Benefits Administration

Public Service Center
250 4th Street S., Room 100
Minneapolis, MN 55415
Ph: (612) 673-3333                         Fax: 612-284-7989

Health Care Flexible Spending Account

Eligible Health Care Expenses

A health care flexible spending account (FSA) is a pre-tax benefit account used to pay for eligible medical, dental, and vision care expenses that are not covered by your insurance plan or elsewhere.

Despite the general rule stated above:

The IRS determines which expenses are eligible for reimbursement. You can search for eligible expenses on the WageWorks website and watch this short video that explains a health care FSA.

Using Your Account

There are several ways to access your Minneflex health care account:

Health Care FSA Carryover

Beginning with the 2016 plan year, any unspent funds greater than $25 but less than or equal to $500 that remain in your health care FSA at the end of 2016 will be carried over to the 2017 plan year. This carryover feature does not apply to the dependent care FSA. In addition, your entire 2015 health care FSA contribution is still subject to the "use it or lose it" rule.

Carryover Frequently Asked Questions

Do carryover funds affect the health care FSA contribution maximums? No. Carryover funds are in addition to the annual limit on the health care FSA contributions ($2,600 for 2017).

When will the remaining prior plan year funds carryover into the new plan year? Carryover funds will be available on the first day of the new plan year. However, the amount of the carryover will not be determined until the end of the run-out period for the previous plan year.

During the run-out period, which account will be used first – the 2017 account or the carryover amount from the 2016 account? The 2017 (current) account will pay first and the 2016 (carryover) account will pay second. After the run-out period, any amount between $25 and $500 remaining in the 2016 will be added to the 2017 account balance.

Does an employee need to elect an FSA for the following plan year to have the FSA funds carryover? No.

Why aren’t amounts less than $25 eligible for carryover? The administrative fees and managerial tasks associated with accounts less than $25 would exceed the value provided to an employee for that account.

Is the carryover option available for the dependent care FSA? No, the carryover option is for the health care FSA only.

Health Care FSA Carryover Example

Last updated Oct 26, 2016