Engage PEO - Medical/Dental/Vision

Flexible Spending Accounts (FSAs) ▼

Administered by Inspira Financial

Flexible Spending Accounts (FSAs) – Decide how much you want to contribute, get reimbursed for eligible expenses, and save money by eliminating federal taxes on your contribution amount. Four different FSA account types are available:

Health Care – for eligible medical, dental and vision expenses.
Limited Purpose - for dental and vision only.
Dependent Care – for eligible, non-health care related dependent care expenses.
Commuter Benefits – if you commute to work, you can take advantage of pre-tax savings by contributing up to a certain amount to pay for eligible parking and transit expenses.

Important FSA Rules

Because FSAs can give you a significant tax advantage, they must be administered according to specific IRS rules:

Grace Period

Use prior year’s FSA funds and incur claims through March 15. Must file claims by March 31. Any remaining prior year balance is forfeited.

Run Out Period

When members terminate from a FSA account, they have 90 days to submit claims incurred prior to or on their termination date. Any funds remaining in their account are forfeited after that date. All claim submissions are manual after termination and the debit card will be deactivated.

Dependent Care FSA

Employees can only be reimbursed up to the amount currently available in their account. Requests cannot exceed the funded balance.

If you are new to Engage, review this information to avoid exceeding the annual contribution limit.

The 2027 Health Savings Account (HSA) contribution limits are $4,500 for self-only coverage and $9,000 for family coverage, with an additional $1,000 catch-up contribution allowed for individuals aged 55 or older. [1]

Key 2027 Contribution and Plan Limits

Self-Only HSA Limit: $4,500 total contributions (employee plus employer combined).
Family HSA Limit: $9,000 total contributions (employee plus employer combined).
HSA Catch-Up Contribution: $1,000 for ages 55 and older (unchanged).
HDHP Minimum Deductible: $1,750 for self-only and $3,500 for family plans.
HDHP Maximum Out-of-Pocket: $8,700 for self-only and $17,400 for family plans.
Health FSA Limit: Projected/expected around $3,400 to $3,600 (official IRS figures are finalized in late autumn).

Why Overcontributing is Risky

6% Excise Tax: Excess contributions left in an HSA incur a 6% tax penalty every year until fixed.
FSA Forfeiture or Penalties: General-purpose FSAs usually do not roll over completely (limited to a small carryover or 2.5-month grace period), meaning unspent excess funds can be lost.
Conflicting Coverage: Having a general-purpose health FSA while contributing to an HSA breaks IRS eligibility rule.

Video Links:

Inspira HSA | (844) 729-3539 | Inspira

Aetna ▼

Aetna offers a variety of plan options, including EPO, HMO, PPO, and HDHP designs, giving you access to quality care, virtual health services, prescription coverage, and a nationwide provider network.