Let’s Talk About Tax Savings Accounts

Whether you are new to tax savings accounts or if you renewed your account, you should take a moment to review some important reminders!

Flexible Savings Account (FSA)

A Healthcare Flexible Savings Account (FSA) is an employer-sponsored benefit that allows you to set aside pre-tax dollars into an account to be used for eligible medical, dental, and vision expenses. An FSA covers eligible expenses for you and your dependents, even if your dependents are not covered under your primary health insurance. You can begin to use your FSA funds as soon as the year starts.

To learn about eligible expenses, you can review the Eligibility List on the official FSA store website. You may incur the eligible expense and then submit a claim for reimbursement for your expenses. Otherwise, you can utilize your FSA debit card to pay for the expense directly. You can purchase eligible items from the official FSA store website: www.fsastore.com.

A few important notes about the Healthcare FSA:

• All eligible expenses must be incurred before the end of the calendar year

• You have until March 15th of the next calendar year to submit approved receipts or else those funds will be forfeited.

• FSA funds are subject to a rollover, but any funds above the rollover amount will be forfeited

• Each Open Enrollment, you must take action to elect your annual contribution amount for your FSA for the next year.

If you did not take action during Open Enrollment and you did not previously have an FSA, then you will not have one for this year. If you did not take action during Open Enrollment, but you did have an FSA during 2022, you may still have funds available (up to the rollover amount of $570). However, you will not be able to make additional contributions to the account.  

Dependent Care FSA (DCFSA)

A Dependent Care FSA allows you to set aside pre-tax dollars for dependent care expenses. You may choose an annual contribution amount of up to $5,000 per household. You must have funds in your DCFSA before you can spend them.

Limited Purpose FSA (LPFSA)

If you’re enrolled in the HDHP, a LPFSA works in conjunction with a Health Savings Account (HSA), which can be used on dental and vision expenses while the HSA is used on medical expenses.

Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax savings account which allows employees to pay for current health expenses and save for future qualified medical expenses. The HSA is unique though. The HSA is only available to employees on the Anthem High Deductible Health Plan (HDHP). In addition, employees must meet the eligibility requirements to open an account.

Unlike the FSA, you must have the funds in your HSA before you can spend them. Another key difference between an FSA and HSA, is that you own the HSA. This means that the money in the account is yours to keep and stays with you, even if you change medical plans or leave the County. There is no rollover limit or forfeiture of funds as your HSA will just continue to grow.

FSAs and HSAs

There a few similarities between these tax savings accounts. BCC is the third-party administrator for both FSAs and HSAs. Both accounts are administered using the BCC My SmartCare portal. You can access this portal by visiting: mywealthcareonline.com/bccsmartcare/.

If you previously had an FSA or HSA, you should have received a Benefits Debit Card. These cards are good for three years. If you card is not expired, you can continue to use it.

For those who are new to the FSA or HSA, you should have received a new card in the mail. You will use your card to setup your My SmartCare account.

For help, you can contact BCC by phone at (800) 685-6100 or by email at customersupport@benxcel.com. BCC can assist with questions regarding account balance, claim status, debit cards, eligible expenses, or other general questions.

More information on all three FSA accounts and the HSA can be found in the Employee Benefits Brochure. You can find additional resources on these accounts, submitting claims, and setting up your My SmartCare account by visiting the County Financial Wellness webpage.