How much should I contribute to my FSA?
During setup for your individual FSA in Zenefits, enter a single annual contribution amount for either a Health Care or Child & Elderly Care account to set up only one type of account, or separate amounts for each type to set up both types of accounts. Here are tips on choosing the right contributions for either or both type.
How much can I contribute to a Health Care FSA?
You can contribute up to $2750 a year to a Health Care FSA, regardless of the filing status you claim on your Federal tax returns. Learn more.
How much can I contribute to a Child & Elderly Care FSA?
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:
- Single or married, filing jointly, you can contribute up to $10,500.
- Married, filing separately, you and your spouse can each contribute up to $ 5 ,250 each.
How do I choose the contribution amounts that are right for me?
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:
- If you contribute more, you may increase your tax savings. You can maximize your tax savings if you contribute more. Learn more.
- Your company may choose to contribute to your FSA(s). If so, you'll be able to see the amount(s) when you set up your plan. Company contributions count towards your annual maximum limit for a Child & Elderly Care FSA, but not towards the limit for a Health Care FSA.
- FSAs are "use it or lose it" accounts. Any funds you don't spend by the end of the plan year (or when your employment ends) go back to your employer, so don't contribute more than you're sure you will spend.
- Contribution amounts can't be changed. Once the plan starts, you can only change your contribution amount(s) after a birth, death, change in martial status, or other qualifying life event.
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