How does the FSA work?
The FSA works in four steps: 1. Determine how much you’d like to contribute to your FSA for the plan year. To calculate your potential tax savings and health or dependent care costs, use the FSA Calculator. 2. Money is deducted from each paycheck throughout the year and kept in your FSA. 3. When you incur an eligible expense, submit an FSA claim form to request reimbursement in pre-tax dollars. 4. Reimbursement checks include an Explanation of Benefits (EOB) that shows year-to-date deposits, claims submitted, claims paid and FSA balance. Three months before the end of the plan year, you’ll receive an account status report that provides account totals and reminds you to submit outstanding claims to avoid forfeiting any contributions. Remember, any unused money in your FSA at the end of the plan year will be lost, so it’s important to track your contributions and reimbursements carefully.
