A healthcare FSA allows employees to set aside pretax dollars to pay for qualified medical, dental, and vision expenses. While FSAs typically are funded through employee contributions, employers may contribute to them as well.
Employees can use funds saved in a healthcare FSA for eligible expenses such as
Once enrolled, the employee receives a Visa healthcare debit card from Further, a leading FSA administrator, as a convenient way to pay for eligible expenses.
An employer may offer a healthcare FSA to employees who enroll in the PPO or EPO medical option, or employees who enroll in a qualified healthcare plan other than those offered through the Benefits Plan of the Presbyterian Church (U.S.A.).
A minister of the Word and Sacrament employed by a congregation is eligible to participate in FSAs. An employed minister is considered an employee for federal income tax purposes even though he or she is considered self-employed for Social Security purposes (paying SECA instead of FICA).
A self-employed individual is not considered an employee for FSA purposes, and therefore, is not eligible to participate.
Contributions are made to a healthcare FSA on a pretax basis, and distributions for qualified expenses are tax-free. Unused funds are lost at the end of the plan year, so it is important for employees to estimate expenses carefully each year they enroll in an FSA.
Eligible employees may make healthcare FSA contributions through pretax payroll deductions, up to annual limits set by the IRS. The annual contribution limit for 2019 is $2,700.
Employers will be charged $3.90 per employee per month for each employee who establishes a healthcare and/or dependent care FSA. Only one fee will be charged per employee, whether the employee has one type of FSA or both. Further, a leading FSA administrator, will bill each employer directly for this monthly fee. There are no set-up or other annual fees for these accounts.
Employers with FSA-related questions should call Further Employer Support at 855-363-2583 between 8 a.m. and 5 p.m. CT, Monday through Friday, or email them.
For other questions, call the Board of Pensions at 800-773-7752 (800-PRESPLAN).