Flexible Spending Accounts
Flexible Spending Accounts (FSAs) provide a tax-advantaged way to pay for eligible health care and dependent care (includes elder care) expenses. FSAs let you save for eligible health and dependent care expenses with dollars that are automatically withheld from your paycheck before taxes. The amount you save depends on your tax bracket.
There are two types Flexible Spending Accounts:
- Healthcare Spending Account
- Dependent Care Spending Account
Each year you choose to participate in one, both, or neither account; you are not automatically re-enrolled. You cannot transfer money between the accounts.
Flexible Spending Account (FSA) Utilization Reminder
As a reminder, the money in your FSA must be used for eligible expenses that are incurred and paid for by the end of the calendar year (December 31st, 2023). You have until March 31st, 2024 to submit your reimbursement requests. After that, any unused funds in your account will be forfeited (known as the IRS “use it or lose it” rule).
For more information on how to manage your FSA account, how to file a claim, and for a list of eligible healthcare and dependent care expenses, please review the tabs below.
Set aside money to help pay eligible expenses not covered by your medical insurance. Your contributions will be deducted from your paycheck on a pre-tax basis in equal amounts throughout the year and put into your account.
There are two types of healthcare FSAs:
- Medical/Health FSA
Use your healthcare FSA with traditional insurance plans to pay for things like coinsurance, prescriptions and medical equipment.
- Limited Purpose/HSA Compatible Health FSA
Use a Limited Purpose/HSA compatible flexible spending account when you have both a high deductible health plan (HDHP) and a health savings account (HSA). This FSA is limited to the payment of dental and vision expenses only.
* You are generally limited to reimbursement for eligible dental and vision expenses if you or your spouse participates in or contributes to a Health Savings Account (HSA) Plan.
Eligible health care expenses include (for a complete list, refer to IRS Publication 502):
- Medical,* dental and vision care not covered by insurance
- Health care plan copayments, deductibles and coinsurance
- Nursing home and in-home medical care
- Over-the-counter drugs if prescribed by a doctor or psychologist/psychiatrist care
- Transportation to and from medical care
- Treatment for severe learning disabilities
With a dependent care flexible spending account, you set aside a portion of your paycheck to use for dependent care for:
Your dependent child(ren) younger than age 13 if they generally spend at least 8 hours/day in your home and you provide more than half of their financial support
Any disabled dependent and/or spouse who cannot care for themselves if they live in your home for more than half the year and you provide more than half of their financial support.
To be eligible for a dependent care flexible spending account, both you and your spouse (if applicable) must work, be seeking work or be full-time students.
Eligible dependent care expenses include:
- Nursery schools, day camps and licensed day care centers (all day tuition costs for kindergarten and higher grades for children age 5 and older are not eligible expenses)
- Day care in your home, except if the provider is the child’s parent, your dependent or your child under age 19
- Household services related to the care of an eligible dependent
You will be required to report the name, address and tax identification number of the care provider on your federal tax return. For a complete list of qualified dependent care expenses, please refer to IRS Publication 503.
1. Go to PlanSource Enrollment System
2. Enter your Username and password
Login: First initial of first name, up to the first six characters of last name, and last four of SSN.
Password: Your personally selected password
3. Click Manage Spending Account
- File a claim online
- Upload receipts and track expenses
- View up-to-the-minute account balances
- View your account activity, claims history and payment(reimbursement) history
- Report a lost/stolen Card and request a new one
- Update your personal profile information
- Change your login ID and/or password
- Download plan information, forms and notifications
2. On the Spending Account Home Page, select “File a Claim” located under the “I want to…” section (located on the left-hand side of the home page).
3. The claim filing wizard will walk you through the FSA Claim request process including entry of information, payee details and uploading a receipt.
4. For submitting more than one claim, click "Add Another", from the Transaction Summary page.
5. When all claims are entered in the Transaction Summary, agree to the terms and conditions click Submit to send the claims for processing.
- You may wish to print the Claim Confirmation Form as a record of your submission.
NOTE: If you see a Receipts Needed link in the Message Center section of your Home Page, click on it. You will be taken to the Claims page where you can review claims that require documentation. You can easily upload the receipts from this page. Simply click to expand the line item to view claim details and the upload receipts link.
Decide how much to contribute each year during Open Enrollment. Contributions are deducted from your paycheck in equal amounts on a pre-tax basis during the calendar year.
|Health Care Spending Account||Limited Use Spending Account||Dependent Care Spending Account|
|Contributions to a Health Savings Account (HSA)||You are not making HSA contributions||You/your spouse contribute to an HSA||N/A|
|Eligible expenses||Out-of-pocket medical, prescription drug, dental and vision expenses||Out-of-pocket dental and vision expenses||Out-of-pocket expenses for dependent care, such as child day care, or eldercare while you are at work|
|FSA contribution permitted||Up to $2,850 per calendar year||Up to $2,850 per calendar year||Up to $5,000 per calendar year ($2,500 if married and filing separate tax return)|
|Access to contributions||As soon as participation begins, you can be reimbursed up to your annual contribution amount, minus any reimbursements you have already received.
This reimbursement is made regardless of the amount currently in your account.
|You can be reimbursed for expenses only up to the amount currently in your account|
When deciding how much to contribute, make sure to estimate dependent care expenses as accurately as you can. The money in your FSA must be used for eligible expenses that are incurred and paid for by the end of the calendar year. You have until March 31 of the following year to submit your reimbursement requests. After that, any unused funds in your account will be forfeited (known as the IRS “use it or lose it” rule).