Flexible Spending Account (FSA)

  • What's a flexible spending account?

    A flexible spending account (FSA) is a special account offered by your employer. With an FSA, you decide how much money to contribute at the beginning of each plan year. Then use the account to pay for qualified medical or dependent care expenses on a tax-free basis throughout the year.

    Your employer provides and owns your FSA. Only you and your employer can contribute funds, up to the maximum amount allowed by the IRS ($2,650 for 2018). Unlike health savings accounts, FSAs are “use it or lose it” accounts, meaning your employer can keep any money not used by the end of your plan year.

    What are the benefits of an FSA?

    • Funds deposited or used on qualified healthcare expenses are tax-free.
    • Your contributions are automatically withdrawn from each paycheck

    There are 2 types of FSAs

    Healthcare FSA

    A healthcare FSA covers medical, dental, and vision expenses that you would otherwise pay for out of pocket, such as:

    • Health plan deductibles, coinsurance, or copayments
    • Hospital charges and lab fees
    • Prescription drugs

    Your employer may limit the expenses your plan reimburses. Please contact your human resources office for more information.

    Dependent care FSA

    Employers may also offer a dependent care FSA. Funds in this account pay for the costs of child or elderly care. Typical expenses under this account include:

    • Charges for state-licensed daycare
    • Preschool
    • State-licensed elder care (unless it's for medical care)

    Expenses must be for dependents under the age of 13, or those physically or mentally incapable of caring for themselves.

    An FSA is an easy way to pay for healthcare expenses

    There are 2 ways to use your FSA to pay for eligible healthcare expenses:

    1. Use your healthcare payment card to pay for eligible expenses where debit cards are accepted.
    2. Pay with your own money and submit a claim with receipts online for reimbursement.

    Manage your flexible spending account online