Flexible Spending Accounts

Medical Flexible Spending Account (FSA): a tax-advantaged account that allows you to set aside pre-tax money to pay for qualified medical expenses. Funds can be used for expenses like co-pays, prescriptions, and certain medical supplies. The key feature of an FSA is that the money must generally be used within the plan year, or it will be forfeited, unless the employer offers a grace period or carryover option. The maximum contribution amount this year is 3,300.  Funds are available on the coverage effective date.

Dependent Care Flexible Spending Account (FSA): helps families manage the costs associated with caring for dependents while allowing parents or guardians to work. By using pre-tax dollars to pay for qualified expenses, participants can reduce their taxable income, resulting in potential tax savings. The maximum contribution amount this year is 5,000. Funds are only available as they are accrued.