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  • Flexible Spending Account (FSA) Information

    Flexible Spending Account (FSA) Information

    Important Updates about the Flexible Spending Accounts (FSAs)

    • Unlimited carryover
      • Allows unlimited carryover of all unused Health Care FSAs and Dependent Care FSAs ( DCFSAs) funds for 2020 and 2021 plan years
    • Extended Grace Periods
      • Allows the grace period to be extended to 12 months (from 2-1/2 months) for Health FSAs and DCFSAs with plan years ending in 2020 or 2021
    • Spend-down provision
      • Allows spend-down of Health FSA and DCFSAs for employees who cease participation for the calendar year 2020 and 2021 (considering any extension of the grace period)
    • DCFSA age limit increase
      • For members enrolled in the DCFSA as of January 31, 2020 who have unused balances, allows expenses for dependent children to age 14
      • New limit for Dependent Care FSA for calendar year 2021 only;
        • For single taxpayers and married couples filing jointly - $10,500 (up from $5000) per year
        • For married individuals filing separately - $5,250 (up from $2,500) per year
    • Election change allowance
      • For play years ending in 2021, election changes are permitted for both Health FSAs and DCFSAs without regard to change in status rules. Employees can increase or decrease their contribution amount during the calendar year (increase only permitted to calendar year maximums, decreases are only permitted to the current amount deducted from payroll)

       

      Contact the Benefits Services office at pgcps.benefits@pgpcs.org for more information or to submit a enrollment/change form
    • FSA Health Care form
    • FSA Dependent Care form

     

    Start Saving with Flexible Spending Accounts (FSAs)

    Did you know FSAs offer you significant tax savings? As a pre-tax benefit, the money you contribute into these accounts is deducted from your paycheck before taxes are calculated. You save whatever percentage you would have paid on that money in federal taxes. The amount of taxes you pay will be less, and, in some cases, your tax savings can be significant.

    Use the FSA calculator to find out how much money you could save: www.wageworks.com/employees/calculators/.

    PGCPS offers you two Flexible Spending Accounts (FSAs) to help you save money on everyday expenses from medical costs to child care:

    Healthcare Flexible Spending Account – contribute up to $2,750 per year (for 2021)

    Dependent Care Flexible Spending Account UPDATED  – contribute up to $5,250 (up from $2,500) per year, if married and filing separate income tax returns or up to $10,500 (up from $5,000) per year, if single or married and filing joint income tax returns.

    You can use the money in your Healthcare FSA (HCFSA) to pay for medical copayments and deductibles, as well as certain other covered medical and dental expenses. A Dependent Care FSA (DCFSA) can be used to pay for eligible dependent care services, such as preschool, summer day camp, before or after school programs, and child or adult daycare. If you want to participate in an FSA, you must enroll each year.

    Take the time now to learn more about FSAs, calculate your potential tax savings and then enroll in the Healthcare FSA (HCFSA) and/or the Dependent Care FSA (DCFSA).

     

    To submit your claims online at www.wageworks.com.

    Visit the WageWorks website to learn more about how the rollover works
    Visit the IRS website to learn more about FSAs (section 125)

        

    A Flexible Spending Account (FSA) allows you to set aside pre-tax dollars (reducing your taxable income) for daycare/dependent care and or health care expenses and to receive tax-free reimbursement for your eligible out-of-pocket expenses.  

    2021 Information   

    Health Equity | WageWorks

    WageWorks Information

    Know Before You Enroll in FSA

    If you enroll in a FSA program at any point during the calendar year (Jan.-Dec.), please note that the amount elected is divided over the remaining pay periods in that year. For example:

    Scenario 1
    If an employee is hired in September and elects to participate in FSA dependent care in the amount of $5,000 for the calendar year, FSA becomes effective in October. The annual amount elected ($5,000) will be deducted from the remaining six pay dates in that year. Between October through December, $833.33 will be deducted on a pre-tax basis from the employees bi-weekly pay. Eligible expenses must be incurred during the calendar year (between October and December 31).

    Scenario 2
    If an employee is hired in September and elects to participate in FSA health care in the amount of $300 for the calendar year, FSA becomes effective in October. The annual amount elected ($300) will be deducted from the remaining six pay dates in that year. Between October through December, $50 will be deducted on a pre-tax basis from the employees bi-weekly pay. Eligible expenses must be incurred during the calendar year (between October and December 31).  

    IRS Information regarding FSA