Flexible Spending Account

A Flexible Spending account is for both health expenses and dependent care expenses that are incurred during the plan year (July 1-June 30).

Employees may allocate a portion of monthly earnings, pre-tax, to be used for health expenses and dependent care expenses, which can result in substantial tax savings. This amount is locked in for the plan year. 

To participate there is a $2.85 monthly charge.

The maximum you may set aside for health expenses in 2024 is $3,200 per year.

The maximum you may set aside for dependent care is $5,000 per year.

Flex reimburses you for eligible expenses incurred between July 1 and June 30 (with a grace period that extends to September 15). All claims must be submitted for the prior plan year by December 15.

 

Cafeteria Plan Document

Tax Savings

Paying for medical expenses through the Flex Spending Plan can save you as much as 25%-28% in taxes on each dollar spent for your share of insurance deductibles, co-pays, or items not covered by insurance. Also, the Dependent Care Flexible Spending Account may save you more in taxes than the
day-care tax credit (filed with your federal income tax return).

If you are in the HDHP and have a Health Savings Account you are not eligible for medical flex spending, but you are eligible for dependent care.