Plan for Your Health Care and Dependent Expenses
Olympic Steel offers two types of Flexible Spending Accounts as smart and convenient ways to stretch your benefit dollars and receive real tax savings.
Health Care Spending Account: For 2024, you can contribute up to $3,200 per year on a pre-tax basis to pay for eligible out-of-pocket medical, dental and vision expenses.
Dependent Care Spending Account: For 2024, you can contribute up to $5,000 per household per year on a pre-tax basis to cover your cost of child care for children up to age 13.
Resources
How FSAs Work
FSAs let you pay qualified expenses with pre-tax dollars. This means that the money you set aside is not taxed, so you save money. Your contributions will be deducted from your paychecks in equal installments throughout the year and deposited into your account(s).
Keep in mind that the IRS has a strict “use it or lose it” rule. If you do not use the full amount in your FSA(s) by the end of the calendar year, you will lose any remaining funds. For the Health Care Spending Account, you can rollover any unused funds up to $610 into the following year. You can rollover current year unused funds (up to the IRS limit) into the next plan year.
When estimating your health care and dependent care costs, it is better to be conservative and underestimate rather than overestimate your expenses and risk losing your money at year’s end.
FSA Enrollment
- You must elect the amount you want to contribute each year for that year. Even if you participated the previous year, your election does not carry over; you must actively enroll to contribute to the FSAs.
- You cannot stop or change your contribution amount during the year unless you experience a qualified life status event.
- You cannot transfer funds from one FSA to another.
- For a list of eligible expenses, please use the following link to Benefit Resource’s website https://www.benefitresource.com/eligible-expenses/
Call Benefit Resource at 800-473-9595 or visit https://www.benefitresource.com/ with questions regarding Flexible Spending Accounts.
