FSAs (Flexible Spending Accounts)

An FSA is a great way for employees to set aside pre-tax money to pay healthcare, dependent care and/or commuting expenses. This helps employees save money on everyday expenses they are already paying. Talk to your Associated Benefits Connection sales team member and/or benefits and tax advisors to see if offering an FSA could be a good addition to your benefits package.

Generally, yes. Many employers choose to do this to allow their employees to benefit from the advantages of both accounts – building savings in the HSA while using the FSA to pay for everyday expenses. However, it is very important to structure the plans correctly to make sure that your employees will remain eligible to contribute to their HSAs. Discuss your desired plan designs with your Associated Benefits Connection sales team member and/or benefits and tax advisors to make sure that your plans will be compliant.

Yes. You will want to help your employees understand how the two plans work together, for example, which plan will pay first. Your Associated Benefits Connection team and/or benefits advisor may be able to help with employee education needs.

While you don’t have to, many employers choose to do this because it makes it easier for the employer to manage their plans and employees to manage their accounts. Plus, many administrators offer package pricing that can help you save money on the benefit plans you offer. Talk to Associated Benefits Connection sales team member about the pricing we can offer.

A Flexible Spending Account (FSA) is a tax-advantaged account that allows you to set aside pre-tax money from your paycheck for qualified expenses. The expenses you can pay vary from plan-to-plan. Check your plan documents to confirm which expenses are eligible for your plan.

A Health Savings Account (HSA) is a tax-advantaged account for individuals enrolled in an HSA-qualified health plan (also known as a high-deductible health plan or HDHP), while an FSA is available to employees regardless of their health plan. HSA funds roll over from year to year, while FSA funds are generally use-it-or-lose-it within the plan year, with some exceptions.

FSA-eligible refers to expenses that can be reimbursed using pre-tax dollars from your FSA. The expenses you can pay vary from plan-to-plan. Check your plan documents to confirm which expenses are eligible for your plan.

A dependent care FSA is a type of Flexible Spending Account specifically designed to cover dependent care expenses, such as childcare, adult daycare, and caregiver transportation, using pre-tax dollars.

The expenses you can pay vary from plan-to-plan. Check your plan documents to confirm which expenses are eligible for your plan.

You can use your FSA money by paying for eligible expenses directly with an FSA debit card, if allowed by your plan, or by submitting receipts for reimbursement. Check with your administrator for specific guidelines on how to access and use your FSA funds. If you’re a current Associated Benefits Connection® FSA participant and need help, contact Participant Services at 800-270-7719 or Participant.Services@AssociatedBank.com.