Flexible Spending Accounts (FSAs)

Inserso’s Flexible Spending Accounts (FSAs) let you set aside pre-tax dollars out of your paycheck to pay for certain non-reimbursable expenses. The end result, you pay less taxes. Plus, the convenience of automatic payroll deductions makes it easy to participate.

New hires will be able to enroll into the Health Care and Dependent Care FSA during their new hire enrollment period.

Budget Appropriately

FSAs are typically “use or lose” programs. This means if you do not use all of the funds you elect to contribute to your FSA during the calendar year, you will lose those remaining funds (with exception of rollover amounts outlined below). The only time you may make a change to your Health Care/Limited Purpose and/or Dependent FSA contribution election is if you experience an IRS Qualifying Life Event (QLE) such as marriage, birth of a child, adoption of a child, divorce, widowed, etc.

Save All Receipts

You must save all receipts from purchases made on your FSA Benny Card, including prescriptions and physician copays. Sentinel may request that you substantiate your FSA purchases made on the Benny Card.

In 2024, you can contribute up to $3,200 (the IRS maximum) per year on a pre-tax basis to pay for eligible out-of-pocket health care expenses. You can use these dollars to pay for deductibles, copayments and other eligible health care expenses incurred by you and your eligible dependents.
It is the participant’s responsibility to ensure that they are filing claims only for eligible dependents under their FSA plans. Participants certify, via the claim form and/or cardholder agreement, that the claims are for eligible dependents under their FSA plan and assume liability for this representation.

Participants may carryover up to $640 in unused funds into the following plan year. Unused funds over $640 will be forfeited. Claims must be submitted for reimbursement by November 30.

  • Copayments, deductibles and co-insurance
  • Eye examinations, glasses and contacts
  • Dental insurance copayments and orthodontic expenses
  • Transportation to and from medical provider
  • Medical supplies

With a Limited Purpose FSA, general medical expenses are not eligible for reimbursement. You may submit claims ONLY for certain eligible dental and vision care expenses. A Limited Purpose FSA may be used in conjunction with a Health Savings Account (HSA) and High Deductible Health Plan. Just like a traditional FSA, any money remaining in the account at the end of the plan year’s grace period is forfeited.

Participants may carryover up to $640 in unused funds into the following plan year. Unused funds over $640 will be forfeited. Claims must be submitted for reimbursement by November 30.

  • Certain eligible dental and vision expenses

A Dependent Care FSA lets you use pre-tax dollars to pay for eligible expenses related to care for your child under the age of 13, disabled spouse/domestic partner, elderly parent, or other dependent who is physically or mentally incapable of self-care, so you can work, or if you are married, for your spouse/domestic partner to work, look for work or attend school full time. You can contribute up to $5,000 per year, or $2,500 if married and filing separate tax returns.

The Dependent Care FSA does have a grace period, which provides that funds contributed in a plan year can be utilized for claims that occur during the plan year or within 2.5 months after the plan year. Participants may use remaining funds for claims incurred through November 15. Any remaining funds will be forfeited. Claims must be submitted for reimbursement by November 30

  • Child care or dependent care facilities, including:
  • Day Care Centers
  • Nurseries
  • Summer Camps (Overnight camps are not eligible)
  • Elder Day Care
  • Services in your home that include dependent care
  • Care in your home or someone else’s home, only for services

Under this program, you can set aside pre-tax dollars to use for eligible commuter and parking expenses. The IRS sets limits for the amount for each type of expense. The 2024 limits are as follows:

  • $315 per month for transit passes and van pooling
  • $315 per month for qualified parking
  • Changes can be made to your commuter account throughout the year
  • Any unused dollars carryover year to year

Important: The FSA is Based on Plan Year

The FSAs run on a Plan Year basis; that is, from September 1 through August 31.

Please note:

If you have a Health Care FSA and enroll in one of the QHDHP medical plans for the new plan year, you will be able to contribute to an HSA effective 9/1. If you have remaining funds in your Health Care FSA as of August 31, you have two options:

  1. You can do nothing. Your FSA plan will end as of 8/31, and you will forfeit any remaining funds for expenses that were incurred in the plan year if you have not submitted for reimbursement for such expenses within 90 days of 8/31; or
  2. Transition your remaining Health Care FSA funds, up to the IRS rollover amount, into a Limited Purpose FSA, effective 9/1, by signing up for a Limited Purpose FSA during open enrollment. Any funds in excess of the rollover amount would be forfeited.

HSA vs. FSA: What’s the Difference?

Have a question?

Send your questions to HR@inserso.com and someone from our Human Resources team can help.
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