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Flexible Spending Accounts
Flexible Spending Accounts (FSAs) provide a tax-advantaged way to pay for eligible
health care and dependent care (including elder care) expenses. FSAs let you save
for eligible health and dependent care expenses with dollars that are automatically
withheld from your paycheck before taxes. The amount you save depends on your
tax bracket.
Using your FSA account(s)
1. Decide how much to contribute each year during Open Enrollment. Contributions
are deducted from your paycheck in equal amounts on a pre-tax basis during the
calendar year.
2. When you have eligible expenses, you can use the VISA FSA debit card sent to
you when you enroll. Or, you can submit claims receipts to Discovery Benefits for
reimbursement.
You must file claims for 2017 expenses by March 31, 2018 or the
unused amount is forfeited
.
Note that if you or your spouse contribute to an HSA, you may only enroll in a
Limited Use Spending Account with contributions only used for dental and vision
expenses. This limitation is required by the IRS to prevent duplication of tax benefits.
There are two Flexible Spending
Accounts:
• Health Care Spending Account
• Dependent Care Spending Account
Each year you choose to participate
in one, both, or neither account; you
are not automatically re-enrolled.
You cannot transfer money between
the accounts.
Health Care
Spending Account
Limited Use
Spending Account
Dependent Care
Spending Account
Contributions to a Health
Savings Account (HSA)
You are not making HSA
contributions
You/your spouse contribute
to an HSA
n/a
Eligible Expenses
Out-of-pocket medical,
prescription drug, dental
and vision expenses
Out-of-pocket dental
and vision expenses
Out-of-pocket expenses for
dependent care, such as child
day care, or eldercare while
you are at work
FSA Contribution Maximum
$2,500 per year
$2,500 per year
$5,000 per year
($2,500 if married and filing
separate tax return)
Access to Contributions
As soon as participation begins, you can be reimbursed up to your
annual contribution amount, minus any reimbursements you have
already received.
This reimbursement is made regardless of the amount currently in
your account.
You can be reimbursed for
expenses only up to the amount
currently in your account.
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