Flexible Spending Accounts

Flexible Spending Accounts (FSAs) offer a significant tax savings opportunity.

As a participant, you may set aside a portion of your salary before Social Security, federal income tax, and in some cases, state and local taxes are deducted. You can then use the money to reimburse yourself for eligible health care and dependent care expenses incurred during the year. Please see the IRS website for more information about eligible health and dependent care expenses. Your dependents do not have to be covered by any other Brookfield plan for expenses to be eligible for FSA reimbursement. 

Health Care FSA: allows you to set aside pre-tax dollars to pay certain out-of-pocket health care expenses. You can contribute up to the maximum annual limit of $3,050 as permitted by IRS regulations. Reminder: Over-the-counter medications without a prescription are no longer covered. 

Dependent Care FSA: allows you to set aside pre-tax dollars to pay for day care services that allow you (and your spouse or domestic partner) to work, look for work or go to school. You can contribute up to $5,000 per year ($2,500 if you are married and file separate tax returns). 

Limited Purpose FSA: is much like the Health Care FSA. However, under a Limited Purpose FSA, eligible expenses are limited to qualifying dental and vision expenses for you, your spouse and your eligible dependents. You may only participate in the Limited Purpose FSA if you are enrolled in the HDHP and NOT enrolled in the Health Care FSA. 

IMPORTANT FSA DETAILS

  • The IRS requires that you use the full amount(s) you contribute to FSAs for eligible expenses during the plan year. Any funds remaining must be forfeited
  • Brookfield provides a 75-day grace period. You have until March 15, 2024, to spend 2023 contributions (Note: Claims must be submitted before March 31, 2024)
  • You cannot stop or change your FSA contributions during the plan year unless you have a Qualifying Life Event Change
  • Even if you use your FSA debit card for valid medical expenses, the IRS requires you to save your receipts. In addition, the program administrator may require that you supply receipts for certain eligible expenses throughout the year