Contribute to a Health Care FSA and use before-tax dollars to pay for eligible health care expenses. An FSA can offer tax savings between 25% and 40%, depending on your tax bracket.
You may also want to consider enrolling in a Dependent Day Care FSA to save on eligible day care expenses for your children under age 13 or other qualifying relatives.
You can participate in a Health Care FSA whether or not you are enrolled in the Medical Plan; however, if you enroll in Option C of the Medical Plan, you cannot enroll in the Health Care FSA. You may enroll in a Limited Purpose FSA which can only be used for eligible dental and vision expenses.
Important: You must elect to contribute to an FSA during Annual Enrollment each fall – your FSA elections do not roll over from year to year. You may be eligible to enroll if you experience a qualified life event, such as getting married or having a child. New employees or newly benefits-eligible employees have 31 days after their hire or benefits eligibility date to enroll in FSA coverage.
In accordance with IRS limits, you may contribute up to the following amounts:
- Health Care FSA: $2,600 in 2017 (or $2,650 in 2018)
- Dependent Day Care FSA: $5,000 if single or married and file a joint tax return; $2,500 if married and file a separate tax return