Health Savings and Flexible Spending Accounts

Health Savings Account (HSA) & Flexible Spending Account (FSA)

The Santa Rosa County School Board offers employees the opportunity to enroll in three tax advantaged accounts:

  • Health Savings Account (HSA)

  • Flexible Spending Account (FSA)

    • Health Care FSA
    • Dependent Care FSA
    • Limited Purpose

While the tax deferred benefits of both plans are similar, there are several differences in the two.  The most important difference is that the balance in your HSA can roll over from year to year and continue to grow tax deferred.  For 2025 DOT modified the FSA to allow for a carryover of funds (up to $660) from one plan year to the next.  The IRS sets the guidelines for both types of accounts.

IRS guidelines prohibit employees from enrolling in both an HSA and a Health Care FSA.  However, employees with an HSA are eligible to enroll in a Dependent Care FSA.

More detailed information is available on Health Savings Accounts and Flexible Spending Accounts.

Health Savings Account (HSA) Information

If you participate in the School Board’s FL Blue HDHP/HSA Plan 5192/5193 you can set aside money in a health savings account (HSA) before taxes are deducted to pay for eligible medical, dental, and vision expenses.

Advantages of an HSA include the following:

•Unused money is not forfeited at the end of the year and is carried forward.

•The account is yours to keep. You can take it with you if you change jobs or retire.

Employees enrolled in the FL Blue HDHP/HSA Plan 5192/5193 will receive a monthly contribution from the School Board deposited directly into their HSA account not to exceed:

• $480 for employee only coverage annually ($40.00  paid monthly based on enrollment)

• $1,020 for all family tiers annually ($85.00  paid monthly based on enrollment)

The School Board’s HSA contribution is paid monthly based on tier enrollment. Employees enrolled in the FL Blue HDHP/HSA Plan 5192/5193, who do not meet the HSA eligibility guidelines set by the IRS, will receive an equivalent reduction of medical premium.

For 2025, the maximum amount that can be contributed to an HSA is $4,300 for individual coverage and $8,550 for family coverage. The maximum amount includes the School Board’s contribution. If you reach age 55 or older before the end of the year, you may make additional “catch-up” contributions not to exceed $1,000. The School Board contribution and your monthly deduction may not exceed the maximum limits listed above. You may change your HSA deduction twice per year without a qualifying reason.

The Santa Rosa County Federal Credit Union is the custodian of the HSA accounts. If you do not currently have a savings account with the Credit Union, you will be required to open a savings account with a $25 minimum deposit.

Flexible Spending Account (FSA) Information

Santa Rosa County District Schools provides you the opportunity to pay for out-of-pocket medical, dental, vision and dependent care expenses with pre-tax dollars through flexible spending accounts (FSAs). Our Flexible Spending Account is administered by American Benefit Administrators (ABA).

How It Works

If you participate, you will elect to have a specified amount of pre-taxed money deducted from your paycheck each pay period. These dollars are set aside in a flexible spending account and subtracted from your gross earnings before taxes. If you enroll for the first time, you will receive a flexible spending account debit card. The card can be used to access the available funds in your FSA at the time of purchase rather than paying for qualified expenses out of pocket and waiting to be reimbursed. If you prefer not to use the debit card, you may continue to submit receipts for qualified expenses and be reimbursed from your account. By contributing pre-tax dollars to a FSA you lower your taxable income, pay less in taxes and increase your spendable income!

How Much Can I Contribute?

For 2025, the maximum our plan allows you to contribute to a Medical Flexible Spending Account is $3,300 annually. The Dependent Care Flexible Spending Account is a maximum up to $5,000 for a married couple filing jointly, $2,500 for a single parent, $2,500 for a married person filing separately.

Medical Flexible Spending Account

A Medical FSA may be used to pay healthcare expenses not covered under any other plan. Qualified expenses may include: Deductibles, coinsurance, prescription drugs, vision and dental care. Please refer to IRS Publication 502 at www.irs.gov for the complete list of deductible medical expenses that are eligible for reimbursement. Please note: Premiums for health coverage are not eligible for reimbursement.

Limited Purpose Flexible Spending Account

A Limited Purpose Flexible Spending Account (FSA) allows you to set aside pre-tax dollars for dental and vision expenses for you and your dependents, even if they are not covered under your primary health plan. You are eligible to open a Limited Purpose FSA if you are enrolled in a health savings account (HSA).

Dependent Care Eligible Expenses

A Dependent Care FSA is used to help pay for nursery school or daycare for young children, disabled older children, a spouse, an elderly parent or a disabled parent who lives with you full-time. Services must be provided while you and your spouse are working, engaged in a full-time search for employment, or a full-time student. Eligible daycare expenses are designated by the IRS in Publication 503 which you can access online at www.irs.gov.

Carryover Provision

The Medical FSA “Use It or Lose It” provision does allow a carryover of FSA funds (up to $660 for 2025) from one plan year to the next. As a result of adding the carryover provision to the medical FSA, the grace period provision will only be an option for the dependent care FSA.

Can I make changes to my FSA(s)?

Once an election for the FSA(s) has been made, you cannot change the amount you contribute unless you terminate employment or there is an appropriate “change in status” as defined by the IRS.

What happens to the balance in the account(s) at the end of the plan year?

Up to $660 of funds remaining in the medical FSA at the end of the 2025 plan year (December 31) will carryover to the next plan year for any balance $25 or more. Funds remaining in the dependent care FSA and not paid out by the end of the plan’s grace period are forfeited.  The DOT carryover policy change is not applicable to dependent care FSAs.

Note: If you change medical plans from the High Deductible Health Plan with HSA to one of the PPO plans you may continue to spend your HSA funds until they are exhausted.  If enrolled in the PPO plan you may elect to contribute to a Flexible Spending Account (FSA) and if so, you may utilize both accounts, but you may want to consider spending the FSA funds first since there is a limit on funds that can roll from year to year.  If you have questions about this reach out to the Risk Management Department.