Flexible Spending Accounts
Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars from your paycheck to pay for eligible out-of-pocket healthcare or daycare expenses. In general, deciding to enroll in a Flexible Spending Account (FSA) can help you save a on taxes. Your contribution is deducted from your paycheck on a pre-tax basis and you can access the funds in your account to pay for eligible expenses.
You can use your Healthcare FSA debit card to pay medical, prescription, dental, and vision expenses at providers that accept it as a form of payment for services. If you do not use your debit card, you'll have 90 days following the end of the plan year to submit receipts for reimbursement for the Health Care account and Dependent Care account. After the processing, you'll receive a reimbursement check by mail.
Expenses for both the Health Care and Dependent Care FSA must be incurred by December 31st. An expense is considered “incurred” when you receive treatment or purchase an item, not when you are billed.
It’s important to know that you must enroll in FSAs each year during Open Enrollment. Your annual election will not carry over from year to year.
Plan
During enrollment, estimate your out-of-pocket health care expenses.
Spend
Pay for your eligible health care expenses – tax-free – using your Health Care FSA debit card or submit a claim for reimbursement.
Save
You can withdraw money from your FSA tax-free, which means you save each time you use it.
Eligible Expenses
Most medical, dental, and vision care expenses, including:
- Copayments
- Coinsurance
- Deductibles
- Eyeglasses and contacts
- Prescriptions
View the full list of eligible expenses.
How It Works
- The maximum contribution is $3,300 per year.
- Funds are deducted throughout the year, but all funds are available on January 1.
- Your FSA elections are effective January 1 through December 31. Claims for reimbursement must be submitted by March 31 of the following year.
- If you are enrolled in the HSA with the Cigna Choice Fund OAP HDHP plan or the Kaiser High Deductible HMO, you are not eligible for the Health Care FSA. Instead, you may enroll in the Dependent Care FSA.
Plan
During enrollment, estimate your out-of-pocket dependent care expenses.
Spend
Pay your provider like you normally do and submit a claim for reimbursement.
Save
The money in your FSA is tax-free, which means you save each time you use it.
Eligible expenses
You can use the Dependent Care FSA for:
- Day care or after school programs for children under age 13 or disabled dependents of any age
- Elder care programs
Some services, such as care provided by your spouse and babysitting expenses when you are not working, are ineligible.
View the full list of eligible expenses.
How it works
- The maximum contribution is $5,000 per year ($2,500 if married and filing separate tax returns).
- Your FSA elections are effective January 1 through December 31. Claims for reimbursement must be submitted by March 31 of the following year.
Plan Carefully!
Unused money remaining in your account(s) will be forfeited. This is known as the “use it or lose it” rule and it is governed by Internal Revenue Service regulations.