You can use a flexible spending account to set aside pre-tax dollars from your paycheck to pay for qualified medical or dependent care expenses you would normally pay for out of your pocket with after-tax dollars. Nidec offers a Healthcare FSA and Dependent Care FSA.

Healthcare FSA

The healthcare FSA helps you pay for certain IRS eligible expenses with pre-tax dollars. The 2024 maximum contribution is $3,200. Funds you elect to contribute to the healthcare FSA are available in full on the first day of the plan year. For example, if you elect to contribute $1,000, the full election is available to you on day one. You’ll continue to pay for the election pre-tax from your paycheck throughout the plan year.

Dependent Care FSA

The dependent care FSA lets you set aside pre-tax dollars to use toward qualified dependent care. The maximum amount you may contribute to the dependent care FSA is $5,000 (or $2,500 if married and filing separately) per calendar year. Funds you contribute to the dependent care FSA are available as you accrue them during the plan year.

Use It or Lose It

The Healthcare FSA has a “use it or lose it” rule. You need to use up your Healthcare FSA funds by the grace period deadline of March 15, 2024. The claim submission deadline for run out is April 15, 2024 for expenses incurred.

• You can use your FSA debit card, or
• You can pay out-of-pocket and complete the reimbursement form for reimbursement