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Healthcare FSA

A Healthcare Flexible Spending Account (also known as a flexible spending arrangement) is a special account you put money into that you use to pay for certain out-of-pocket health care costs on a tax-advantaged basis.

You don’t pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside.

Employers may make contributions to your Healthcare FSA, but aren’t required to do so

  • Contributions to a Healthcare FSAs are limited to $2,750 per year per employer. If you’re married, your spouse can put up to $2,750 in an FSA with their employer too.
  • You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse if you’re married, and your dependents.
    • You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums.
    • You can spend FSA funds on prescription medications, as well as over-the-counter medicines with a doctor's prescription. Reimbursements for insulin are allowed without a prescription.
    • FSAs may also be used to cover costs of medical equipment like crutches, supplies like bandages, and diagnostic devices like blood sugar test kits.
  • A limited purpose FSA is designed for employees who also contribute to an HSA. The Limited Purpose FSA is limited to dental and vision plan expenses. Health care expenses are deductible through the HSA for the periods in which an employee contributes to an HSA.

FSA Dependent Care

A Dependent Care FSA (DCFSA) is a pre-tax benefit account used to pay for eligible dependent care services such as preschool, summer day camp, before or after school programs, and child or adult daycare. It's a smart, simple way to save money while taking care of your loved ones so that you can continue to work.

Dependent Care FSA Eligible Expenses

  • Care for your child who is under age 13
    • Before and after school care.
    • Babysitting and nanny expenses.
    • Day care, nursery school, and preschool.
    • Summer day camp.
  • Care for your spouse or a relative who is physically or mentally incapable of self-care and lives in your home