How they work and why you want to participate
A Flexible Spending Account (125 FSA) allows you to set aside pre-tax dollars from your paycheck to be used for paying out of pocket for eligible health and dependent care expenses which lowers your taxable income and increases your take home pay because contributions you make to your 125 FSA are not reported as income to the IRS.
- Enroll by the 1st of the month following 30 days of employment during your enrollment period (or during annual Open Enrollment)
- Must be an active, full-time worker working a minimum of 30 hours per week
How the Plans Work
You determine the annual amount of your contributions to a plan for the plan year. When you have eligible expenses, you pay them from your account(s) through your Benefits MasterCard or pay out-of-pocket and submit a claim for reimbursement.
The Healthcare FSA lets you set aside pre-tax funds via payroll deductions. You can use the money to reimburse
yourself for eligible medical, dental and vision expenses. In 2021, you can contribute up to $1,500. Any unused funds left in the Healthcare FSA on December 31st of each plan year or after your termination date will be forfeited, except for balances up to $550 that can be carried over into the next plan year, if you’re an active employee and re-enroll in the plan. To see all eligible expenses, visit: www.fsastore.com/FSAEligibility-List.aspx
Dependent Care FSA
This benefit is designed to help you pay for eligible expenses you incur for childcare, or for the care of a disabled dependent, while you work or attend school. Childcare expenses may include day care, nursery school costs, or after-school programs. Employees may defer up to $5,000 pre-tax per year. Funds do not rollover to the next year.
If you enroll in a FSA, a benefit card will be mailed to you from PlanSource and you will use this card to make payments. Please remember that if you make a payment and forget to use your Benefits card, be sure to save your receipts just in case PlanSource requests a copy for verification and reimbursement purposes.
- All receipts should be itemized to reflect what product/ service was paid for and must include the date of service.
- You can only change FSA amounts during Open Enrollment or within 30 days of a Qualified Life Event.
- You must be an active worker and re-enroll in the FSA plan each year during Open Enrollment. Your FSA enrollment will not automatically rollover.
- Any monies left in the Health Care Flexible Spending Account on December 31st of each plan year will be forfeited, except for $550 that can be carried over into the next Plan Year only if you re-enroll.
What Happens to my FSA After My Engagement Ends?
- Medical and/or Dependent Care FSA claims may be submitted up to 60 days following your termination date, however the dates of service on all claims/ receipts must be prior to your date of termination. If you do not elect to continue Medical Care FSA through COBRA, any unused funds remaining in your account after your date of termination and/ or after the plan year are forfeited per IRS regulations.
- Dependent Care FSA is not eligible to be continued on COBRA as it is not a group health plan.
FSA Plan Resources and Information
TargetCW’s FSA plans are administered by PlanSource. All materials are available on PlanSource’s website such as an FSA Guide which includes lists of eligible items, information about how to contact PlanSource, how to file a claim online or where to mail or fax a claim, etc. PlanSource also offers a FREE, mobile app available on your Apple or Android devices, My Benefits Accounts!