Health Care Expense FSA
Healthcare expense or medical FSA is commonly used to pay for deductibles, co-payments and coinsurance for the medical plan, but may also include expenses not covered by the health plan, such as dental and vision expenses. A health care FSA cannot pay for health insurance premiums, cosmetic items, cosmetic surgery or items that improve “general” health.
All items reimbursed must be intended to treat or prevent a specific medical condition such as pregnancy, diabetes or a skin cut. Generally, allowable items are the same as those qualifying for a medical or dental expense tax deduction (IRS Publication 502, Medical & Dental Expenses) as well as other FSA eligible expenses. Participants can determine how much they would like to contribute up to the maximum contribution defined by their plan.
IMPORTANT: Over-the-counter drug changes effective January 1, 2011
As of January 1, 2011 over-the-counter drugs cannot be reimbursed without a doctor's prescription. This is true even if you are purchasing over-the-counter with 'rollover' 2010 flexible spending account funds.
Dependent Care Account (DCA)
FSAs can also be established to pay for certain expenses to care for dependents that live with you while you are at work. While this oft en means child care, it can also apply to adult day care for senior dependents living with you, such as parents. It cannot be used for summer camps (other than “day” camps), tuition or long term care for parents who live elsewhere (such as a nursing home).
The dependent care FSA is federally capped at $5,000 per year. While married spouses can each elect to have this amount deducted from their paycheck and applied to expenses, all withdrawals over $5,000 are taxed (this is $5,000 for couples filing jointly or $2,500 for those filing separately). Unmarried couples can each deduct and use $5,000. Unlike medical FSAs, dependent care FSAs cannot be pre-funded. Employees can only be reimbursed as funds are deposited into the FSA. If married, BOTH spouses must earn income in order for the Dependent Care FSA to work. Th e only exception is if the nonearning spouse is disabled or a student. If one spouse earns less than $5,000, the benefit is limited to whatever that spouse earned.
Reimbursement from your Flexible Spending Account
Eligible Expenses
If you have access to an FSA debit card, you may access additional information regarding your account here:
FSA Debit Card
If you have access to an FSA debit card, you may access additional information regarding your account here:
Reimbursement Forms