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Flexible Spending Accounts

Flexible spending accounts (FSAs) help you save on income tax, so they adhere to IRS code

FSAs allow you to use pre-tax dollars to reimburse yourself for IRS-qualified expenses.

  • Use a Health Care FSA for IRS-qualified medical and dental expenses not covered in your plan.
  • Use a Dependent Care FSA for IRS-qualified day care expenses that allow you to work.

FSAs are annual accounts. If you want an FSA for the coming plan year, you must enroll during Open Enrollment. You can't revoke your participation in an FSA after it goes into effect.

You choose an annual amount to contribute to your account, and your payroll deducts your salary contribution (which must be at least $20) before calculating your taxes. Paying for eligible expenses with these pre-tax dollars saves on your taxes.

Here are things to know about these accounts.

  • FSAs operate according to IRS code.
  • The annual employee contribution limit for an individual health care FSA is $2,550.
  • The annual employee contribution limit for an individual dependent care FSA $5,000.
  • The minimum monthly contribution amount is $20.
  • When you enroll, you enroll for the entire plan year; plan accordingly.
  • You forfeit any funds that you don't use and claim for valid expenses by the deadline.
  • Your payroll will deduct even portions (which must be at least $20) of your annual total election amount from each paycheck over the course of the year. For academic-year employees, this may be nine or 10 months.

See PEBB's Summary Plan Description for details about eligibility and enrollment in the FSA program. These are individual tax-favored accounts; PEBB does not provide tax advice. Please seek tax advice from a qualified tax advisor.

PEBB contracts with ASIFlex to administer the FSA program under PEBB administrative rules and in keeping with IRS code. For more information visit ASIFlex online at http://orpebb.asiflex.com.

ASIFlex's website for PEBB FSA enrollees.