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Flexible Spending Accounts (FSA)

Flexible spending accounts (FSA) are among the most significant tax shelters allowed by the IRS. Read on to learn how you can take advantage of substantial tax savings by using spending accounts. The health, dependent care and transit and parking flexible spending accounts are administered by Workterra.

Santa Barbara County Superior Court offers you the opportunity to participate in a Healthcare and /or Dependent Care Flexible Spending Account (FSA).

How your FSA Account Works

Each year during the Open Enrollment period, you decide how much you want to contribute to the Healthcare and Dependent Care Flexible Spending Account. Your 2023 enrollment election does NOT automatically carry over to the 2024 plan year.

Each pay period, the money deducted before taxes is withheld in equal increments from your pay and contributed to your healthcare and / or dependent care spending account(s). You can elect up to $3050 annually for the Health Care FSA. You may contribute up to $5,000 per household for the Dependent Care FSA. Unlike health benefits, FSA contributions are withheld in all 26 pay periods.

NOTE: The 2023 FSA maximum amount may change in October when the IRS announces the maximum limits for 2023.

As a participant of the Health Care FSA plan, you can choose to have an FSA debit card.  This card is linked to your FSA account. When purchasing qualified medical services or products, you simply use your FSA debit card and the transaction is complete. Be sure to keep your receipts since you will need to provide proof of expenses if audited. The dependent care FSA does not allow a debit card for day care expenses.

If you do not use a debit card for your transaction, you can submit your claim and receipts via fax, email or U.S. mail. Upon review and approval of the eligible expenses submitted to FSA, you will be reimbursed for the expense(s).

Be Cautious!!

  • Only qualifying medical expenses incurred during the plan year will be eligible for reimbursement.
  • The FSA plans have an added feature (Grace Period) that allows you to continue to incur new claims up to 3/15/2023, with any remaining funds from your 2022 elected amount. Expenses must be submitted for reimbursement no later than May 30, 2023.
  • You must spend all the money in your accounts or you will lose it. IRS rules do not allow you to carry over an FSA balance from one year to the next, so be sure to estimate your contributions carefully.
  • Once you enroll, you can only change your elected payroll contributions if there is a change in family status, such as: marriage, divorce, death, birth, adoption, or change in employment status.
  • Money cannot be transferred between the Health Care and Dependent Care FSA.
  • If your employment with Santa Barbara County Superior Court terminates, you can only be reimbursed for claims incurred up to your last day of employment.

Note for Over-the-Counter (OTC) Drugs and medicines: Thanks to the Coronavirus Aid Relief and Economic Security (CARES) Act, you can use your FSA or HSA funds to buy over-the-counter medications without a prescription, like Tylenol and other pain relievers, heartburn medications, allergy relief and more, for the first time since 2011. You can also use your funds for feminine care products for the first time.

More on FSA

The employee website www.workterra.lh1ondemand.com now provides you with the option to enter claims online via the consumer portal option or fax to (925) 460-3929.

To Mail:
EBS-Reimbursemnt Accounts
PO Box 850101
Minneapolis, MN 55485-0101

Overnight Mail:
Lockbox Services 850101
EBS-Reimbursement Accounts
1801 Parkview Drive, 1st Floor
Shoreview, MN 55126

Santa Barbara County Superior Court offers you the opportunity to participate in a Parking/Transit Flexible Spending Account (FSA).

How your commuter benefits program works:

Use the money in your Workterra Commuter Program for all of your eligible work-related transit and parking expenses. Work-related transit expenses consist of vouchers, passes, tokens, and fare cards for transportation via bus, commercial vanpool or train. Parking expenses incurred include parking at or near work, parking at or near transportation site and park and ride expenses. Ineligible expenses include (but are not limited to) tolls, car maintenance, carpools and gasoline.

Twice monthly, you set aside some of your pay, before taxes, to use for your eligible transit and/or parking expenses. The maximum IRS allowed amount for 2022 is $270 per month.

You save because the money to fund the program is deducted from your pay before taxes are taken out. Since the money used to fund the program isn’t taxed, you save between 25% and 40% on every purchase. If, for example, you spend $100 a month on your commute, you can save up to $40 a month ($480 a year) with the program.

Using your commuter program is easy:

When you sign up for the program, you determine the amount of parking and/or transit expenses you would like deducted each pay period. As the amount is deducted from your paycheck, the money is put into your account and is available for you to use for eligible expenses.

A Health Saving Account (HSA) is available only to employees who participate in the Blue Shield High Deductible Health Plan (HDHP). A HSA is like a IRA for healthcare. It is a tax-advantaged personal savings or investment account that you can use to save and pay for qualified health expenses, now or in the future. Paired with a qualified high deductible health plan (HDHP), an HSA is a powerful financial tool that empowers you to be more actively involved in your healthcare decisions.

An HSA allows you to:

  • Save toward medical expenses (including dental and vision), up to IRS maximums (see Table 1)
  • Have your contributions deducted on a pre-tax basis
  • Change your contribution amount at any time
  • Roll the funds to the following year (this is not a “use it or lose it” plan)
  • Keep the account; it is portable; it goes with you if you leave employment
  • Use a debit card to pay for qualified medical expenses
  • Use the funds to pay for IRS tax dependents even if they are not enrolled in the HDHP

HSA Contribution
Limits for 2023

  

Annual Single Contribution Maximum

$3,850*

Annual Family Contribution Maximum

$7,750*

Annual Catch-Up Contribution Maximum (for HSA participants that are 55 years or older)

* These amounts are the maximum the IRS allows you to contribute to your HSA. If the Court contributes $900 into this account you have to deduct that amount from this limit As an example $3,850 - $900 =$2,950 would be the annual single contribution maximum you can make on a pre-tax basis. 

Important Information

  • If you have a Healthcare Flex Spending Account (FSA) for 2022, you cannot open an HSA until the available funds in your 2022 FSA Healthcare account has been used, and the balance in your Healthcare FSA account is $0.
  • You cannot have an HSA and be a dependent on another person’s health insurance plan, unless that plan is also a High Deductible Health Plan.
  • The Court will contribute $900 annually over 24 pay periods into your Sterling HSA account.

You must open your HSA with Sterling HSA. If you do not open your account you will not be able to receive any of the Court’s contributions.

Health Savings accounts are administered by Sterling:
http://www.sterlingadministration.com/

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