Flexible Spending Accounts

Using a Flexible Spending Account can save most employees 22% to 38% on the cost of out of pocket expenses for health and dependent care services. Each part of a Flexible Spending Account has special advantages and restrictions. You should read this web page carefully. You may want to discuss your personal situation with a tax advisor before deciding how to make a Flexible Spending Account work for you. The Flexible Spending Accounts are administered by P&A Group. Please consult the official Benefits Guide Book for complete plan details.

Use it or lose it (forfeiture):
Because of the favorable tax treatment you receive through this type of account, there is an IRS restriction that applies. The restriction states that any money remaining in your account(s) at the end of the grace period will be forfeited.

IMPORTANT NOTE: If you retire or terminate employment or lose benefits eligibility during the plan year, you may only seek reimbursement for claims incurred through your last day of employment. You have 90 days from the date of your termination to submit claims for reimbursement. Remaining unused funds will be forfeited

Dependent (day) care Flexible Spending Account (DFSA

The dependent (day) care Flexible Spending Account (DFSA) is designed to give you a tax saving way to pay for these expenses. This account works much like the health care reimbursement account – with a few twists. It is important to remember that the dependent day care expenses must meet certain IRS requirements. The expenses must be necessary for you to continue working. If married, you and your spouse must both be working, or your spouse must be a full-time student or disabled. To be considered a “dependent,” the person receiving care must be eligible to be claimed as your dependent on your federal income tax return and be either:

under the age 13; or
your spouse or other dependent who is physically or mentally incapable of self-support, and who spends at least 8 hours per day in your home.