FSA... How they work and may benefit you

Flexible Spending Plans allows a portion of your salary to be redirected to provide reimbursement for unreimbursable medical and dependent care expenses.  

The District’s Flexible Spending Plan is administered by WageWorks (now HealthEquity).  You must submit a new form every year during open enrollment to participate!  At that point, you elect a specific dollar amount for each flexible spending plan you wish to participate in.  Participation in one or both can save you money by reducing your taxable income.  This is because taxes will be calculated after the elected amount is deducted from your salary.  The pre-tax flexible benefits program is operated in accordance with Federal IRS regulations section 125.  Please visit The WageWorks Employee Benefits Account Management page for more information.

 Two types of accounts are available:

 1.     Healthcare Flexible Spending Account

This pre-tax reimbursement program covers many healthcare services that are not covered by the health insurance plan, like plan deductibles, unreimbursed doctor/drug co-payments, partially reimbursed dental bills, optical bills, Lasik eye surgery, contact lenses and solutions. Please note that cosmetic procedures of any kind are not covered.  Over-the-counter medications and drugs (except insulin) used to treat an illness or condition are eligible for pre-tax reimbursement ONLY with a valid prescription.  Preventive items such as vitamins and supplements prescribed for a particular medical condition are eligible for pre-tax reimbursement.

The 2024 limit for medical flexible spending account plans is currently a $3,200 maximum contribution per enrollee.  The plan allows an employee to “rollover” up to $640 of unused healthcare flexible spending account dollars from the previous year to the current year provided that the employee enrolls for the following year.   

2.     Dependent Care Flexible Spending Account

Dependent Care, including both child care and elder care, continues to be eligible for pre-tax reimbursement if such care is required so that you and your spouse may continue to work, or go to school.  A maximum of $5,000 per family household is eligible.