Flexible Spending Accounts (FSA)
Flexible Spending Accounts (FSAs) allow you to set aside money from your paycheck to pay Health Care and Dependent Care expenses with tax-free dollars. When you contribute to an FSA, your pre-tax contributions reduce your taxable income.
Flexible Spending Accounts (FSAs) allow you to set aside money from your paycheck to pay Health Care and Dependent Care expenses with tax-free dollars. When you contribute to FSAs, your pre-tax contributions reduce your taxable income.
Be sure to estimate carefully as you cannot change your contribution amount during the year unless you have a qualifying life event.
Health Care and Dependent Care FSAs
| ACCOUNT | USED FOR | MAXIMUM ANNUAL CONTRIBUTION |
| Health Care FSA | Medical/Rx, dental and vision expenses, such as deductibles, coinsurance, copays, glasses and contact lenses, orthodontia and other qualified expenses | $3,400 |
| Dependent Care FSA | Dependent care expenses such as day care and after school programs for children under age 13, or elder care expenses, so you and your spouse can work or attend school full time | $7,500, or $3,750 if married and filing separate tax returns |
How the Accounts Work
- You estimate your eligible expenses for the year and decide how much you want to contribute to either or both an FSA Health Care and FSA Dependent Care account.
- The amount you choose will be deducted from each paycheck throughout the year before income taxes and Social Security taxes are calculated.
- As you have eligible expenses, you can be reimbursed from your accounts with tax-free dollars.
- The total amount you choose to contribute to your Health Care FSA is available immediately on the first day of the plan year. You can spend the dollars in your Dependent Care FSA as they are deposited each pay period.
- Health Care and Dependent Care Accounts are separate. The money in one account cannot be used to pay for expenses from the other account.
- If you enroll in the Health Care FSA, you will receive a debit card that you can use to pay for eligible health care expenses at the point of service. Otherwise, you can pay for services and submit a claim for reimbursement or request reimbursement online.
- If you enroll in the Dependent Care FSA, you will pay for services and submit a claim for reimbursement or request reimbursement online at www.BenefitResource.com.
- You cannot change your contribution amount during the year unless you have a qualifying life event.
- With the Health Care FSA, you can rollover up to $680 in unused funds at the end of the year.
- The Dependent Care FSA is a use-it-or-lose-it account. Any unused funds left in your account at the end of the year will be forfeited.
- FSA contributions do not automatically rollover from one year to the next. You must re-enroll each year to participate.
- To enroll in Health or Dependent Care FSA offerings, go to www.myadp.com.
Health & Wellness
Voluntary Benefits