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 WageWorks:
You can use FSA funds to pay for expenses incurred between Jan. 1, 2018, and March 15, 2019. Learn more about eligible expenses.
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.
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:
Learn more about flexible spending accounts in our Digital Benefits Guide.