E. Flexible Spending Account (FSA)
To participate in the FSA, you are required to enroll EVERY year during Open Enrollment.
Click Here to complete an enrollment form.
A Flexible Spending Account (FSA) is a special account you put money into that you use to pay for certain out-of-pocket health care costs, such as copayments, deductibles, some drugs and some other health care costs, but not insurance premiums.
You do not pay taxes on this money. This means you'll save an amount equal to the taxes you would have paid on the money you set aside.
Under the Health Care FSA plan, you are allowed to carry over of a minimum of $50 to a maximum of $640 per year to use in the following year.
If your spouse's employer also provides an FSA benefit, your spouse can also contribute up to the maximum amount annually into a separate FSA account.
If you are enrolled in a CDHP (high deductible) health plan, you may only enroll in the Limited Health Care FSA. The Limited Health Care FSA can only reimburse for dental, orthodontia, vision and preventative care expenses.
2024 FSA maximum deduction: $3,200/annually
A Dependent Care FSA is a pre-tax benefit account used to pay for eligible dependent care services, such as preschool, summer day camp, before or after school programs, and child or adult daycare.
With a Dependent Care FSA, you use pre-tax dollars to pay qualified out-of-pocket dependent care expenses. The money you contribute to a Dependent Care FSA is not subject to payroll taxes.
Any unused funds that remain in your Dependent Care FSA will be forfeited at the end of the plan year. These funds are subject to the IRS "use-it-or-lose-it" rule and do not rollover to the following year.
2024 FSA maximum deduction: $5,000/annually