FSAs allow you to reduce your taxable income by setting aside money on a before-tax basis to pay for eligible health care and dependent day care expenses.
- The Health Care Flexible Spending Account (Health Care FSA) can be used to pay for eligible health-related expenses including annual deductibles, copays and coinsurance. The maximum contribution you may make to your Health Care FSA is $2,650.
- The Dependent Day Care Flexible Spending Account (Dependent Day Care FSA) can be used to pay for eligible day care expenses for dependent children under the age of 13, for disabled dependents and elder care that allow you and your spouse to work or attend school on a full-time basis. The maximum contribution you may make to your Dependent Day Care FSA is $5,000. And, you can open a Dependent Day Care FSA with any medical plan option, even if you waive Firm coverage.