Flexible Spending Accounts

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 an account. Your contributions will be deducted pre-tax from your paycheck in equal installments throughout the year which can help reduce your taxable income.

Choose from the following options:

Medical FSA

The Medical FSA will reimburse you for eligible medical, dental, and vision expenses that you, your spouse, and your children incur during the plan year. When you incur an eligible expense, you can use your debit card and/or submit documentation for reimbursement.

Note: if you are enrolled in an HSA, you are not eligible to participate in the Medical FSA.

Limited Purpose FSA

The Limited Purpose FSA is available to HSA account holders only to set aside pre-tax funds for eligible dental and vision expenses for you, your spouse, and your children. You will receive one debit card to use for your HSA and Limited Purpose FSA.

Note: if you are enrolled in an HSA, you are not eligible to participate in the Medical FSA.

Dependent Care FSA

The Dependent Care FSA lets you use pre-tax dollars to pay eligible daycare expenses for children up to age 13, or dependents of any age who are unable to care for themselves. To be eligible, you or your spouse must work, be looking for work, or be full-time students. Care can be provided through live-in care, babysitters, or licensed daycare centers.

Note: if you are enrolled in an HSA, you are not eligible to participate in the Medical FSA.

Important Rules to Keep in Mind

FSAs offer significant tax advantages, but are subject to IRS regulations:

- All expenses for the FSAs must be incurred during the plan year: January 1 through December 31.
- You may roll over up to $610 from the 2023 plan year into 2024.
- The IRS has a strict “Use-It or Lose-It” rule for FSAs. Any remaining funds will be forfeited.
- Once you enroll in the FSA, you can only change your contribution amount if you experience a qualifying life event.
- Each account functions separately. You cannot transfer funds from one FSA to another.
- IRS regulations do not allow domestic partner claims to be submitted for reimbursement unless they qualify as a tax dependent under Code Section 152.