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2020 Health Care Spending Accounts

| Joan Morales

Health Care Flexible Spending Account (HCFSA) – If you are enrolled in the Standard, High-Cost Coverage or Out-Of-Area Medical Option, money is set aside on a pre-tax basis to pay for eligible health care expenses.  Contribution limit for 2020 is $2,700.  You have until December 31, 2020, to incur eligible claims. After your first payroll deposit, the full amount of your elected HCFSA amount for the entire year is available for your use, regardless of the actual balance in your account.

Up to $500 remaining in your 2020 HCFSA will be carried over to the 2021 plan year. Any unused amount of more than $500 remaining in your HCFSA at the end of 2020 will be forfeited. 

Healthcare claims are paid from the HCFSA first since it has a “use it or lost it” rule.  When your HCFSA funds run out, your expenses are paid from your Health Reimbursement Account (HRA).  

Health Savings Account (HSA) – This account is available only to employees enrolled in the Core Medical Benefit Option, a qualifying high-deductible health plan.  It is your own account and you can contribute pre-tax dollars. AA will also contribute dollars in the form of reward dollars earned by completing Wellness Program activities. Maximum HSA contributions for employee only is $3,550 and employee + spouse is $7,100 (includes up to $500 Wellness Rewards). If you are age 55 or over, your maximum annual contribution increases by $1,000.

If you decide to switch from the Core plan to the Standard or High-Cost Coverage plan in 2021, the balance in your HSA account can be used for eligible medical expenses, however, no further contributions may be made.

HSA funds can be invested once the account balance is greater than $1000. Feel free to contact for investment recommendations and guidance.

Up to $500 remaining in your 2020 LPFSA will be carried over to the 2021 plan year. Any unused amount of more than $500 remaining in your LPFSA at the end of 2020 will be forfeited. 

You have three options to use the balance in your Spending Accounts:

If you are currently enrolled in a Flexible Spending Account (FSA) or Health Savings Account (HSA), YSA will be replaced by a “Smart-Choice Account” and you will receive a Smart-Choice account debit card this December to replace your YSA debit card.  You will still have time to process your 2019 YSA reimbursements from your account from Jan 1 – 14, 2020.

Additional information about Smart-Choice Account will be provided later this year.

Disclaimer:  This information is based on available JetNet and Benefit Guide sources and is subject to change without notice.  The information published on JetNet overrules the guidance contained in this document. This document is not tax advice. Contact your tax professional to discuss potential tax consequences.

Connect with Joan Morales, Manager of Pilot Services at



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