If your company offers health insurance and you are eligible to enroll in one of their plans, you are eligible to enroll in an FSA. You do not need to be enrolled in health insurance through your company, you simply need to be eligible to be offered insurance. Though there are exceptions, self-employed employees and shareholders who own 2% or more in an S-Corp, LLC, LLP, PC, sole proprietorship, or partnerships are generally ineligible for FSAs.
If you already have a health savings account (HSA), or intend to sign up for one, you can only enroll in a Child & Elderly Care FSA. You may not be enrolled in an HSA and a Health Care FSA at the same time.
To use the funds from a Child & Elderly Care FSA, you need to be working or currently looking for work, and you likely need to claim your dependent(s) on your federal tax return.
See the IRS rules for determining whether a person qualifies as a eligible dependent for the purposes of a Child & Elderly Care FSA.
Sure! If you have both health care and child/elder care expenses, you can contribute to both a Health Care and Child & Elderly FSA. During setup, you'll be able to choose separate amounts for each type. However, you can't transfer funds between the two accounts.
Yes! You'll have 30 days from the birth of a child, a death of a family member, or another qualifying life event (QLE) on this list to set up a new FSA. When you do, the plan will have a retroactive start date of the first of the month in which the event occurred.
Keep in mind that if you're expecting a newborn, you need to wait until after the child is born to set up the account. Learn more.
After your plan starts, you can pay for eligible Health Care FSA and/or Child & Elderly Care FSA expenses using your Zenefits Card, or by submitting claims for reimbursement of out-of-pocket expenses.
The maximum annual amount you can contribute to a Child & Elderly Care FSA depends on which filing status you choose on your federal tax return.
If you choose a filing status of:
As an employee, the only cost to you is the amount you contribute to your FSA. Your company will pay all setup and account fees.
FSAs let you plan ahead for your out-of-pocket expenses, so the right contribution amount for either FSA type will ultimately depend on how much you expect to spend on eligible expenses.
Here are a few things to consider:
The right choice depends on what kinds of expenses you have:
Your deadline to enroll in a FSA is dependent on what type of enrollment is occurring.
When your company sets up a new company FSA plan (initial FSA enrollment) or renews an existing plan (open FSA enrollment), you have until the 25th of the same month to set up your individual FSA to start on the 1st of the following month. If you enroll after the 25th, your FSA will start on the 1st of the month after next. Learn more.
When you get hired at a company with an existing FSA plan, you'll need to complete enrollment for your FSA within 30 days from your hire date. Your FSA start date will depend on your hire date. If you do not meet this deadline, you will need to wait until your company's next FSA renewal period or enroll if you experience a Qualifying Life Event.
Employees have 30 days from their Qualifying Life Event to enroll in an FSA. This enrollment will be effective the first of the month following the QLE. Employees must reach out to Customer Care in order to complete this request.
Like Health Care FSAs, you can start using your Child & Elderly Care FSA on the first day of your plan. However, unlike Health Care FSAs, Child & Elderly Care FSAs are not pre-loaded with the full annual amount. Contributions are added to your Child & Elderly Care FSA only as they're deducted from your paychecks.
You can start using your Health Care FSA on the first day of the plan. The entire annual contribution amount (including employer contributions, if any) is available on that date, and is repaid incrementally through deductions from your paychecks over the remainder of the plan year. However, you can't use your FSA to pay for expenses that occurred prior to the start of your FSA.
FSAs let you set aside some of what you earn each year into an account that's specifically for out-of-pocket health care, child, or elder care expenses, without paying taxes on those dollars. If you have recurring care expenses (e.g., copays, daycare, etc.), or simply a rough estimate of how much you expect to spend on them, an FSA will help you save money.
Learn more about the tax advantages of an individual FSA.