Flexible Spending Accounts (FSA)

WHAT IS ANĀ FSA?

With an FSA, you elect to have your annual contribution (up to the limit set by the IRS) deducted from your paycheck each pay period, in equal installments throughout the year, until you reach the yearly maximum you have specified. The amount of your pay that goes into an FSA will not count as taxable income, so you will have immediate tax savings. FSA dollars can be used during the plan year to pay for qualified expenses and services.

  • A Healthcare FSA allows reimbursements of qualifying out-of-pocket medical expenses.
  • A Limited Purpose Medical FSA works with a qualified high deductible health plan (HDHP) and Health Savings Account (HSA). A limited FSA only allows reimbursement for vision and dental expenses.
  • A Dependent Care FSA allows reimbursements of dependent care expenses, such as daycare, incurred by eligible dependents.

WITH AN FSA YOU CAN:

An FSA is a great way to pay for expenses with pre-tax dollars.

  • Enjoy significant tax savings with pre-tax deductible contributions and tax-free reimbursements for qualified expenses
  • Quickly and easily access funds using a prepaid benefits card at point of sale, or request to have the funds directly deposited to your bank account via online or mobile app
  • Reduce filing hassles and paperwork by using your prepaid benefits cards
  • Enjoy secure access to accounts using a convenient Consumer Portable available 24/7/365
  • Manage your FSA “on the go” with an easy-to-use mobile app
  • File claims easily online (when required) and let the system determine approval based on eligibility and availability of funds
  • Stay up to date on balances and action required with automated email alert and convenient portal and mobile home page messages

IS AN FSA RIGHT FOR ME?

An FSA is a great way to pay for expenses with pre-tax dollars. A Healthcare FSA could save you money if you or your dependents:

  • Have out-of-pocket expenses like co-pays, coinsurance, or deductibles for health, prescription, dental or vison plans
  • Have a health condition that requires the purchase of prescription medications on an ongoing basis
  • Wear glasses or contact lenses or are planning LASIK surgery
  • Need orthodontia care, such as braces, or have dental expenses not covered by your insurance

A Dependent Care FSA provides tax-free reimbursement of out-of-pocket expenses related to dependent care. This benefit may make sense if you (and your spouse, if married) are working or in school, and:

  • Your dependent children under age 13 attend daycare, after-school care or summer day camp
  • You provide care for a person of any age whom you claim as a dependent on your federal income tax return and who is mentally or physically incapable of caring for himself or herself
September 29th, 2017 by LD&B Benefits Administrators