The Flexible Spending Accounts, administered through Discovery, are a great way to save money on eligible health care and dependent care expenses. You decide how much you want to save each year, then contributions come out of your paycheck before taxes are taken out. You can contribute to either or both FSAs:

Flexible Spending Account – Health Care Flexible Spending Account – Dependent Care
  • Allows you to put money aside on a pretax basis for unreimbursed healthcare expenses
  • You can contribute up to $2,700 for 2019 in your health care FSA
  • You must make a new election each year during open enrollment to participate
  • Allows you to put money aside on a pretax basis for dependent care expenses
  • If you work and have an eligible elderly dependent or child that needs care during the day, the Dependent Care FSA may be right for you. Child(ren) have to be under the age of 13
  • You can contribute up to $5,000 per year in your Dependent Care FSA or $2,500 if you are married and filing separately
  • You must make a new election each year during open enrollment to participate

 


 

IMPORTANT – Estimate Carefully!

Keep in mind, FSAs are “USE-IT-OR-LOSE-IT” accounts. You will forfeit any amount in your Health Care account at the end of the plan year and any amount left in your Dependent Care account. Plan for expected costs and save on tax expenses!

There are some important things to consider before you enroll in the FSAs:

  • If you are enrolled in the Consumer Choice or Bronze Medical Plan, you cannot contribute to the health care FSA
  • Our plan year is from July 1 through June 30, so money you contribute must be used during that timeframe. You will have a 2½ month grace period beyond June 30 to incur expenses

What’s an eligible expense?

  • Health Care FSA — Plan deductibles, copays, coinsurance, and other health care expenses. To learn more, see IRS Publication 502 at irs.gov.
  • Dependent Care FSA — Child day care, babysitters, home care for dependent elders, and related expenses. To learn more, see IRS Publication 503 at irs.gov.