With a Flexible Spending Account (FSA), you can save 20-35% on average on health care and dependent care expenses for yourself and family members. This includes expenses for co-pays, prescription drugs, preschool, and much more!
Also known as Section 125 Benefit Plans, there are two types of Flexible Spending Accounts (FSAs): Health Care and Dependent Day Care.
“One thing I love about my FSA is the debit card. If I am shopping at Walmart or Longs, I always swipe my FSA card first. Most major retailers have inventory systems that know which items are FSA-eligible.”
– Joaquin, 16 year participant
Health Care FSA
You can use your Health Care FSA funds to pay for health, dental, and vision care expenses for yourself, your spouse, and all of your dependents. The maximum contribution you can make to the Health Care FSA is $3,050 per year.
The Health Care FSA is 100% pre-funded. That means your entire election amount for the year is available to you the week after your first payroll deduction, regardless of how much money you have deposited into the account. If you are planning a large surgery or other large expenditure like braces, the Health Care FSA can help you to spread out the payments over the year.
Common Eligible Health Care Expenses:
- Medical co-pays
- Prescription and over-the-counter drugs
- First-aid products
- Feminine products
- Hand sanitizers and sanitizing wipes
Surprisingly Eligible Health Care Expenses:
- Sunscreen
- Baby monitors
- Electrolyte drinks
- Blemish patches
- Heating pads and massage devices
Visit the FSA Store for 2,500+ FSA eligible items.
Dependent Day Care FSA
The Dependent Day Care FSA can be used to pay for day care expenses for your qualified dependent(s) while you (and your spouse, if you’re married) are working, looking for work, or attending school full time. The maximum contribution you can make to the Dependent Day Care FSA is $5,000 per household for single taxpayers and married couples filing jointly, or $2,500 for married people filing separately. Married couples have a $5,000 limit, even if each has access to a separate Dependent Day Care FSA through his or her employer.
Common Dependent Day Care Expenses:
- Preschool tuition
- Before and after-school care
- Summer fun/Summer day camp
- Adult day care
How to use an FSA
The amount you decide to set aside for health care and/or dependent day care will be taken directly out of your earnings pre-tax and deposited into a special account. Depending on which options you choose, you can either use a PIOPAC Debit Card to pay for eligible expenses directly from your FSA balance or pay out-of-pocket then submit paperwork for reimbursement.
If you are on a bi-weekly or semi-monthly pay cycle, deductions will be taken twice a month. If you are on a weekly pay cycle, deductions will be taken four times a month.
How to Enroll in FSA Health and Dependent Day Care:
The open enrollment period is now closed.
Our FSA plans accept enrollments only during our annual open enrollment period from October-November of each year. Newly hired employees may sign up outside of open enrollment, but must do so during their initial enrollment window or wait until open enrollment.
Newly hired employees who express interest in our flexible spending programs will receive an email with instructions on how to enroll into the Tax Savings Plans from [email protected].
Links and Resources
- Flexible Spending Account (FSA) Participant Handbook
- List of Eligible and Ineligible Health Care FSA Expenses
- List of Eligible and Ineligible Health Care FSA DDC Expenses
- FSA PIOPAC Debit Card FAQs
- FSA PIOPAC Debit Card Retailers
Questions?
Contact the ALTRES Benefit Services Team
Call: (808) 591-4995
Email: [email protected]
