Flexible Spending Accounts (FSAs), administered by Payflex, allow you to set aside pre-tax dollars to pay for eligible health care and dependent care expenses. Each year, you need to determine a pre-tax contribution amount, which will reduce your taxable income.
Health Care FSA – IRS Maximum $2,750/year
The Health Care FSA allows you to pay for eligible health care expenses incurred by you, your spouse/DP, and your children during the plan year. Eligible expenses include health plan copays, coinsurance, deductibles, orthodontia services, glasses, and more.
Note: HSA participants are not eligible to participate in the Health Care FSA.
Dependent Care FSA – IRS Maximum $5,000/year
The Dependent Care FSA lets you use pre-tax dollars to pay daycare expenses for children age 12 and under, or elder dependents who are unable to care for themselves. The care must be necessary for you and your spouse/DP to remain employed.
Eligible expenses include live-in care, licensed daycare centers, preschool, day camps, and more. Unlike the Health Care FSA, you can be reimbursed only up to the amount available in your account.
You may be required to submit receipts and other proof in order to receive reimbursement for expenses you claim under the FSA. Make sure you retain all receipts, Explanation of Benefits (EOBs) and other documentation to ensure that you have the necessary proof to obtain reimbursement from your FSA, or in the event of an IRS audit.