Spending Accounts

We offer the Health Care and Dependent Care Flexible Spending Accounts (FSAs) to employees that are enrolled in the Core or Premium medical plans. These FSAs, which are administered by Your Spending Account (YSA), are financial accounts that allow you to set aside money on a before-tax basis to pay eligible health care or dependent day care expenses throughout the plan year.

Note: Employees enrolled in the Investor Plan (HSA) are not eligible to participate in a Health Care FSA.

Flexible Spending Account Comparison Overview

ANNUAL MAXIMUM CONTRIBUTION* EXAMPLES OF COVERED EXPENSES
Health Care Flexible Spending Account $2,650 Copays, coinsurance and deductible, orthodontia, etc.
Dependent Care Flexible Spending Account $5,000 ($2,500 if married and filing separate tax returns) Day care, nursery school, elder care expenses, etc.

*For 2019, the annual minimum election for each FSA is $50.

  • Health Care FSA

    The Health Care FSA is used to pay eligible health care expenses for you and your dependents. These include, but are not limited to, office visit copays, coinsurance and contact lenses. For a list of eligible health care expenses, refer to IRS Publication 502.

  • Saving Money with a Health Care FSA

    Here’s an example of how you can save money by contributing to the Health Care FSA.

    Without FSA
    With FSA
    Annual gross wages
    $75,000
    $75,000
    FSA for health care expenses
    $0
    -$2,500
    Taxable pay
    $75,000
    $72,500
    Less hypothetical taxes at 30%
    -$22,500
    -$21,750
    Health care expenses without FSA
    -$2,500
    $0
    Take-home pay (net of health care expense)
    $50,000
    $50,750
    Annual difference in take-home pay
    $750
  • Dependent Care FSA

    The Dependent Care FSA is used to pay eligible dependent day care expenses for you and your spouse. These include, but are not limited to, preschool, after school day care and nanny expenses. For a list of eligible dependent day care expenses, refer to IRS Publication 503.

  • Who Qualifies for Dependent Care Expenses

    You may submit eligible dependent day care expenses for the following qualified individuals:

    • A dependent child under age 13.
    • Your spouse who is physically or mentally unable to care for him/herself and who lives with you for more than half the year.
    • A person who is physically or mentally unable to care for him/herself and who lives with you for more than half the year, and either:
      • Was your dependent, or
      • Would have been your dependent except that:
        • He or she receives gross income in excess of the federal exemption amount, or
        • He or she files a joint return, or
        • You (or your spouse, if filing jointly) can be claimed as a dependent or someone else’s return.

    For more information, refer to IRS Publication 503.

  • Saving Money with a Dependent Care FSA

    Here’s an example of how you can save money by contributing to the Dependent Care FSA.

    Without FSA
    With FSA
    Annual gross wages
    $75,000
    $75,000
    FSA for dependent care expenses
    $0
    -$5,000
    Taxable pay
    $75,000
    $70,000
    Less hypothetical taxes at 30%
    -$22,500
    -$21,000
    Dependent care expenses without FSA
    -$5,000
    $0
    Take-home pay (net of dependent care expenses)
    $47,500
    $49,000
    Annual difference in take-home pay
    $1,500
  • How to Manage My Account

    Use your Apple or Android device to stay up-to-date and take action within your Health Care or Dependent Care Spending Account.

    Download the Your Spending Account (YSA) Reimburse Me mobile app for free from the Apple or Google app store.

    The Reimburse Me app lets you:

    • Immediately access account information, such as available balance.
    • Submit completely paperless health care claims for reimbursement.
    • Submit paperless dependent care claims for reimbursement using e-signature, a feature that allows dependent care providers to certify a claim by signing directly on a smartphone.
    • Electronically submit photos of claim receipts.
    • Get alerts about actions to take to complete the submission process.

    Note: Domestic partners and their dependents’ expenses generally are not eligible for reimbursement due to federal regulations, unless you can claim the domestic partner and/or their dependents as qualified federal income tax dependents.

  • Does the money roll over each year?

    These plans are subject to the IRS “use-it-or-lose-it” rule, which means that unused funds at the end of the plan year are forfeited. You will forfeit any unspent money remaining in an FSA at the end of the calendar year (eligible expenses must be incurred by December 31, 2019) or that is not claimed by the claims filing deadline (April 30, 2020). If you decide to participate in either or both plans, be sure you contribute only the amount you reasonably expect to use during this plan year (through December 31). The IRS requires that the money you contribute to your account(s) in a given calendar year must be used to reimburse eligible expenses for services you receive during that same calendar year.

  • Is my participation automatic?

    No, you need to select a contribution amount and re-enroll each year. If you decide to contribute to a Health Care or Dependent Care FSA, the amount you elect will be prorated and taken from each of your paychecks throughout the year. You cannot change your elections outside of Annual Enrollment unless you experience a qualified life event.

John Hancock and Manulife Financial reserve the right to modify or amend, at any time and in any way whatsoever, the terms of these plans, including eligibility requirements, and to terminate the plans completely.