Flexible Spending Accounts

FSA Information

ASI Flex FY 2018-19 Presentation

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 2018-19 must enroll during open enrollment. Your FY 2017-18 FSA election will not roll over into FY 2018-19.

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, 2017 through June 30, 2018, and credited to your FSA account(s).

Incurring Claims

The State’s FSAs work via reimbursement. You contribute money each month, and then after you incur your expenses, you submit a claim. You are then reimbursed the eligible claim amount. You can incur claims for eligible expenses from July 1, 2017 through June 30, 2018. You will have until October 15, 2018 to submit claims for reimbursement. Use ASIFlex’s tax savings calculator to estimate your health care or dependent day care expenses and what you may be able to save on your taxes.

Healthcare FSA Carryover Provision

  • If you are currently enrolled in a FY 2017-18 General Purpose Healthcare FSA or Limited Purpose Healthcare FSA, you can carryover up to $500 of unused Healthcare FSA funds to the FY 2018-19 plan year.

  • During this year’s FY 2018-19 open enrollment if you elect to enroll 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.

  • Effective 7/1/2017 if you did not enroll in a FY 2017-18 General Purpose Healthcare FSA or Limited Purpose Healthcare FSA, and you had General Purpose Healthcare FSA or Limited Purpose FSA carryover funds from FY 2016-17 or previous plan years that are not used during FY 2017-18, the unused Healthcare FSA carryover funds will be forfeited.  

Healthcare FSA Debit Card

If an employee chooses to order the Healthcare FSA Debit Card the cost is $.50/month billed to the employee’s Healthcare FSA account. The Debit Card will be available for both the General Purpose Healthcare FSA (debit card can be used to pay for eligible medical, dental and vision care expenses) and the Limited Purpose Healthcare FSA (debit card can only be used to pay for dental and vision care expenses).

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