Flexible Spending Accounts (FSAs) is offered to employees working a minimum of 30 hours a week and your dependents 1st of the month following 30 days of employment and allows you to set aside money on a pre-tax basis for certain medical and dependent/child care expenses. With a Flexible Spending Account, you can reduce your taxes while paying for necessary services or expenses. The four types of accounts available are Medical Reimbursement, Dependent Care Reimbursement, Transit Reimbursement, and Parking Reimbursement.
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Contribution limits
A Health Care FSA allows you to save money on a before-tax basis for eligible health care expenses.
2025 limits: $3,300/year maximum
2026 limits: $3,400/year maximum
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Claim deadline
You have a 90-day runout to submit claims in the new calendar year for the previous year (you have until March 31, 2026 to submit claims for January 1, 2025 - December 31, 2025).
If you terminate FSA mid-year while employed at Avalon, you will not be eligible for carryover.
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Unused funds carry over?
Your FSA allows you to carry over unused funds into the following year as long as you are an active Avalon employee. The IRS updates FSA rollover limits every year. Any unused funds in excess of the rollover limit will be forfeited.
You can carry over up to $660 from plan year 2025 into plan year 2026.
You can carry over up to $680 from plan year 2026 into plan year 2027.
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What expenses are eligible?
Generally, eligible expenses include medical, prescription drug, dental and vision deductibles, copays and your portion of coinsurance. A complete list can be found at www.irs.gov, Publication 502.
Eligible expenses include copays, coinsurance, deductibles, qualified dental expenses, over-the-counter medications without a prescription, menstrual care products, diabetic supplies, eye exams and eyeglasses, first aid supplies, insulin, laser eye surgery, orthodontia, wheelchairs, walker and canes.
Eligible expenses are generally medical expenses that can be deducted on a federal income tax return, and can be for you, your spouse, or your dependents.
See www.irs.gov, Publication 502
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Can I invest the money in my account?
No.
Health Care FSA Plan
Provider: Trustmark
Phone: 877-267-3359
https://web9.trustmarkcompanies.com/apps/um/login/hb_login.jsp
Please note the following:
* You have 90-day runout to submit claims if you were terminated from Avalon/plan
* You have 90-day runout to submit claims in the new calendar year for the previous year
* If you terminate FSA mid-year while employed at Avalon, you will not be eligible for carryover