Flexible Spending Accounts (FSAs)
Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars to pay for eligible health and dependent care expenses. Each year, you must elect the annual amount you want to contribute to one or both accounts. Your contributions will be deducted pre-tax from your paycheck which can help reduce your taxable income.
Health Care FSA
The Health Care FSA will reimburse you for eligible health care expenses that you, your spouse, and your children incur during the plan year. When you incur an eligible expense, you can use your Flexible Benefit Administrators (FBA) debit card and/or submit documentation for reimbursement.
Note: If you are enrolled in the HDHP with HSA, you are not eligible to participate in the Health Care FSA.
Dependent Care FSA
The Dependent Care FSA lets you use pre-tax dollars to pay eligible daycare expenses for children age 12 and under, or elder dependents who are unable to care for themselves. Care can be provided through live-in care, babysitters, or licensed daycare centers.
Rules to Keep in Mind
FSAs offer significant tax advantages, but are subject to IRS regulations:
- All expenses for the Health Care and Dependent Care FSAs must be incurred during the plan year: July 1 through June 30.
- The IRS has a strict “Use-It or Lose-It” rule for FSAs. Any remaining funds in the account will be forfeited.
- Once you enroll in the FSA, you can only change your contribution amount if you experience a qualified life event.
- Each account functions separately. You cannot transfer funds from one FSA to another.
See the Benefits Guide or benefit summaries for detailed information.