Many employees save hundreds of tax dollars each year and you can too. Every year employees and their families face out-of-pocket costs for health care and dependent care expenses that are not paid for by insurance. Flexible Spending Plans allow you to set aside pre-tax earnings to help pay for eligible expenses.

The Flexible Spending Account (FSA) is administered through Navia and offers a Health Care FSA and Dependent Care FSA. For more information about the Flexible Spending Plans available to you, please visit the Benefit Summaries section of the website.

Remember, these plans are governed by IRS, and have specific rules about which expenses are considered qualified, when you can make changes to your elections, and the time frames for spending the funds. To see a list of eligible expenses, click here.

Health Care FSA

When you enroll in the Health Care FSA, you can contribute up to $3,300 for qualified health care expenses for yourself and your tax dependents. A list of eligible expenses can be found here. The amount you elect will be deducted out of each paycheck on a pre-tax basis, and you will have access to your full election amount at the start of the plan year. Plan carefully – this is a “use it or lose it” program, and the elections you make at the start of the plan year cannot be changed, unless you experience a Qualifying Event. Only $660 of any unreimbursed funds will roll over to the next plan year.

Dependent Care FSA

If you pay for care for dependent family members so that you can work, you may want to consider enrolling in the Dependent Care FSA.  You can set aside up to $5,000 per household, per year for qualified dependent care expenses (for example childcare or eldercare). Unlike the Health Care FSA where the funds are available upfront, the Dependent Care FSA money can only be spent as it is deposited. If your circumstances change during the year, you can change your election amount.

You may be eligible to take advantage of the federal tax credit for dependent care instead of the Dependent Care FSA. Keep in mind, you cannot use both, so you should consult a tax advisor to determine which option is best for you.