Flexible Spending Account

A Flexible Spending Account (FSA) is an employer owned account that lets you set aside pre-tax dollars (which lowers your taxable income) to pay for eligible out-of-pocket expenses.

There are three types of FSAs:
1. Healthcare FSA – Can be used to pay eligible medical, dental, orthodontia and vision expenses
2. Limited Purpose FSA – Can be used in tandem with an HSA to pay eligible dental, orthodontia and vision expenses
3. Dependent Care – Can be used to pay eligible expenses for childcare, eldercare or care for a disabled dependent

Eligible Expense Examples:
• Coinsurance & copayments
• Contraceptives
• Crutches
• Dental expenses
• Dentures
• Diagnostic expenses
• Eyeglasses, including exam fee
• Handicapped care & support
• Nutrition counseling
• Hearing devices & batteries
• Hospital bills
• Deductible amounts
• Laboratory fees
• Licensed practical nurses
• Orthodontia
• Orthopedic shoes
• Oxygen
• Prescription drugs
• Psychiatric care
• Psychologist expenses
• Routine physical
• Seeing-eye dog expenses
• Prescribed vitamin supplements (medically necessary)

Adoption Assistance
Flexible Spending Account
The Adoption Assistance FSA helps you pay for eligible adoption expenses by contribution to the account with pretax money from your paycheck.
The maximum annual contribution to this account for 2024 is $16,810.
The account will be funded through payroll deductions, so the full elected amount will have to be acquired throughout the plan year as opposed to being available the first of the plan year.

Examples of eligible expenses are:
• Adoption agency fees for children under the age of 18, person who is physically or mentally incapable of self-care, or special needs child.
• Court costs.
• Medical services and counseling.

Dependent Care Expense Account
Eligible dependent care services for children under age 13, a disabled spouse, or incapacitated parents are eligible for reimbursement from the Dependent Care FSA.

The account will be funded through payroll deductions, so the full elected amount will have to be acquired throughout the plan year as opposed to being available the first of the plan year.

Examples of eligible expenses are:
• After-school Care
• Day Care Center
• Elder Care

Limited Purpose Flexible Spending Account (For Hsa Plan Enrollees)
This FSA is typically paired with those who elect the QDHP plan and opt in to the Health Savings Account. IRS regulations do not permit individuals to have an HSA and a Medical FSA, but individuals are allowed to have an HSA and a Limited Purpose FSA.

Limited Purpose FSAs can only be used for eligible dental and/ or vision expenses.