BNY Mellon Benefits Guide
Important FSA Rules
Because of the tax advantages they offer, FSAs must adhere to certain federal rules, including:
- You must decide how much to contribute before the year begins. Once you make your election, you cannot stop, start or change contributions unless you have a qualified life event. See "What Is a Qualified Life Event?" in Changing Coverage for more details on qualified life events.
- You may carry over up to $500 left in your Health Care FSA at the end of the year to the following year.
- "Use it or lose it." You must use the full amount in your Dependent Care FSA, or you will forfeit any money left over. You will forfeit any amount greater than $500 left in your Health Care FSA. You will have until June 30, 2020, to claim reimbursement for eligible expenses incurred during 2019.
- You cannot transfer contributions between accounts, and (with the exception of the $500 Health Care FSA carry-over) you cannot use contributions from one year to pay for any other year's expenses.
- You cannot "double-dip." If you are reimbursed from the Health Care FSA, you cannot receive reimbursement for these same expenses through a Health Savings Account or a health reimbursement account, nor deduct those expenses on your federal income tax return.
- You cannot claim childcare or eldercare expenses on both the Dependent Care FSA and the federal Dependent Care Tax Credit.