Flexible Spending Accounts (FSA)
A flexible spending account (FSA) is an employer sponsored
plan that allows to deduct dollars from your paycheck and deposit them into a special account that’s protected from taxes. FSA accounts are exempt from federal taxes, Social Security (FICA) taxes and, in most cases, state income taxes. The money in an FSA can be used for eligible health and/or dependent care expenses that are incurred while you are participating in the plan.
There are two types of flex spending accounts that employees may participate in.
1) Health Care FSA - Covers medical, prescription, dental and vision expenses.
2) Dependent Care FSA - Covers dependent care expenses including daycare, nursery school and day camp for children, and services for adult dependents who cannot care for themselves.
Health Care FSA
Our Flex provider, Flex Administrators, have partnered with the FSAStore (www.fsastore.com) to help you with purchasing FSA eligible items. Discounts may be available on the website.
Did you know?
Items that are FSA eligible may or may not a doctor’s prescription.
Items that do not include a doctor’s prescription include bandages, sunscreen, contact lens solution, first aid kits, heating pads, lip balm, thermometers and walking aids.
Items that do need a doctor’s prescription include allergy medicine, cough, cold and flu medicine, eye drops, nasal spray, pain relievers, sleep aids and topical skin treatments.
For a list of IRS approved expenses, please click here.