HomeServices benefits package includes flexible spending accounts, which allow you to use pre-tax dollars to pay for eligible expenses. You can contribute to a flexible spending account directly from your paycheck before taxes are deducted, up to the IRS annual plan maximum.
How Does It Work?
When the plan year begins, money is deducted from your paycheck before federal, state, or Social Security taxes are taken out. In turn, this money is used to pay for eligible expenses during the plan year. Unlike a Health Savings Account (HSA), flexible spending accounts are subject to a “use it or lose it” rule. Due to the tax advantages of these accounts, the IRS requires that you use the entire balance on eligible expenses prior to the end of the plan year or forfeit the money that remains. Expenses must be incurred between January and December of the plan year. There is no grace period or carryover. Keep this in mind when deciding how much to contribute to your account, so you do not end up with more funds than you can use for the year.
UnitedHealthcare is the HomeServices FSA vendor. Eligible expenses may be submitted to UnitedHealthcare for reimbursement via paper reimbursement form, online at the UnitedHealthcare member website, or at point of service through debit card.
If you are enrolled in the HSA Plan and have a Health Savings Account (HSA), you can increase your savings with a Limited Purpose FSA. This pre-tax benefit account helps you save on eligible out-of-pocket dental and vision care expenses while taking advantage of the long-term savings power of an HSA. Enrolling in the Limited FSA allows you to allocate your HSA funds for other purposes – even keeping them until retirement.
Eligible expenses include dental plan deductibles and copayments, and other dental or vision services not covered by insurance, such as adult orthodontia.
The current IRS annual plan maximum for the Limited FSA is $3,200.
If you are not enrolled in the HSA Plan, you are eligible to contribute to the HCRA. The HCRA allows you to pay for eligible out-of-pocket expenses on a pre-tax basis. Eligible expenses include medical plan deductibles, copayments, coinsurance, and health-related services not covered by insurance, such as adult orthodontia.
The current IRS annual plan maximum for the HCRA is $3,200.
The DCRA offers tax savings on money set aside to pay for daycare expenses. Eligible expenses may include preschool, summer day camps, before and after school care, and child or elder daycare. Eligible dependents include:
- A dependent child who is under age 13
- A physically or mentally handicapped legal dependent who is incapable of self-care, including a disabled parent, if they spend at least eight hours a day in your home
The current IRS annual plan maximum for the DCRA is $5,000.