Know your DepCare and Health FSA deadlines to avoid losing money
The Dependent Care (DepCare) and Health Flexible Spending Accounts (FSAs) both let you save on your taxes by taking money from your paycheck each month to cover certain expenses. The DepCare FSA allows you to pay for eligible expenses for the care of your child (up to age 13) or eligible adult dependent while you work. The Health FSA allows you to pay for eligible medical expenses for you and for your eligible family members.
Just as the accounts help with different types of expenses, there are important differences in what happens to money remaining in each kind of account at the end of the plan year.
Your Dependent Care (DepCare) FSA grace period ends March 15
If you have a remaining balance in your 2018 DepCare FSA, you still have time to use it! WageWorks will use your 2018 funds for any eligible expenses you incur through March 15, 2019 – as long as you submit your claims by April 15, 2019. You cannot carryover any remaining balance from 2018 past the March 15 grace period, even if you’ve enrolled in the DepCare FSA for 2019.
Health FSA carryover rules and deadlines
If you were enrolled in the Health FSA through Dec. 31, 2018, you are allowed to carry over up to $500 of unused funds to the next plan year. With the carryover, if your balance is $500 or less, you do not have to worry about losing money when the plan year ends.
You had until Dec. 31, 2018 to incur eligible expenses for the 2018 plan year, and you have until April 15, 2019 to file claims for your 2018 expenses. After the April 15 deadline, unused funds up to $500 will carry over to the 2019 plan year and be available for reimbursement in early May. Unused funds greater than $500 will be forfeited.
If you did not re-enroll in the Health FSA for 2019, you must have at least $25 remaining in your account after the April 15 deadline to be able to carry over funds to the next plan year. Funds under $25 are forfeited, and you may only carry over funds (up to $500) for one year.
Log in to your WageWorks account to get immediate access to your FSA activity, account balance, and reimbursement information.
For more details, see the Flexible Spending Accounts page on UCnet.
Tags: benefits, DepCare, FSA, wellness