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Flexible Spending Account​​​s

​Flexible spending accounts (FSAs) let you set aside pre-tax dollars each pay period to pay for covered expenses. You don't pay federal income tax or Social Security tax on your FSA contributions.

There are three FSAs you can participate in—all administered by Wa​geWorks:

      • The general-purpose healthcare FSA (with the HRA and PPO plans)
      • The limited-purpose healthcare FSA (with the HSA plan)
      • The dependent day care FSA

You can use FSA funds to pay for expenses incurred between Jan. 1, 2018, and March 15, 2019. Learn more​ about eligible expenses.


General-purpose healthcare FSA

      •  If you choose the HRA or PPO plan, you can open a general-purpose healthcare FSA.
      •  You contribute from $100 to $2,600 for 2018.
      •  You can use the account to pay for:
            •  Medical, dental and vision expenses not paid for under the plan, including deductibles, copayments and coinsurance
            • Prescription drugs
            • Over-the-counter drugs prescribed by a physician
            • Medical supplies like bandages and contact lens supplies
            • Products like diabetic supplies, hearing aids and wheelchairs
            • Services like orthodontia and laser eye surgery

Limited-purpose healthcare FSA

      •  If you choose the HSA plan, you can open a limited-purpose health care FSA.
      •  You can contribute from $100 to $2,600 for 2018.
      •  Until you meet your medical plan deductible, you can use your FSA for dental and vision expenses and qualified expenses the medical plan doesn't cover:
            • Over-the-counter drugs prescribed by a physician
            • Medical supplies like bandages and contact lens supplies
            • Products like diabetic supplies, hearing aids and wheelchairs
            • Services like orthodontia and laser eye surgery
      •  After you meet your deductible, you can use FSA funds for all eligible medical and prescription expenses.

Dependent day care FSA

You can open this account to cover daycare expenses for your child, disabled spouse, elderly parent or other dependent who's physically or mentally disabled so you can work, or if you're married, so your spouse can work, look for work or go to school full-time.

      • You can contribute from $100 to $5,000 for 2018 if you're married or a single parent.
      • You can contribute from $100 to $2,500 each if you're married and filing separately.
      • You can use the account to pay for:
            • Day care at home and licensed centers for children up to age 13
            • Day care at home and licensed centers for dependents of any age who are mentally and/or physically disabled
               

Here’s an example of how FSAs work. Kyle spends $5,000 a year to send his daughter Kennedy ​to day care. To cover the cost, he contributes $5,000 to a dependent day care FSA throughout the year. Here's how he saves:

Here’s how it works for Kyle Without the FSA With the FSA
Annual pay$30,000$30,000​
Total annual FSA contribution$0$5,000
Taxable pay$30,000$25,000
Taxes
(Assuming 15% Federal, 7.65% FICA*)
$6,795$5,663
After-tax day care expense$5,000$0
Kyle’s annual pay after taxes and day care expenses$18,205$19,337
Amount saved by using the FSA$0$1,132

 

​​​​​*Employees' share of Social Security and Medicare taxes.

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Digital Benefits Guide

Learn more about flexible spending accounts in our Digital Benefits Guide​.​​


Questions? Ask ALEX!
He can help you choose the right plan for you and your family!​​


The money you contribute to an FSA comes out of your paycheck before taxes. You end up with funds you can use to pay ​for health and dependent care expenses—and pay less in taxes on April 15.