The Flex Spending Account is a state benefit that allows eligible employees to pay for certain expenses with pre-tax dollars. The account offers two benefits: the Health Care Spending Account (HCSAccount) and the Dependent Care Advantage Account (DCAAccount).
Health Care Spending Account
The HCSAccount allows employees to set aside from $100 to $2,550 annually in pretax salary to pay for health-care expenses not reimbursed by health insurance.
Dependent Care Advantage Account
The DCAAccount allows employees to set aside up to $5,000 annually in pretax salary for eligible child care, elder care, or disabled dependent care expenses. The DCAAccount employer contribution is available in 2016 for M/C employees or employees represented by CSEA, UUP, NYSCOPBA, or GSEU. Pending conclusion of collective bargaining and ratified contracts, the employer contribution may also be available to state employees in other negotiating units. For employer contribution rates, visit Flex Spending Account.
What’s the catch? Use-it-or-lose-it!
You must estimate your expenses carefully. If you overestimate your costs you lose any money that remains in your account at the end of the calendar year. Note: The State of New York is aware that the IRS announced changes to the Use-It-Or-Lose-It Rule for health flexible spending arrangements. The State of New York is currently reviewing the IRS ruling, so it has not made a decision to change the Health Care Spending Account rules at this time. Employees should NOT assume that the changes will be adopted when calculating their annual election amounts for the plan year.
Eligibility Requirements and Enrollment
For program details or to enroll in the FSA, visit www.flexspend.ny.gov or call the FSA hotline at (800) 358-7202.
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