Flexible Spending Accounts

Save Money on Healthcare and Dependent Care

HSA Bank Flexible Spending Accounts (FSAs) can save you money on everyday expenses. Your contributions to these accounts are tax-free, saving you money on federal, state income taxes and Social Security taxes.

Flexible Spending Accounts

USG offers employees the option of several different types of Flexible Spending Accounts. These FSAs can help you save money on healthcare and dependent care expenses.  

  • Healthcare Flexible Spending Account (HC-FSA)
  • Limited Purpose Flexible Spending Account (LP-FSA)
  • Dependent Care Flexible Spending Account (DC-FSA)

Plan Carefully!  Money left in your FSA at the end of the grace period (see below) is forfeited and cannot be returned to you. This is called the “use it or lose it” rule.  

  • Healthcare FSAs

    The Healthcare FSA is used for eligible out-of-pocket expenses for healthcare, prescription, dental and vision goods and services for you and your eligible dependents. For 2024, you may contribute up to $3,200 annually.  

    For a list of eligible expenses, refer to IRS Publication 502.

  • Limited Purpose FSA

    A Limited Purpose FSA (LPFSA) is an additional tax-free account for employees enrolled in the Consumer Choice HSA healthcare plan. A Limited Purpose FSA can only be used to reimburse eligible dental and vision expenses. For 2024, you may contribute up to $3,200 annually.

    Why participate in an LPFSA? Your HSA contributions are limited to a certain amount each year. When you add an LP-FSA for dental and vision expenses, you can make additional pre-tax contributions, thus reducing your taxable income. However, like a normal FSA, an LPFSA is a “use it or lose it” account (with grace period), so plan carefully.

  • Dependent Care FSA

    The Dependent Care FSA is used for eligible expenses for children under age 13 or elderly parents. These include daycare, elder care and summer camps. For 2024 you may contribute up to $5,000 annually, or up to $2,500 annually if you are married and file separate tax returns.

    For a list of eligible expenses, refer to IRS Publication 503.

How FSAs Work

  • FSAs (Healthcare, Dependent Care, and Limited Purpose) must be elected during your new hire eligibility period and re-elected each year during Open Enrollment for the next year. You are not automatically re-enrolled each year.
  • Decide how much you want to contribute for the calendar year.
  • Pre-tax contributions are withheld from your paycheck in equal amounts over the calendar year.
  • For all FSAs, you can use your FSA debit card to pay for eligible expenses or file claims online for reimbursement.
  • You can also setup a reoccurring claim reimbursement for Dependent Care FSA's.

Frequently Asked Questions

  • How Long You Have to Use FSA Contributions

    USG provides a grace period of 2½ months after the end of the calendar year for active employees. This means you can continue to incur eligible expenses through March 15 and submit for reimbursement before March 31 of the following year, giving you a little more time to use up your FSA balances.  

    This grace period applies to all FSAs

    • Active employees have until March 15, 2024, to incur a claim for their 2023 FSA balance.
    • Active employees have until March 31, 2024, to file for reimbursement by supplying all supporting documents using their 2023 balance.
  • What happens to my flexible spending account if I terminate my employment with USG?

    If you terminate your employment with USG, you have 90 days to file for reimbursement under the plan.  The date of service on any claims submitted must be equal to or fall before the end of the month in which you terminate.

Moving from an FSA to an HSA?

If you change from a Healthcare FSA one calendar year to an HSA the next calendar year, IRS rules state that your Healthcare FSA balance must be zero on December 31 or you will not be able to contribute to your new HSA until April 1 of the following year (after the grace period ends).