Flexible Spending Account (FSA)

A Flexible Spending Account (FSA) plan with Chard-Snyder allows you to set aside pre-tax dollars to cover qualified expenses you would normally pay out of your pocket with post-tax dollars. The plan is comprised of a full purpose, limited purpose, dependent care flexible spending account. You pay no federal or state income taxes on the money you place in an FSA.

The FSA Plan Year runs from January 1st through December 31st.

Full Purpose FSA:

Lets you pay for certain IRS-approved medical, dental, vision, and pharmacy expenses not covered by the insurance plan with pre-tax dollars. The annual maximum contribution limit is $3,400.

If you’re enrolled in the Surest Plan, you are eligible for the full purpose FSA. If you’re enrolled in the Base HDHP Plan, you are ineligible for a full purpose FSA.

Limited Purpose FSA:

If you are participating in a Health Savings Account (HSA), regulations state that you can only participate in a Limited Purpose FSA.

A Limited Purpose FSA allows you to set money aside, up to $3,400, deducted pre-tax from your paycheck, into an account to reimburse you for qualified dental and vision expenses. These expenses include dental, and vision for yourself and your eligible dependents that are not reimbursed from insurance or any other source.

Dependent Care FSA:

All Employees are eligible to set aside a portion of their salary, up to $7,500 for joing filers and $3,750 for those filing separately to be deposited into a Dependent Care FSA. This account can then be used to pay for eligible dependent care expenses to allow you and your spouse, if you are married, to work, look for work, or attend school full-time. Eligible dependents include children under age 13 or children who are physically or mentally incapable of self-care and, in some cases, elder care.

The FSA Plan Year runs from 1/1/2026 through 12/31/2026.

How an FSA works:

Choose a specific amount of money to contribute each pay period, pre-tax, to one or both accounts during the year.
The amount is automatically deducted from your pay at the same level each pay period.
As you incur eligible expenses, you may use your flexible spending debit card to pay at the point of service OR submit the appropriate paperwork to be reimbursed by the plan.

Maximum Annual Election
Full Purpose FSA	$3,400
Limited Purpose FSA	$3,400
Dependent Care FSA	$7,500 for joint filers / $3,750 for those filing separately

Important rules to keep in mind:

FSA is generally a “use it or lose it” account, but the carryover feature helps you save up to $680 in unspent funds.
Once you enroll in the FSA, you cannot change your contribution amount during the year unless you experience a qualifying life event.
You cannot transfer funds from one FSA to another.

Please plan your FSA contributions carefully, as any funds not used by the end of the year will be forfeited. Re-enrollment is required each year.

Flexible Spending Account (FSA)