By using the Flexible Spending Accounts (FSAs), you can save on health care or dependent day care expenses by setting aside pre-tax dollars. You can contribute from $60 to $3,050 to the Health Care FSA and from $60 to $5,000 to the Dependent Day Care FSA ($2,500 if you are married and you and your spouse file separate income tax returns).
If you wish to contribute to a Health Care Flexible Spending Account and/or the Dependent Day Care Flexible Spending Account, you must make an active election every year. Elections DO NOT automatically roll over from year to year.
You can only use your FSA funds for eligible expenses incurred during the plan year. If you do not use all of the money in your FSAs for expenses that you incur before the end of the plan year, you lose it. Please be sure to anticipate your costs and FSA contributions carefully!
No Mid-Year Changes
If you elect to contribute to one or both of the FSAs, you will be allowed to stop contributing only if you experience a qualifying life event during the year. You’ll have 31 days from the date of your life event to stop contributions to your FSAs. Although you can’t restart your contributions once you stop them, you can continue to receive reimbursements for eligible expenses incurred up to the point you stopped contributions.
Health Care FSA
The Health Care FSA allows you to reduce your taxable income and reimburse yourself for out-of-pocket medical, dental and vision costs for you and all your eligible dependents. You can elect to contribute from $60 to $3,050 a year to the account.
NOTE: If you live in the U.S. mainland, enroll in the Bronze or Bronze Plus medical option, and elect to contribute to a Health Savings Account (HSA), money contributed to the Health Care FSA cannot be used for medical expenses until you meet your combined medical and prescription drug deductible. FSA money may only be used for dental and vision expenses, and for unreimbursed medical and prescription expenses after your deductible is met. (If you live in Hawaii, this note does not apply to you.)
A list of eligible expenses can be found on the Your Benefits Resources website at https://digital.alight.com/rus.
Call 1.800.953.2526 if you have questions regarding eligible Health Care FSA expenses. The Alight Smart-Choice Accounts section of the Your Benefits Resources website will provide you with additional information regarding FSAs.
Dependent Day Care FSA
The Dependent Day Care FSA reimburses you for certain dependent day care expenses, provided that you (and your spouse, if you’re married) work full-time.
The Dependent Day Care FSA helps you pay for dependent day care expenses—for your child or a disabled spouse or parent—with tax-free dollars. You can elect to contribute from $60 to $5,000 to the Dependent Day Care FSA ($2,500 if you are married and you and your spouse file separate income tax returns).
Eligible dependents for the Dependent Day Care FSA include:
- Children under age 13; or
- Dependents of any age that depend on you for more than half of their support and cannot care for themselves
Please note, if you are considered a highly compensated employee (HCE) in 2022, your Dependent Day Care FSA will be limited to $2,100. For 2023, you are considered “highly compensated” if you had gross earnings of $135,000 or more in 2022.
Using the Dependent Day Care FSA to fund expenses for the care of your family during the workday can also save you money in taxes, because your contribution dollars are deducted from your pay on a before-tax basis. Reimbursements for Dependent Day Care FSA expenses are made based on contributions made to date.
The types of expenses that can be reimbursed through the Dependent Day Care FSA include:
- Charges for dependent day care services at home or in a day care facility;
- Housekeeping expenses if a portion of these services is directly related to caring for the dependent; and
- Education expenses for children in nursery school.
For a complete listing of eligible expenses, please visit the Alight Smart-Choice Accounts section of the Your Benefits Resources website.
About the Dependent Day Care Federal Tax Credit
The Dependent Day Care FSA is an alternative to the dependent day care federal tax credit on your federal income tax return. As a result, federal law precludes you from using the same expenses for both purposes. Instead, federal law requires that the money you set aside in your Dependent Day Care FSA lowers—dollar for dollar—the amount you can apply toward the dependent care tax credit. The Dependent Day Care FSA is usually more advantageous to you if your household income is more than $24,000. Because every individual tax situation is different, you may want to consult a financial advisor to determine the best approach for you.
What You Can’t Use a Dependent Day Care FSA for:
- Babysitting during non-working hours;
- Care by providers who don’t supply a taxpayer identification number (Social Security number or employer identification number);
- Care by a family member who is under age 19 or someone you claim as a dependent on your tax return;
- Education costs for children in kindergarten or higher convalescent nursing home expenses; and
- Dependent health care expenses.
Benefits Express, through its Alight Smart-Choice Accounts website, is Ricoh’s FSA administrator.
The Alight Smart-Choice Accounts Website
You’ll find useful information and tools to help you manage your FSA account(s) through the Alight Smart-Choice Accounts website. Among the features of this website, you’ll be able to:
- Submit your FSA claims and review FSA claim status;
- Learn about eligible FSA expenses;
- Check your current FSA balance(s); and
- Get information about the new Health Care FSA debit card program.
The Alight Smart-Choice Accounts website is available 24 hours a day, seven days a week from any computer with Internet access. You can access the site via a link from the Your Benefits Resources website.
The Health Care FSA Debit Card Program
If you enroll in the Health Care FSA for the first time for at least $100, you will receive an Alight Smart-Choice Accounts debit card, which is a special Mastercard debit card that you can use to pay for eligible health care expenses. Using the debit card is easy and more convenient than submitting claim forms because your eligible health care expenses will be deducted automatically from your Health Care FSA. Be sure to retain all receipts for your health care spending account purchases as supporting documentation may be required.
After you complete your OnePlus enrollment elections and elect to contribute to a Health Care FSA for the first time, detailed information regarding the Health Care FSA debit card program will be mailed to your home address. Please note that the debit card program is only available for the Health Care FSA; it is not available for use with the Dependent Day Care FSA. You must elect at least $100 into your Health Care FSA to be issued a debit card.
Keep in mind that you are not permitted to transfer dollars between flexible spending accounts. Once designated for the Health Care FSA or Dependent Day Care FSA it must remain in that account.