Flexible Spending Accounts (FSAs)
Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars for reimbursement of eligible health care and/or dependent care expenses. The Flexible Spending Accounts are administered by Your Spending Account (YSA).
Health Care FSA
The Health Care FSA gives you a valuable tax break by letting you set aside pre-tax dollars for reimbursement of certain health care expenses you or your family might have over the course of a year. Here are some key features of this type of account:
- Money in your account can be used for medical, dental and vision expense
- You may contribute up to the IRS maximum each year. In 2020, the maximum contribution was $2,750
- You can access your full annual election immediately
- At the end of the year, remaining money up to $550 will be rolled over to the following year for you to continue using. If you have a balance above $550, that money will be forfeited, so choose you FSA election amount wisely.
- If you elect a High Deductible Health Plan with HSA, you may not contribute to a Health Care FSA
Dependent Care FSA
Just like the Health Care FSA, the Dependent Care FSA gives you a valuable tax break to help you pay for certain child and adult day care expenses. Here are some key features of this type of account:
- Money in your account for expenses such as before and after school care, expenses for day care, preschool or nursery school, nanny service and summer camp
- You may contribute up to $5,000 each year or $2,500 if you are married and your spouse also participates in this benefit
- You can access funds as they are deposited to your account
Any balances remaining at the end of the year will be forfeited.