FLEXIBLE SPENDING ACCOUNTS
A Flexible Spending Account also known as FSA, allows you to deduct money from your paycheck on a pretax basis to use for eligible out of pocket expenses. There are currently 3 types of FSA’s.
Health Care FSA
A healthcare FSA is designed to provide payments for eligible medical, dental, hearing, vision and prescription drug expenses. These expenses apply not only to you but to your eligible tax dependents as well.
Dependent Care FSA
Dependent Care FSA’s are accounts used to provide payment for eligible child or adult care expenses such as day care, nursery or pre-school, summer day camp and before and after school care.
Limited Purpose FSA
Limited Purpose FSA accounts may be used to provide payment for eligible vision and dental expenses. These expenses could include prescriptions, regular items purchased over the counter and some health expenses based on your plan. You may only enroll in an LPFSA if you have an HSA or Health Savings Account.
HOW CAN YOU SAVE?
Determine the amount you expect to spend in the upcoming year on eligible expenses.
Set aside the amount you want to contribute or the amount allowable by the plan.
Use your debit card to pay for expenses that you know are eligible. Or conveniently submit a claim to us for your out of pocket expenses.
With FSA’s, the money you set aside is tax-free. This means a saving to you of 30 to 50 cents on every dollar you spend.