Healthcare Flexible Spending Account Plan Information

You can enroll in a Healthcare Flexible Spending Account (HCFSA) in conjunction with a Copay or Deductible plan. With a HCFSA, you make pre-tax payroll contributions toward your elected annual amount over the course of the year but have access to the entire annual amount of your election on January 1. HCFSA funds may be spent on qualified healthcare expenses as determined by the IRS.

However, HCFSAs are "use it or lose it" accounts. You can only carry over a certain amount into the next plan year ($640 in 2024; 2025 limits will be released by the IRS soon) and any amount over that limit will be forfeited.

If you carry funds over into the next plan year but enroll in a Health Savings Account (HSA) instead of the HCFSA, keep in mind that the qualified expenses on which you can spend your carryover HCFSA funds will change.

Be aware that if you enroll in a HCFSA and your spouse enrolls in a Health Savings Account (HSA), you might be creating a complicated tax situation. If this applies to you, you may want to speak with a tax advisor prior to enrolling.

• HCFSA Overview - Review how HCFSAs work and the current contribution limit.
• HealthEquity Resources for Your HCFSA - Learn more about eligible medical expenses and how you can get the most out of your HCFSA.
  
• HSA or HCFSA? - Which type of tax-advantaged account is right for you? Make sure you know the differences between a Health Savings Account (HSA) and a Healthcare Flexible Spending Account (HCFSA) before you enroll, but remember that you are only eligible for a HCFSA if you are also enrolled in a Copay or Grandfathered Deductible medical plan.
• HealthEquity - Flexible Benefits Plan - Summary Plan Description