Overview
There are two types of Flexible Spending Accounts:
- Health Care
- Dependent Care
The accounts are separate, but similar in that they allow you to set aside pre-tax dollars to pay eligible health and dependent care expenses that other benefit plans don't cover.
The accounts can help you pay for expenses that are predictable. They may offer savings, but you should plan carefully.
Amounts over $610 left in either account at the end of the plan year (July 1 - June 30) are forfeited due to IRS Regulations.
How the accounts work
- Select the Flexible and/or Dependent Care Accounts during open enrollment.
- Authorize payroll deductions before income and employment taxes are withheld.
- When you have eligible expenses, file your claims for reimbursement from the tax free money you’ve set aside.
Although the two accounts are similar, they are different. Careful planning of the dollar amounts deposited into your accounts is encouraged.
Contribution Amounts
- You may contribute a minimum of $120 per plan year and a maximum $3,050 in a Health Care FSA.
- You may contribute a minimum of $135 per plan year and a maximum of $5,000 in a Dependent Care FSA. Additionally, due to IRS regulations you are limited to $5,000 in a calendar year.
Tax Savings Estimator
Estimate the annual medical expenses and tax savings for you, your spouse and any tax dependents with the ASI Tax Savings Estimator.
Determine how much to put in your account using the FSA Worksheet to plan appropriately.