No more ‘use it or lose it;’ money in 2016 health care flexible spending accounts will carry over
Beginning with 2016 contributions, the City will allow you to carry over unused money in your Minneflex health care flexible spending account. Unused contributions greater than $25 but less than or equal to $500 will carry over into the next plan year.
Unused 2015 contributions will not carry over into 2016 because current health care flexible spending accounts (FSA) are "use it or lose-it" plans, meaning any money remaining in the accounts at the end of the year is forfeited.
What is a flexible spending account?
A flexible spending account, or FSA, allows you to save money on health care costs by setting aside a chosen amount from each paycheck before taxes are taken out. Then you can use the money to pay for health care costs for yourself, your spouse and your eligible dependents. Since pre-tax dollars are used, FSAs can create tax savings. See a list of items typically covered by a flexible spending account (items also typically covered by your HRA/VEBA).
The federal government limits the annual flexible spending account contribution to $2,500.
Do you want a flexible spending account in 2016?
If you want tax savings with a flexible spending account next year, decide how much you want to set aside for 2016 and sign up for your FDA during open enrollment Nov. 1-15. (If you currently have an FSA, you must reenroll for the account in 2016. The account does not automatically reregister you for 2016.
Published Oct 20, 2015