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Flexible Spending Accounts

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A Simple Way to Save for the Everyday

Flexible Spending Accounts (FSAs) are offered by your employer to help you pay for qualified medical and dependent care expenses using pre-tax funds. The money you put into an FSA is taken out of your paycheck before taxes. You save by reducing your taxable income and spending those pre-tax dollars for care.

FSA Advantages

FSAs can be used to pay for a wide-variety of expenses. Those expenses depend on which type of FSA you get.

Family

Health Care FSAs

are used to pay for health care expenses for you and your dependents, even if those dependents are not covered by your health plan.  


Those expenses include:

  • Medical deductibles, copays & coinsurance
  • Medication
  • Dental care
  • Orthodontia
  • Eye exams
  • Laser eye surgery
  • Glasses and contact lenses
  • Hearing aids
  • Diabetes supplies

Here is a comprehensive list of qualified expenses .

Toobrush and glasses

Limited Purpose FSAs (LPFSA)

If offered by your employer, these give you the flexibility to use pre-tax funds in a smart way.  If you have a Health Savings Account (HSA), then you can also enroll in a LPFSA.  A limited purpose FSA allows you to contribute additional pre-tax funds to pay dental and vision expenses for the current plan year.  Putting money in an LPFSA allows you to maximize your pre-tax HSA contributions and take advantage of the long-term saving opportunity of an HSA.

Family

Dependent Care FSAs

help you save money for qualifying expenses related to caring for:

Your qualifying child under age 13 who lives with you

Spouses, older children, or relatives who are physically or mentally unable to care for themselves and live with you (at any age)

Use your pre-tax funds to pay for:

  • Before or after school care
  • Custodial care for dependent adults
  • Licensed day care centers
  • Nursery schools or preschools
  • Summer day camp
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How FSAs Works

When you enroll, you decide the amount of money to contribute over the year. The current maximum annual amount that you can contribute is set by the IRS.

FSA Account Types 2018 FSA Contribution Maximum 2019 FSA Contribution Maximum
Health Care $2,650
for individuals or families
$2,700
for individuals or families
Limited Purpose
$2,650
for individuals or families
$2,700
for individuals or families
Dependent Care
$5,000
single or married filing jointly
$2,500
if married filing separately
$5,000
single or married filing jointly
$2,500
if married filing separately

Money in any FSA usually needs to be used in your current plan year or you will lose those funds. Some plans may allow money to carry over or give you extra time to submit expenses. Dependent Care FSAs, for example, do not roll over.  Check with your employer about the details of your FSA.

Pregnant Women

Ask your employer about enrolling in an FSA today!

An FSA is a smart way to save on out-of-pocket costs. You can use an FSA to:

  • Pay for a wide variety qualified medical, dental and vision expenses with a Health Care FSA.
  • Help pay for dependent care, like child and elder daycare, with a Dependent Care FSA.
  • Cover Dental and Vision care expenses with a Limited Purpose FSA. Remember, you can also use them with an HSA to help maximize your pre-tax HSA contributions and take advantage of the long-term saving opportunity of an HSA.

No matter which FSA you choose, you’re contributions reduce your taxable income and can save you money.