FLEXIBLE SPENDING ACCOUNTS

Flexible Spending Accounts (FSAs) are employer-sponsored benefit programs that allow employees to set aside a portion of their pre-tax earnings to cover qualified medical expenses or dependent care costs. These accounts offer individuals a tax-advantaged way to budget for anticipated healthcare or childcare expenses throughout the year. The allocated funds can be used to pay for various medical services, prescription medications, and eligible dependent care services, providing a valuable financial cushion for families. 

One significant feature of FSAs is that the funds must be used within the plan year (or a grace period) determined by the employer.  Any remaining balance at the end of this period is forfeited, commonly referred to as the "use it or lose it" rule.  Overall, FSAs serve as a convenient and tax-efficient tool for managing healthcare and dependent care expenses while reducing taxable income.

Medical and dependent care flexible spending accounts will continue to be administered through Chard Snyder.  The 2025 contribution limits are $3,300 (medical) and $5,000 per household or $2,500 per year if married filing separately (dependent care).  

Employees are required to enroll in medical and/or dependent care flexible spending accounts each year using Employee Navigator/BNYU or by scheduling an appointment with a BOST Benefits representative.

Per the Internal Revenue Service (IRS), employees enrolled in the HDHP plan may NOT enroll in a medical flexible spending account.