Flexible Spending Accounts

FSA Information

Flexible Spending Accounts (FSAs) help you make your money go further by letting you set aside pre-tax dollars to pay for certain out-of-pocket eligible health care and dependent day care costs.

Those who want an FSA in FY 2019-20 must enroll during open enrollment. Your FY 2018-19 FSA election will not roll over into FY 2019-20.

Here’s how they work:

  • You make contributions from your pay on a pre-tax basis.
  • Contributions aren’t subject to federal income tax, Social Security tax, and, in most cases, state income tax.
  • The tax savings help offset the cost of eligible health care and dependent day care expenses.
  • You are not taxed on reimbursements from your FSAs.

The State of Colorado offers three types of FSAs:

  • General Purpose Healthcare FSA—To pay for eligible medical, dental, and vision care expenses. You cannot have this account and contribute money to an HSA.
  • Limited Purpose Healthcare FSA—To pay only for eligible dental and vision care expenses. You can have this account and contribute money to an HSA.
  • Dependent Day Care FSA—To pay for eligible child care and elder care expenses. You can have this account and an HSA.

Making FSA Contributions

The annual amount you contribute to your FSA is deducted from your paychecks in equal installments, on a pre-tax basis, from July 1, 2019 through June 30, 2020, and credited to your FSA account(s).

Incurring Claims

The State’s FSAs work via reimbursement. By election to participate in a Flexible Spending Account (FSA), you contribute pre-tax dollars each month into an account, and once you incur a qualified medical or dependent care expense, you submit a claim either by using your dedicated FSA debit card or submitting a claim form with receipts for reimbursement. You can incur claims for eligible expenses from July 1, 2018 through June 30, 2019. You will have until October 15, 2019 to submit claims for reimbursement. 

Healthcare FSA Carryover Provision

  • If you are currently enrolled in a FY 2018-19 General Purpose Healthcare FSA or Limited Purpose Healthcare FSA, you can carryover up to $500 of unused Healthcare FSA funds to the FY 2019-20 plan year. The deadline to submit claims for FY 2018-19 is October 15, 2019. Any unused carryover funds after October 15, 2019 will be forfeited. 

  • During this year’s FY 2019-20 open enrollment if you elect to enroll in a FY 2019-20 General Purpose Healthcare FSA or Limited Purpose Healthcare FSA you can carry over up to $500 of unused Healthcare FSA funds to the FY 2020-21 plan year. 

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