Each year Justworks goes through a renewal period for setting up Flexible Spending Accounts and Health Savings Accounts for an effective date of January 1 of the next year. HSAs and FSAs provide a way for employees to set aside pre-tax dollars to cover qualified medical expenses outlined by the IRS. During this renewal period, employees have the opportunity to enroll or update their contributions for the upcoming year.
This renewal period typically occurs in late November for employers and early December for employees.
Can I enroll in an HSA?
HSAs are only made available if your employer is providing access, and you are enrolled in a High Deductible Health Plan. HDHPs cover preventive care before the deductible – the ACA requires this of all plans – but under an HDHP, no other services are covered until the insured has met the deductible after which insurance covers all other services. HSAs are a great way to pay for expenses that contribute to your deductible.
Can I enroll in a Healthcare FSA?
FSAs must be made available by your employer, and are compatible with all health plans your employer is providing access to.
While you cannot enroll in both a healthcare FSA and HSA, you may enroll in a Dependent Care FSA (DCFSA) alongside an HSA.
Contribution Limits for 2020
The individual contribution limits for 2020 are as follows:
HSA - $3,550
FSA - $2,750
The family contribution limits for 2020 are as follows:
HSA - $7,100
FSA - $2,750
For Dependent Care FSA, employees may contribute up to $5,000 per year if they are married and filing a joint return, head of household, or if they are a single parent. If you are married and filing separately, you may contribute up to $2,500 per year per parent.
Do I need to make changes if I am satisfied with my HSA/FSA?
If you are enrolled in an HSA for 2019, you are not required to make an election to keep your HSA for 2020. You are eligible to change your contribution amount at anytime for the following month.
If you are enrolled in an FSA for 2019, you must actively elect a contribution amount for 2020 if you would like to keep the FSA.
What happens to my accounts at the End of the Year?
If you have not used all funds contributed throughout the year, any remaining funds will roll over to the new calendar year. No amount is forfeited.
FSA (Healthcare and Dependent Care)
Funds that are not used will be forfeited on January 1. Claims for expenses incurred through December 31st of the current year can be submitted to BenefitWallet for reimbursement through March 31st.