If your employer is offering a Health Flexible Spending Account (FSA), you can enroll in that plan from your Gusto account if you’re eligible. Follow the steps below to enroll in or waive this benefit:
Health Flexible Spending Arrangements (includes limited-purpose FSAs)
Maximum Annual Limit
Your Health FSA can be spent on eligible medical, dental, vision, and pharmacy expenses incurred during your Health FSA policy year. For example, if your Health FSA is active from 1/1/22-12/31/22 you cannot pay for services rendered in 2021.
To learn more about what specifically is eligible, here are a few more resources:
Keep in mind that if you're enrolled in a Limited Purpose FSA, you're can only use your funds for eligible dental and vision expenses. Medical and pharmacy expenses will not be allowed.
There are many differences between the two, but one of the biggest distinctions is that the funds in an FSA will expire if unused during a plan year while the HSA funds can be used beyond the plan year.
FSA: Employees can make pre-tax contributions to their FSA accounts, which are pre-funded by the employer and repaid through payroll deductions. Money in FSAs can be used to cover eligible expenses and must be used before the end of the plan year. This is known as the “use it or lose it rule.”
HSA: A tax-advantaged account for people who are enrolled in a high-deductible health plan (HDHP). Pre-tax dollars are contributed to the account and accumulate each year that you’re enrolled without expiring. These funds can be used to cover eligible medical expenses and investments.
At the end of your company’s plan year, you have 90 days to submit claims for services rendered during your previous plan year. This is called the runout period.
Additionally, your company can choose to either offer a grace period or a rollover in addition to the runout period.
This is the time period after your policy ends that you are eligible to use your Health FSA funds for new expenses. This is typically 75 days.
This is an amount of money that can rollover from one policy year to the next as long as the employee renewed their Health FSA. The maximum an employer can allow an employee to rollover in 2021 is $550. The rollover limit for 2022 has increased to $570.
During the 90 day runout period, if your company offers a rollover, you will be eligible to submit claims for previously rendered services and use your card for new expenses incurred.
You can check to see whether your company offers a Grace Period or Rollover in your Gusto profile by clicking into your Health FSA benefit.
Health FSAs are terminated on the last day of employment.
Runout period: An employee has 90 days from the last day of employment to submit claims for any eligible services rendered during the policy period. The policy period goes from the effective date of the FSA until the last day of employment. For example, if your last day of work is November 1st, have until January 30 to submit claims. Any claims must be for eligible expenses that you incurred during the policy period on or before November 1st.
You can see your last day to submit claims in your Gusto Benefits Card Manager, by clicking into your Health FSA and looking at the “Deadlines” Section.
If you didn’t register for your Gusto Benefits Card Manager account during your employment, please reach out to [email protected] for your credentials.
After the 90 day runout period any remaining funds left in your account are forfeited to your previous employer.
The annual amount you chose to contribute during your enrollment is locked in for the remainder of the company’s policy year. Health FSA elections cannot be changed unless you experience a qualifying life event.
If you are experiencing a qualifying life event and think you're eligible to make changes to your Health FSA contribution amount, please reach out [email protected] for help.
Keep in mind that if you want to lower your contribution amount, it can only be lowered up to the amount that has already been used or contributed, whichever is larger.