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For federal employees enrolled in the Federal Flexible Spending Account Program (FSAFEDS) during 2024, now is the time to ensure that they have submitted all of their 2024 FSAFEDS claims. All health care and dependent care claims must be received by HealthEquity, Inc. (who administers the FSAFEDS program) by April 30, 2025. Any claims submitted after April 30,2025 will not be reimbursed.
If an employee did not re-enroll in a 2025 health care flexible spending account (HCFSA) or in a limited expense flexible spending account (LEXHCFSA) during the 2024 FSAFEDS open season (held November 11, 2024 through December 9, 2024), then any remaining funds in their accounts were forfeited as of December 31, 2024.
Important Reminders for 2024 FSAFEDS Claims
1. Health Care FSA (HCFSA) and Limited Expense Health Care FSA (LEXHCFSA) Carryover. An employee may carry over up to $640 of unused 2024 HCFSA/LEX/HCFSA funds into 2025 but all 2024 claims must be submitted by April 30, 2025. To be eligible for carryover into 2025, an employee: (1) Must have an active HCFSA/LEXHCFSA account on December 31, 2024; and (2) Must have re-enrolled in an HCFSA or LEXHCFSA during Open Season for 2025. Carryover funds will be available in late May 2025 after all prior-year claims are processed.
2. Dependent Care FSA (DCFSA) Claims. Eligible 2024 DCFSA expenses must have been incurred between January 1,2024 and March 15, 2025. All 2024 dependent care claims must be submitted by April 30,2025 in order to receive reimbursement.
Some Helpful Tips for Filing Claims
Employees enrolled in FSAFEDs are advised to do the following for filing 2024 claims before the April 30,2025 claims deadline:
• Check for missing claims. Employees should review their online account (https://www.fsafeds.com) and compare claim payments with their 2024 receipts.
• Use Paperless Reimbursement for HCFSA/LEXHCFSA. Employees should make sure eligible expenses are selected and scheduled for payment.
Suggestions for Employees Enrolled in 2025 FSAFEDs and Who Will be Leaving Federal Service During 2025
Employees who enrolled in the FSAFEDS program for 2025 for either or both the HCFSA/LEXHCFSA and DCFSA and who will be leaving federal service during 2025 either because of early retirement or forced resignation/firing are advised to use all of the FSAFEDs funds before leaving federal service. If they do not use up their funds in their accounts by the day they retire or leave federal service, any unused funds will be forfeited.
Both the HCFSA/LEXHCFSA and DCFSA are funded from an employee’s bi-weekly gross salary. For the HCFSA/LEXHCFSA, an employee can request from the FSAFEDs administrator(HealthEquity, Inc.) an advancement of funds for medical, dental or vision expenses with proper documentation, even though the amount requested has not been totally deducted from the employee’s salary. The following example illustrates:
Example 1. Karen enrolled in the HCFSA for 2025. During the open season in November 2024, she elected to set aside from her 2025 gross salary a total of $3,200. During 2025 (in which there are 26 pay dates) $3,200/26, or $123.08 is being deducted from Karen’s gross salary. As of March 15, 2025, Karen had a total of $615.40 (five pay dates) set aside and put into her HCFSA. Karen also decided to get braces. The cost for braces is $3,200. Karen can request that she receive the $3,200 from HealthEquity, Inc. in order to pay her orthodontist. This can be done even though there is only $615.40 in Karen’s HCFSA. HealthEquity, Inc. will be reimbursed for the remainder ($3,200 less $615.40, or $2,584.60) as Karen continues to work throughout the rest of 2025.
The DCFSA is different. An employee enrolled in the DCFSA has to pay the amount incurred for qualified child or adult dependent care and then submit a formal receipt to HealthEquity, Inc. in order to be reimbursed. The following example illustrates:
Example 2. Sandra enrolled in the DCFSA for 2025. During the open season in November 2024, she elected to set aside from 2025 gross salary the maximum $5,000 for her three dependent children who require before and after-school care and attend summer day camp. Starting with the first pay date in January 2025, Sandra has $5,000/26, 0r $192.31 set aside from her bi-weekly gross salary to reimburse Sandra for her children’s before- and after-school care. The weekly cost for that care is $225. Sandra has to work two pay periods in order to accumulate at least $225 to be reimbursed for her children’s before-and after-school care. Sandra has to present to HealthEquity, Inc. a formal receipt from the daycare center showing what she paid for the qualified daycare in order to get reimbursed.
Employees who will be leaving or retiring from federal service sometime during 2025 and who own FSAs are advised to use up their allotted FSAFEDs funds before they retire. They should not leave any unused funds in their FSAFEDs accounts as of their official departure or retirement date. Those unused funds will be forfeited and kept by HealthEquity, Inc..
Edward A. Zurndorfer is a CERTIFIED FINANCIAL PLANNER®, Chartered Life Underwriter, Chartered Financial Consultant, Registered Health Underwriter and Enrolled Agent in Silver Spring, MD. Tax planning, Federal employee benefits, retirement and insurance consulting services offered through EZ Accounting and Financial Services, located at 833 Bromley Street Suite A, Silver Spring, MD 20902-3019