A flexible spending arrangement (FSA) is a form of cafeteria plan benefit, funded by salary reduction, that reimburses employees for expenses incurred for certain qualified benefits. An FSA may be offered for dependent care assistance and medical care reimbursements.

How much can I allocate?
The IRS limits dependent care contributions to $5000 per tax year for joint returns. Additionally, employers set the medical reimbursement plan limit, which is set up to the IRS maximum of $3050.

Can my medical and dependent care expenses be combined?
No, the IRS requires separate accounts to be funded for medical and dependent care expenses.

How do I know if an expense is eligible?
You can refer to the IRS Publication 502 for a list of eligible expenses. Additionally, you may find a partial list on the Cafeteria Plan website.

How do I keep track of my balance?
To keep track of your balance, you can set up online access by visiting www.cpa125.com.

How long does the plan last?
The plan year runs for twelve months, meaning that employees need to enroll in each year's plan.

What if I want to change my allocation during the year or terminate my employment?
You can make changes to your allocated amount annually only during open enrollment. However, the IRS allows certain changes in the event of a "change in status" qualifying event, such as birth, death, marriage, divorce, or a change in you or your spouse's employment. If you terminate your employment, your participation in the plan will cease on your termination date.

Will I get my money back if it is not used?
The amount allowed to roll over is $610.00. If your 2023 healthcare balance rolls, it will automatically roll into 2024 in the first week of April. This rollover takes place after the 90-day runout, which is when employees submit services incurred in 2023 for reimbursement.

How will I get reimbursed for expenses?
If your plan offers a prepaid debit card, you will receive two cards in the mail upon enrollment. Activate the card and present it when paying for services or expenses. If you cannot use the prepaid debit card or fail to use it, you can submit a manual claim form with itemized receipts after incurring the service/expense. You can submit claims as frequently as you like, but no later than the grace period deadline after your plan year ends, typically within 90 days. Note that dependent care accounts must have funds available before payment can be made.

- The calendar for the Flexible Spending Account (FSA) runs from January to December. The annual Open Enrollment period takes place in November of each year. For new hires, it's important to estimate the amount needed from the date of hire until the end of December.