(866) 855-6468What are FSA and HSA Accounts
Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are programs that make it easy for you to receive significant tax benefits when you pay for qualified out-of-pocket medical expenses.
You can use a pre-loaded debit card or get reimbursed from an FSA or HSA account after you make your purchase or a combination of both methods.
Each has its own advantages and disadvantages. That's why it's important to determine which is right for you if you have the choice.
For example, with an FSA you have instant access to the funds. You decide how much you want to put aside (within the maximum permitted) and your employer funds the account upfront for you. You pay your employer back in installments through set payroll deductions. This avoids having to come up with a large sum of money all at once.
You may have heard of the "Use It Or Lose It" rule. Fortunately the IRS modified it at the end of 2019. Now your employer has the option to permit you to roll over up to $500 of your FSA funds (with some restrictions). Check with your plan administrator.
An HSA is more clear-cut. You may roll over all of your savings with no restrictions. But unlike an FSA, your employer does not fund your account upfront. Your funds become available as you add them. Your employer has the option to contribute to your HSA just like they can with an FSA.
We're A 90% Merchant!
The majority of MintRx prescriptions, including our custom-made medications, and certain over-the-counter items, at-home lab tests and acne treatments are eligible for purchase using your FSA and HSA savings account. In fact, we're an approved and registered 90% merchant. This means that 90% or more of our revenue is generated from the sale of FSA/HSA-qualified items. To help you identify these products, we've marked them with a badge.
Just remember that all FSA- and HSA-authorized products must be purchased separately from non-eligible items.
If you have any questions, contact us at.
Comparison between FSA and HSA
HSA: Yes
HSA: Yes
HSA: Immediate
HSA: Save for tax purposes; may be required for reimbursement
HSA: Yes, if you have your own HDHP
HSA: Yes
HSA: Yes, but optional. You may also self-fund
HSA: Yes (decided by employer; not required)
HSA: Yes
HSA: Yes
HSA: None
HSA: $3,550
HSA: $7,100
HSA: Yes
HSA: Yes
HSA: Yes
HSA: $1,000 for 2020 for self and family
HSA: Yes
FSA FAQs
These are FSA "use it or lose it" exceptions:
Rollover or extension: Your employer is permitted to allow you to roll over up to $500 or permit a 2.5 month grace period to file claims for expenses incurred during that plan year but this is up to each individual workplace. Your employer cannot grant both the roll over and the 2.5 month extension.
90-day runout period: After the end of a FSA plan year, there is a 90-day runout period in which claims can still be submitted for expenses during the plan year after the end of the regular plan year end. The runout period applies to terminated employees or canceled plans. The runout period can be used for both Health Care and Child & Elderly Care FSAs.
No, unless you meet certain Qualifying Life Events (QLE).
QLE's include:
- Change in legal marital status (i.e., marriage, legal separation, divorce, or death of employee's spouse).
- Change in employment status (for employee, their spouse, or dependent) that affects eligibility for health insurance benefits.
- Change in number of tax dependents. For example, if one of your dependents turns 26, you may want to reduce your contribution to reflect the loss of that dependent.
- Birth or date an employee adopts a child, or placement for adoption.
- Death of spouse or dependent.
- Change in dependent’s eligibility (for example, employee's child reaches age 13 where he/she is no longer eligible under a Child & Elderly Care FSA).
- For Child & Elderly Care FSA only, a change in child care/elder care provider or cost or coverage, such as a significant cost increase charged by the current day care provider, or a change in the day care provider.
You have 30 days from the QLE to make changes or enroll in an FSA. The change to the FSA or the enrollment into the FSA will be effective the first of the month in which you incurred the QLE. Check with your FSA administrator for all details.