The Internal Revenue Service is reminding eligible employees that now is the time to begin planning to take full advantage of their employer’s health flexible spending arrangement (FSA) during 2019.
FSAs allow employees to use tax-free dollars to pay medical expenses not covered by other health plans. Eligible employees need to decide how much to contribute through payroll deductions before the plan year begins, so many employers are offering their employees the option to sign up now for participation during the 2019 plan year.
Employees who want to contribute to an FSA must make that choice for 2019, even if they contributed in 2018. Self-employed individuals are not eligible.
Employees may contribute up to $2,700 during the 2019 plan year, which is a $50 increase over 2018. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax. If the plan allows, the employer may also contribute to an employee’s FSA.
Throughout the year, employees can use the FSA funds to pay qualified medical expenses not covered by their health plan, including co-pays, deductibles and a variety of medical products and services ranging from dental and vision care to eyeglasses and hearing aids. Interested employees should check with their employer for details on eligible expenses and claim procedures. Read More at HR Watch Dog/CalChamber