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Flexible Spending & Health Savings Accounts
Health Savings Account (HSA)
The Health Savings Account (HSA), a new saving method if you’re in the high deductible plan. Like the FSA, it will allow you to set aside funds for eligible health care expenses like doctor visits, prescriptions, dental, and vision care.
To participate in this exciting savings plan, you must enroll in the TRS ActiveCare HD plan to qualify.
Contribution Maximum Amount 2024-2025
Individuals: $4,150.00
Family: $8,300.00
Individuals age 55 or older and not yet enrolled in Medicare can make an additional “catch up” contribution of up to $1,000 per person annually.
Any funds you don’t use by the end of the year can roll over to the following enrollment year.
There are thousands of eligible expenses for tax-free purchases with your account funds, including prescriptions, doctor’s office copays, health insurance deductibles, and coinsurance. Many over-the-counter (OTC) treatments are also available. This account can also be used for Dual-Purpose Items. Items that can be used for a medical purpose or general health and well-being are considered “dual purpose” and are eligible only with a prescription, doctor’s directive, or letter of medical necessity.
Flexible Spending Account (FSA)
The Health Care FSA saves you money because you can pay for eligible health care expenses with pretax dollars. You can use the Health Care FSA to pay for doctor’s visits and prescriptions, dental care (fillings and braces), and vision care (glasses and contacts).
Contribution Maximum Amount 2024-2025
Individual/Family: $3,200.00
Your contribution is deducted from your pay before taxes are withheld. Even if you are not enrolled in a TRS medical plan, you are still eligible for the Health Care FSA. Because of COVID-19, the IRS is allowing a maximum of $640.00 to be rolled over for the upcoming enrollment year.
Please be Advised :
- The plan year for 2022-2023 ended 8/31/2023.
- There is a 90-day runout (ending 11/30/2023) to submit claims that were incurred during the 2022-2023 plan year.
- After the 90-day runout period ends, Optum will rollover remaining funds (up to the IRS plan year maximum) for the 2023-2024 plan year.
Limited Purpose Flexible Spending Account (LPFSA)
What if I have an HSA and want to add an FSA?
You can have both the HSA and FSA; you must be aware that the HSA can only be used for your medical needs, and your LPFSA can be used for vision and dental expenses only if you are utilizing both types of accounts.
Dependent Care Flexible Spending Account (DC FSA)
The Dependent Care FSA is another excellent way to lower your taxable income and pay less in income tax. It can be used for certain dependent care expenses while you and your spouse (if you are married) work, look for work, or attend school full-time. Generally, you and your spouse can contribute up to $5,000 per plan year, depending on your circumstances. Please consult your tax advisor or IRS Publication 503 to determine whether to use the Dependent Care Flexible Spending Account or take the income tax credit on your federal tax return. Eligible dependent care expenses include payments to nursery schools, daycare centers, before- and after-school care, and summer day camp (but not overnight camp) for children 12 or younger.
Under the Dependent Care FSA, you can only be reimbursed up to the amount you have contributed to your account when your claim is received. You can choose how much to set aside in your Dependent Care FSA up to $5,000. You can be reimbursed any time during the plan year up to the total amount you have elected to contribute. Remember to use all the money in your account by November 15 of the following plan year.