Flexible Spending Account

A Flexible Spending Account (FSA) allows you to contribute into an account pretax earnings from your paycheck for reimbursement of expenses you regularly pay for, such as health care and day care. When you use tax-free dollars to pay for certain expenses, such as health and other qualified insurance premiums, prescription drugs, eye-glasses and day care expenses, you realize an increase in your spending power through tax savings.

There are two different parts to the Flexible Spending Accounts in which you can enroll:

1. Healthcare FSA – If you are a full-time Heartland Center for Behavioral Change employee, you may save additional taxes by redirecting, or “banking” a portion of your salary in a TAX FREE account. The account may be used as needed for out-of-pocket qualified medical expenses incurred by you, your spouse, or your dependents.
• You may set aside a maximum of $3,400 in this account in 2026.
• Redirected salary will not appear on your W-2 and will be exempt from federal, state and local taxes. Only qualified expenses NOT reimbursed by insurance can be paid from this account.

2. Dependent Care – Employees may also be eligible to save taxes on dependent care expenses. A portion of your salary may be redirected, or “banked” in a TAX FREE account, and used to reimburse expenses necessary for you and your spouse (if married) to be gainfully employed. You may set aside a maximum of $7,500 (married, filing jointly) in this account in the 2026 plan year.
Eligible expenses include:
• Expenses paid to a dependent care center or care provider for care of dependents under age 13.
• Expenses paid for care of an older dependent who is physically or mentally incapable of self-care.

Important Notes Regarding the Flexible Spending Account Plan:
If you have elected to have money set aside in this account before taxes are calculated, you may not change your plan elections until the end of the plan year, December 31, 2025, unless there is a significant change in your family status (marriage, divorce, death of spouse, birth of child, termination of spouse’s employment, or a significant change in your spouse’s health coverage). If a change in status occurs you may make changes consistent with the qualifying event.

Participants may pay for covered expenses using The Navia Benefits Card. If other means of payments are used, a Claim Form must be submitted along with copies of receipts.

Plan expenses carefully. The Carry Over provision is still in place for the Health Reimbursement Savings Plan. Rather than losing unused money at the end of the year (December 31, 2025), the IRS is allowing unused money – up to $660 – to be carried over to the new plan year to be used throughout the entire year (from January 1 through December 31). The carry over amount – up to $660 – is not subject to the use-it-or-lose-it rules and will simply be added to your new plan year elections.

You must request reimbursement of expenses incurred during the plan year within 60 days of your termination date. The IRS requires that any unused funds be forfeited.