Flexible Spending Account plans allow you to pay for eligible out-of-pocket expenses for yourself and your eligible family members on a pretax basis.
As a result of enrolling in a Flexible Spending Accounts (FSA), your salary is reduced before taxes are assessed, and you pay less in taxes.
Health-related expenses can come in many forms—and not all of them are covered by your medical, dental and vision plans. To get started, determine the annual amount of your contributions to a plan, subject to the contribution limit for that plan. An equal portion of that amount is deducted from your paycheck and credited to your Health FSA account. When you have eligible expenses, you pay them from your account.
Eligible expenses include:
- Copayments and deductibles, but not premiums
- Prescription drugs
- Eyeglasses and contact lenses
- Laser eye surgery
- Other health care expenses that are not reimbursed by your medical, dental or vision plan
Dependent Care FSA
Making sure that your child or other loved one is well cared for while you’re working can sometimes be costly. Fortunately, the university’s Dependent Care Flexible Spending Account (DepCare FSA) allows you to set aside pre-tax money each year for dependent care expenses, helping you budget for these costs and saving you money on taxes.
Eligible expenses for qualifying dependents include:
- Before and afterschool care
- Preschool and nursery school expenses
- Extended day programs
- Au pair and nanny services (the amounts paid for the care of the dependent)
- Babysitting expenses (both in and outside of your home)
- Summer day camp for a child under 13
- Elder day care expenses