Understand more about Flex Spending Accounts

Health Care Flexible Spending Account (FSA): Allows you to use pre-tax dollars to pay for eligible medical, prescription drug, dental and vision care expenses for you and your tax-code dependents.

Note: If you or your spouse participate in a Health Savings Account (HSA), you cannot contribute to a Health Care FSA

  • By the numbers: The contribution maximum for 2025 is $3,300.
  • Your 2025 annual Health Care FSA must be elected during open enrollment and changes can only be made if you experience a qualifying life event.  This election is for expenses incurred 1/1/25 – 3/15/26 and submitted to P&A Group by 4/30/2026.
  • Reminder for those enrolled in the current 2024 plan year: the Health Care FSA follows the “use it or lose it” rule. Expenses for the 2024 plan year must be incurred between 1/1/2024 – 3/15/2025 and submitted to P&A Group by 4/30/2025. Any unused funds remaining in your account after 4/30/2025 will be forfeited!

Dependent Care Flexible Spending Account: Used to pay for expenses associated with the care of children under age 13 in order for you and your spouse to work full-time.

  • By the numbers: The contribution maximum for 2025 is $5,000.
  • Employees can make changes to dependent care elections at any point throughout the year if there is a change in childcare status, i.e., the cost of childcare begins/ends/changes.
  • Reminder for those enrolled in the current 2024 plan year: the Dependent Care FSA follows the “use it or lose it” rule. Expenses must be incurred between 1/1/2024 – 12/31/2024 and submitted to P&A Group by 4/30/2025. Any unused funds remaining in your account after 4/30/2025 will be forfeited!

Health Savings Account (HSA): For those enrolled in a qualified High Deductible Health Plan (both of Richey May’s HDHPs are eligible), a Health Savings Account (HSA) is an individual savings account used to save money on a tax-advantaged basis for eligible health, prescription drug, dental and vision care expenses for you and your tax-code dependents. 

Note: Make sure your spouse is not enrolled in their employer’s Health Care FSA. The IRS does not allow contributions to both in a taxable household.

  • By the numbers:
  • The IRS has updated the 2025 HSA contribution limits as noted below:
    • Individual coverage: $4,300 annually
    • Family coverage: $8,550 annually
  • Richey May contributes to your HSA as noted below (which will count towards the 2025 maximum):
    • Individual: $1,000 annually
    • Family: $2,000 annually👉 If you currently have a Health Care FSA, you must spend down your 2024 balance by 12/31/24 if you would like to open an HSA effective 1/1/25.  If you do not spend down your balance, you cannot open your HSA until April 1, 2025.
  • Employees may update Health Savings Account contributions at any time during the year by contacting Human Resources.