Flexible Spending Account (FSA)
Also known as a flexible spending arrangement, an FSA is a type of tax-advantaged savings account. An employer will pre-fund the account after the annual contribution amount is chosen by the employee during open enrollment. Pre-tax deductions are then taken from the employee’s payroll throughout the year to repay the employer for those upfront costs. FSA funds expire if they aren't used by the end of the plan year unless the company offers extension options such as rollover or grace period.
FSAs can be spent on eligible medical expenses like chiropractic care, acupuncture, and much more. To learn more about eligible medical expenses, visit the full list from the IRS.
If your FSA is managed by Gusto, visit your Gusto Benefits Card Manager portal to review transactions, claims, and more.
Note for employers: In order to purchase and provide a Flexible Spending Account through Gusto, you must first have medical insurance managed by Gusto.
|Health Flexible Spending Arrangements (includes limited-purpose FSAs)||2018||2017|
|Maximum Annual Limit||$2650||$2600|
|Dependent Care FSA||2018||2017|
|Account holder is married and files a separate tax return||$2,500||$2,500|
|Account holder is married and files a joint tax return or files as single/head of household||$5,000||$5,000|
Questions & Answers
Q: What's the difference between an FSA and an HSA?
A:Visit this article from our Help Center.
Q: Can I have an HSA and an FSA?
A:If you have an HSA, you’re only eligible for a “Limited purpose FSA.” Learn more from this article in our Help Center.
Q: What is a rollover option?
A: An employer can elect to have up to $500 of an employee's funds from the previous plan year to roll into the new plan year. This means that $500 of your FSA will not be lost once the plan year has ended.
Q: How much money can I contribute to my FSA?
A: In 2017, the maximum contribution to an FSA is $2,600 and $5,000 to a dependent care FSA.
Q: When will employees receive their Gusto Benefits Card Manager cards?
A: 7-10 business days after enrolling.