The Health Care Flexible Spending Account (FSA), administered by Optum Financial, allows you to set aside up to $2,750 per year to pay expenses not covered by other benefit programs. You don’t pay any federal or state income taxes on FSA contributions, so your money goes further.
CYC Is Now Optum Financial
The name has changed, but your benefits remain the same.
What You Need to Know
When you open an FSA, you choose your contribution total for the year, up to $2,750. You’ll want to estimate your expenses carefully, because you can carry over only up to $550 from one year to the next. This year only (during the pandemic), the rules were relaxed, so any unused FSA balance in 2021 will carry over to 2022.
When you enroll in the FSA with an annual election of $100 or more, you’ll receive a debit card from Optum Financial, the FSA administrator. You can use it to pay eligible health care expenses. When you use your FSA debit card, your eligible expenses are automatically deducted from your account.
New cards are issued only if your existing card is expiring or if you are newly enrolling.
If you pay your eligible health expenses out of pocket, you can be reimbursed from your FSA by filing a claim through Optum Financial.
Unlimited Carryover to 2022
In response to COVID-19, the IRS relaxed some rules for FSAs. Any unused balance in your FSA from 2021 will automatically carry over to 2022.
What You Need to Do
- Elect your FSA contribution during Open Enrollment. You must make an election every year, because your contribution amount does not roll over from year to year.
- Plan carefully. You must incur eligible expenses between January 1 and December 31. Usually, you’ll forfeit any balance over $550 at the end of the year. This year only, any unused FSA balance in 2021 will automatically carry over to 2022.
- The easiest way to use your FSA is by paying with the payment card you receive from Optum Financial—no paperwork required.
- You may access your account and submit claims using the Optum Financial website or the Optum Financial app.
- Incur eligible expenses from January 1 through December 31, and claim reimbursements by March 31 of the following year.
- Save your receipts. You may be asked to provide copies to confirm your expenses.
- Don’t miss the reimbursement deadline. You have until March 31 of the following year (or up to 90 days from the day you leave Lam—whichever is earlier) to submit eligible expenses for reimbursement.