IRC 125 Flexible Spending Accounts (FSA) and Premium Only Deduction

City of Henderson pays 100% for all administrative costs associated with the Flexible Spending Account. The employee pays nothing for this benefit!  This benefit is administered by UMR, Inc., and employees can log on the FSA portal here.  If it is your first time logging in to the FSA portal, click here for the portal user guide.  You will notice that you must first log in to the main UMR portal before clicking on your FSA account and being taken to the FSA portal.

There are two types of Flexible Spending Accounts available to you. A Health Care Reimbursement Plan and Dependent Care Reimbursement Plan.

An Important Note: once you determine what your pre-tax elections will be for the year for Health Care reimbursement and Dependent Care reimbursement, you cannot change those elections unless you have one of the following Qualifying Life Events (QLE) occur:

• Birth
• Death
• Adoption
• Marriage
• Divorce
• Change in employment status of a spouse

Unless you have a qualifying "life status change", you must wait until the next open enrollment period to make changes to your contribution amount. Also, understand that you need to use all the money each year that you set aside. If you do not use all the money by the end of the plan year, the money will be forfeited. So make sure you calculate your expenditures accurately so that you can get the most for your (tax-free) money!

What is a FSA (Flexible Spending Account)?

Flexible spending allows you to pay certain health care and dependent care expenses using pre-tax income. Please refer to the FSA Frequently Asked Questions and the FSA Common Questions on the left for more information.

Important Note: You cannot enroll in a Health Saving Account (HSA) if you are enrolled in a Flexible Spending Account (FSA) or if your spouse is enrolled in a traditional FSA through their employer.

What are the maximum contribution amounts for 2024?

• Dependent Care Account - Maximum annual contribution amount is $5,000.
• Medical Account - The maximum contribution amount for the medical expense account is $3,200.

How do I enroll?

• Visit PeopleSoft - Self Service Open Enrollment tile during the entire month of November to enroll for the following plan year.  Additionally, you may enroll or make changes to your FSA election during a Qualifying Life Event (QLE) as mentioned above.

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