You can save in taxes on the contribution amount you set for the year.

Flexible Spending Accounts

  • Use a Health Care Spending Account to reimburse eligible medical, prescription drug, dental and vision expenses for you and your family.

  • Use a Dependent Care Spending Account to reimburse eligible child-care and other dependent-care expenses.

  • Use the FSA Tax Savings Calculator in the "Members" section of the BenefitWallet website to see how much you can save by using a flexible spending account.

Due to Health Care Reform legislation, the contribution limit for HCSA remains at $2,750 in 2022.

Flexible Spending Accounts (FSAs), are a valuable consumer tool that help you save money on taxes. Read on to learn more, and consider enrolling in one or both accounts at the time of enrollment.

Please Note: You do not have to enroll in a medical, dental or vision plan to participate in an FSA.

There are two types of accounts:

Health Care Spending Account

HCSA helps you save money on your and your dependent's eligible out-of-pocket health care expenses. By using a HCSA, you pay for these expenses with pre-tax dollars. You save a percentage of each dollar you spend on eligible medical, prescription, dental and vision services that are not fully covered or are ineligible for payment under your health care plan. Examples of eligible expenses include:

  • Amounts paid for deductible and coinsurance
  • Prescription eyeglasses
  • Medical supplies (band-aids, thermometers, etc.)

Dependent Care Spending Account

DCSA helps pay child care expenses for a child under the age of 13 who is claimed as a dependent for tax purposes, or for the care of a disabled spouse or dependent of any age. Services must be needed because both you and your spouse work or your spouse is a full-time student. Examples of eligible expenses include:

  • Nursery school tuition
  • Before and after school care programs
  • Summer day camps
Questions? Call BenefitWallet customer service at 1-855-800-1602 with questions about eligible HCSA or DCSA expenses. You also may visit the BenefitWallet website to view a list of eligible expenses, Frequently Asked Questions, and to use other convenient online services and tools.

Deciding how much to contribute

For your Dependent Care Spending Account, you may contribute between $100 and $5,000 for the year through weekly pre-tax payroll deductions (the limit for HCSA remains at $2,750 in 2022), then use the money in your account to reimburse yourself for eligible expenses. Because you cannot change your contribution amount during the plan year (unless you experience a qualifying life event), how much you choose to contribute is a very important decision. Consider using the FSA Tax Savings Calculator in the "Members" section of the BenefitWallet website to help you estimate anticipated eligible expenses for the coming year and set the most accurate contribution amount possible.

It is important to note that under IRS rules, you must incur expenses toward your spending account balance by Dec. 31 of the plan year for the DCSA and by Mar. 15, of the following plan year for the HCSA or you forfeit any money remaining after eligible claims are reimbursed. In other words, you must use it or lose it.

Contributions to and reimbursements from your Flexible Spending Account are exempt from federal income taxes, Social Security (FICA) taxes and, in most cases, state income taxes. Actual savings depends on variables such as your tax bracket. For example, a 15% tax bracket can save up to 22.65% and a 27% tax bracket can save up to 34.65%.

Important: Your Flexible Spending Account elections do not roll over from year to year. You must actively enroll each year you wish to participate.

For more information

Refer to your enrollment materials and Summary Plan Descriptions for detailed information about Flexible Spending Accounts. Summary Plan Descriptions can be found in the Other Resources > Documents & Forms area of your Service Center/enrollment website.

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