Flexible Spending Accounts

Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars to pay for eligible health and dependent care expenses. Each year, you must elect the annual amount you want to contribute to one or both accounts. Your contributions will be deducted pre-tax from your paycheck which can help reduce your taxable income.

Health Care FSA

The Health Care FSA will reimburse you for eligible health care expenses that you, your spouse, and your children incur during the plan year. When you incur an eligible expense, you can use your WEX Benefits Card and/or submit documentation for reimbursement. When you elect in a Health Care FSA, you do not have to wait until the money accumulates in your account before you spend it on Heath Care-related items.

Dependent Care FSA

The Dependent Care FSA lets you use pre-tax dollars to pay eligible daycare expenses for children age 12 and under, or elder dependents who are unable to care for themselves so that you (and your spouse, if married) to gain employment. Care can be provided through live-in care, babysitters, or licensed daycare centers. Claims are reimbursed as you accumulate funds and after services have been rendered.

Limited Purpose FSA

The Limited Purpose FSA works in combination with a Health Savings Account (HSA) to help you save money to pay for eligible dental and vision expenses only. You must be enrolled in the HDHP with HSA medical plan to be eligible for a Limited Purpose FSA.

Rules to Keep in Mind

FSAs offer significant tax advantages, but are subject to IRS regulations:

• The plan year for the Health Care and Dependent Care FSAs is January 1 through December 31. You have until March 15 of the following year to incur claims. The deadline to submit claims is March 31 of the following plan year.
• The IRS has a strict “Use-It or Lose-It” rule for FSAs. Any remaining funds will be forfeited.
• Once you enroll in the FSA, you can only change your contribution amount if you experience a qualified life event.
• Each account functions separately. You cannot transfer funds from one FSA to another.

Health Savings Account (HSA)

How does an HSA Work?

The Health Savings Account (HSA) allows you to build tax-free savings for health care expenses. You can make before-tax deductions from your paycheck into your HSA, allowing you to save money by using tax-free dollars to pay for eligible medical, prescription, dental, and vision expenses.

Keep your money.

Unlike an FSA, the money in your HSA is always yours to keep and can be rolled over from year to year. You can take your unused balance with you when you retire or leave iHerb.

Earn interest and invest for the future.

Once your interest-bearing HSA reaches a minimum balance of $1,000, you can invest in a variety of no-load mutual funds similar to 401(k) investments. You can learn more by logging in to your WEX Leap account.