Sometimes, you might need a Health Care Flexible Spending Account (FSA) with WageWorks.
When you have a Health Savings Account (HSA), you can also elect a to open a Limited Use Health Care Flexible Spending Account (FSA) with WageWorks during Benefits Annual Enrollment. The maximum contribution amount is $2,500, and funds are available starting January 1. Thanks to the new carryover rule, you can carry over balances of up to $500 from one plan year to the next, so there’s less risk of forfeiting your hard-earned money.
With a Limited Use Health Care FSA, you can only use the funds for dental, vision and preventive prescription drug expenses until you have met your deductible in the Health Fund plan. Once you meet the deductible, your Health Care FSA can be used for medical and non-preventive prescription drug expenses, too.
Here’s an example of how you might benefit from contributing to an additional health account, like the Limited Use Health Care Flexible Spending Account (FSA) with WageWorks:
Your child is scheduled to get braces at the beginning of the year, but you don’t have enough money saved in your Health Savings Account (HSA) to cover the expense. What are your options?
- During the next benefit enrollment period (generally in November of each year), in addition to your HSA, enroll in a Health Care FSA with WageWorks. This will give you the flexibility to draw on the account ahead of your contributions, like using a credit card. The funds are available January 1, and you get a WageWorks card to pay for eligible health care expenses. If you miss the enrollment period, you will have to wait until the next enrollment period or have a qualified life-status change in order to change your benefit elections, like getting married or having a baby.
- You choose the amount you want in your FSA with WageWorks, between $100 and $2,550.
- The funds in your FSA will be available for you to use on January 1. But remember, you can only use your Health Care FSA for dental, vision and preventive prescription drug expenses until you meet your medical deductible.
Quick Tip: You can’t predict what your actual health care expenses will be for next year, but a good place to start is to review your current year expenses. Consider any preventive prescription drugs, dental and vision expenses you’ve paid this year. If you anticipate having similar expenses in the following year, then a Limited Use Health Care FSA may be a good option for you. But don’t risk losing your hard-earned money — the new carryover rule only allows you to carry over up to $500 from one plan year to the next.
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