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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 2022, you may contribute up to $2,850 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 2022, you may contribute up to $2,850 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 2022, 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 HC-FSA and LP-FSAs, you can use your FSA debit card to pay for eligible expenses or file claims online for reimbursement. You will need to file a claim for Dependent Care FSA reimbursement.

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. 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.

    For 2020 contributions:

    • Employees have until December 15, 2021 to incur a claim for their 2020 FSA balance.
    • Employees have until December 31, 2021to file for reimbursement using their 2020 balance.

    For 2021 and 2022 contributions, the normal grace period will apply : 

    • Employees have until March 15, 2022, to incur a claim for their 2021 FSA balance.
    • Employees have until March 31, 2022, to file for reimbursement using their 2021 balance.
  • I have an existing FSA Balance with Optum, will I file for reimbursement with Optum Bank or HSA Bank?

    Existing funds with Optum Bank will remain with Optum Bank. You will continue to use your Optum debit card and/or file for reimbursement with Optum Bank, for any FSA-eligible expenses with a date of service before March 15, 2022. You are eligible to file for reimbursement through March 31, 2022

    If you re-enrolled in a flexible spending account for 2022, you will receive a new debit card from HSA Bank the last week of December 2021. All 2022 contributions will be sent to HSA Bank. 

    Log into your account with Optum Bank to file for 2021 reimbursements. 

  • Do I need to approve the transition to HSA Bank?

    No, you do not need to approve the transition to HSA Bank. Beginning January 1, 2022, HSA Bank will be the new FSA vendor and your contributions will automatically be sent to HSA Bank. 

    If you have an existing balance as of December 31, 2021, you will continue to use your Optum Debit Card and/or file for reimbursement with Optum through March 31, 2022. 

    See the FSA Transition Document for more information.

  • How do I access my 2022 FSA contributions with HSA Bank?

    You’ll receive an HSA Bank welcome kit in the mail approximately 1 week before January 1, 2022. The welcome kit includes a program overview document, and Privacy and Opt-Out Notice. Once you receive your welcome kit, sign up for online account access with HSA Bank. With online access, you can add an external bank account for direct deposit claim reimbursements and review your notification preferences to set up email and text alerts.

    In a separate mailing approximately 1 week before January 1, 2022, you’ll receive your HSA Bank Health Benefits Debit Card which makes accessing the money in your FSA easy.

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).