Did You Know?
Did you know that the maximum amount you can contribute to a Flexible Spending Account (FSA) through payroll deductions has increased for this year’s Open Enrollment? Let’s break it down:
- Healthcare FSA max has increased to $3,300
- Dependent Care FSA max has increased to $7,500
What is an FSA?
An FSA uses pre-tax dollars – deducted from your paycheck, pre-tax – to reimburse eligible expenses. Because FSAs are funded with pre-tax money, you save on State, Federal, and FICA (Social Security) taxes.
What can you use an FSA on?
You will receive an FSA debit card to use your yearly Healthcare FSA funds. This card will be pre-loaded with your annual amount.
A Healthcare FSA can be used on:
- Eligible medical, dental, and vision expenses for you and eligible dependents
- Co-pays/deductibles
- Braces
- Eye glasses
- Prescriptions
- Over-the-counter (OTC) medicines
- And more (page one)
A Dependent Care FSA can be used on:
You will have to submit your weekly claim forms for reimbursement of dependent care expenses online. This benefit will be reimbursed based on funds available in your online account.
- Eligible dependent daycare expenses for your child(ren), including after-school programs, summer day camps (child must be under age of 13 or be physically or mentally incapable of self-care)
- Elder care for an elderly parent or dependent
- And more (page two)
Where can I learn more?
Learn more about FSA’s on the State of Maryland Department of Budget and Management websitehere.