2019 deadline was extended from April 30, 2020 to April 30, 2021. Please submit your eligible claims by the deadline. The deadline to file claims for 2020 is December 31, 2021. Contact YBR, our benefits administrator, if you have any questions on filing your claims.

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.

* Your card is good for 3 years from date of issue. If you are enrolled in the CDHP with HSA medical plan, eligible expenses are limited to dental and vision, and you will NOT receive a debit card if you enroll in the Health Care FSA.

** Deadline dates reflected above may change upon further guidance from the IRS.

Dependent Care FSA fast facts

Administrator: Smart-Choice

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 (grades 15-19) 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. The Dependent Care FSA balance accumulates throughout the year—you only have access to the amount of funds available in the account.

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 14 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.

New for 2020 and 2021, the grace period has been extended from 2.5 months to 12 months. This means you have until December 31, 2021 to incur eligible expenses with your unused funds from 2020. Similarly, you will have until December 31, 2022 to incur eligible expenses with any unused funds from 2021.

You have until April 30, 2021 to file claims for 2019. Due to COVID-19,** the 2019 deadline was extended from April 30, 2020 to April 30, 2021. Please submit your eligible claims by the deadline. The deadline to file claims for 2020 is December 31, 2021. Contact YBR, our benefits administrator, if you have any questions on filing your claims.

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.

** Deadline dates reflected above may change upon further guidance from the IRS.

Visit the Your benefits and COVID-19 page to review the new FSA benefit enhancements.

Learn more

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How do I know how much to contribute?

This is a use-it-or-lose-it account. Any funds not used by the end of the calendar year will be forfeited. You won’t receive a refund if you don’t use all the money in your FSA, which is why it’s important to understand what expenses are eligible and to conservatively estimate your FSA expenses for the coming year. Due to the global pandemic, recent changes provide added flexibility in using unused funds from the previous plan year. Review how these changes affect your benefits.

Use the FSA estimator on Your Benefits Resources (YBR) during Annual Enrollment to help you estimate your expenses. Another way to determine your Health Care FSA contribution is to talk to your medical, dental, and vision providers. Each can help you budget your expenses for the upcoming year. Also, if you have recurring medical, dental, or vision expenses, you likely already know how much you’ll need to contribute to cover those expenses.

The same formula can be used for Dependent Care FSA expenses as well. If you know you’ll have expenses that are eligible, talk to your dependent-care providers to determine the contribution that is right for you.

Your contribution can’t be changed (increased or decreased) during the year unless you experience a qualifying life event (e.g., the birth of a child) and notify Your Benefits Resources (YBR) of the change within 30 days of the event.

The YBR team can answer your questions about qualifying life events and if you can change your contribution election as a result.

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Eligible expenses

Health Care FSA

Deductibles, coinsurance amounts, copays, and other expenses that are described in IRS Publication 502—Medical and Dental Expenses are considered eligible or a qualified expense. Premiums for health and other insurance aren't eligible expenses.

You may also now use your FSA or Health Savings Account (HSA) funds to buy over the counter (OTC) medications without a prescription, like Tylenol and other pain relievers, heartburn medications, allergy relief, and more.

You may submit eligible expenses incurred by you, your spouse, your children, and any other person who can be claimed as a qualified dependent on your federal income tax return. Domestic partner expenses are not covered.

Dependent Care FSA

Eligible expenses include a babysitter or nanny to provide care while you’re at work, day care provider or after-school care, and preschool tuition. Expenses must be incurred for the care of eligible family members as described in IRS Publication 503—Child and Dependent Care Expenses. All expenses must take place within the benefit plan year.

You can submit expenses for qualifying dependents, including your children under age 14 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.

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Submitting a claim

You’ll need to submit your receipts for reimbursement online on the Your Spending Account (YSA) website. You can also quickly request reimbursement on your smartphone through the Reimburse Me mobile app. Eligible claims are typically processed within 3 to 5 days. You can activate direct deposit with YSA online, which will expedite your reimbursement directly to your bank account.

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If you have questions

For questions, please contact the Benefits Administrator, Your Benefits Resources™ (YBR) at 1-844-474-6641.

For inquiries about your FSA balance or claims, choose option 1 (Smart Choice Spending Accounts), verify your identity, then choose option 1 (Health Care Spending Account) or option 2 (Dependent Care Spending Account).

For inquiries about your FSA election or to make prospective changes to your elections, choose option 3 (Health & Insurance), and then Option 2 (Healthcare).

To view your FSA, access YBR (@Work | Log in).

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