FSAs include health care flexible spending (HCFSA), dependent care flexible spending (DCFSA), and commuter parking and/or transit accounts. These accounts are IRS-approved plans that allow you to pay for eligible expenses with a portion of your salary that is not taxed. If your employer offers rollover, any unused funds at the end of the plan year, up to $500, can be rolled over into the next year.
An FSA allows you to redirect the money you spend on health care or dependent care into a separate account that is not taxed. Participating in your FSA plan could save you hundreds of dollars each year.
A health care FSA is a prefunded account. You can use the funds in this account to pay for out-of-pocket expenses related to medical, prescription, dental, and vision costs. The entire amount you elect to put in the plan for the year is available on the first day of your eligibility. You can pay for your own out-of-pockets costs, or any of your family members’ costs.
Dependent care costs include day care expenses that allow you and/or your spouse to work, seek work, or attend school full-time. Eligible expenses apply to children under age 13 or other dependents who require care, such as elderly parents. Unlike the health care FSA, the dependent care FSA is NOT pre-funded. Claims are paid after contributions are made into the account.
Eligible expenses include the cost of parking your vehicle near your work or transit location. The account cannot be used to pay for parking expenses related to non-work activities or parking for family members, gas/mileage, or bus passes. The money is available after it has been deducted from your pay.
Eligible expenses include bus passes, van pools, and other mass transit expenses for work-related transportation.
It is a special-purpose debit card that provides instant access to funds in your applicable plans. The card allows you to pay for eligible products and services at the point of sale without submitting a claim form and waiting for reimbursement. See your employer for details and limitations.