CS Staff v2e— 2023-2024 | Page
Flexible Spending Accounts
Two types of flexible spending accounts (FSAs) allow you to spend untaxed income on eligible healthcare and child/adult care expenses.
HEALTHCARE FSA
This FSA offers a way to save up to 30% on eligible out-of-pocket
healthcare expenses for you and your dependents, such as medical, dental
and vision coinsurance and copays, prescription drugs, glasses/contacts/
LASIK and orthodontia. Many over‑the‑counter medications and supplies are
reimbursable, but some OTC medications require a prescription from a doctor.
For more on eligible expenses, go to tri-ad.com.
(TRI‑AD is our FSA
administrator.)
CHILDADULT CARE FSA
This FSA offers a way to pay for eligible child care, adult daycare and elder
care expenses on a tax free basis. You can participate if you pay someone to
care for these dependents so you can work:
•
Child(ren) under age 13
•
Elder parent or disabled dependent incapable of self‑care
Use funds for daycare, in‑home child care and after‑school care, or for
nonmedical nursing or nurse’s aide services and/or home care.
Benefit Year
July 1, 2023–June 30, 2024 Healthcare FSA
Any benefits‑eligible employee
may contribute:
•
Minimum: $120/year
•
Maximum: $3,050/year
Child/Adult care FSA
Any benefits‑eligible employee may
contribute:
•
Minimum: $120/year
•
Maximum: $5,000/year* ($2,500 if
married and filing separately)
You have 90 days following the end of
the benefit year to submit claims for
reimbursement to TRI‑AD. The claims
run‑out period ends: Sept. 28, 2024
* $1,200 if you earn more than $135,000 per year.
FSA PARTICIPATION ENDS
EVERY JUNE 30
FSA participation does not carry over
to the next benefit year. You must re‑
enroll each May during open enrollment
benefit year.
ANNUAL CONTRIBUTION
LIMITS
The maximum amount you are allowed
to contribute is set by law. Limits for
the current year are shown in the table
above.
The IRS requires an annual
nondiscrimination test to make sure
higher‑paid participants do not
disproportionately benefit from the
FSAs. If the plan fails that test, Cedars
Sinai must take corrective action. For
this reason, annual child/adult care FSA
contributions for employees earning
$135,000 or more a year will be limited
to $1,200.
CHILD/ADULT CARE FSA TAX CONSIDERATIONS
AND ELIGIBILITY
Federal tax credit: Federal tax regulations also make available a tax
credit for deductible dependent care expenses. Before you enroll in
the FSA, you may wish to investigate the federal tax credit and see
which provides the greater benefit. You may even be able to use
both the child/adult care FSA and federal tax credit, but not for the
same expenses. See IRS Publication 503 for more information or
ask your tax advisor which is better for you.
Filing your income tax return: If you participate in the child/
adult care FSA, you must complete an IRS Form 2441 (Child and
Dependent Care Expenses) and attach it to your federal income tax
return Form 1040. If you use a 1040A, attach a Schedule 2. On the
form, you show expenses reimbursed through the account.
Eligibility: In addition to the dependent eligibility rules above, you
must meet one of the following family status situations to have the
expense reimbursed from your child/adult care FSA:
You must be:
•
A single parent
•
Married and both you and your spouse work
•
Married; you work, and your spouse is a full‑time student,
looking for work or physically or mentally incapable of self‑care
•
The custodial parent (if you are divorced or unmarried and share
custody of your children)
USE-IT-OR-LOSE-IT
Estimate FSA contributions
conservatively; you must incur expenses
during the benefit year and submit claims
after the end of the benefit year.
Child/adult care FSA: Any unspent
money at the end of the benefit year is
forfeited.
Healthcare FSA: You can carry over up
to $610 in healthcare FSA funds to the
next year.
•
If you have money left in your
healthcare FSA at the end of the
benefit year (June 30, 2024), that
money is held for the next 90 days
(until Sept. 28, 2024) to pay for
any remaining claims for healthcare
services you received during the July 1,
2023–June 30, 2024 benefits year.
•
In early October 2024, up to $610 in
remaining funds will automatically be
carried over and available to spend
2024–June 30, 2025
benefits year. Any remaining funds
above the $610
For a complete listing of reimbursable healthcare and dependent care expenses, call the IRS at 800‑829‑3676
and request Publications #502 (healthcare) or #503 (child/adult care) or access them at: irs.gov