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Flex Spending Account Information

Any employee working for a company that offers a Federal Flexible Benefits Plan can opt for a Flex Spending Account. This account allows employees to allot a certain amount of their income into a special account used for health care expenses and child care.

  1. Types

    • The Federal Flexible Spending Accounts Program (FSAFEDS) has two types of spending accounts: Health Care Flexible Spending Account (HCFSA) and Dependent Care Flexible Spending Account (DCFSA).

    Purchases

    • Medical expenses incurred by you or a family member through a licensed or certified health care professional are eligible for reimbursement through the HCFSA. For the DCFSA, child care expenses incurred by a claimed dependent under the age of 13 or any person not able to care for themselves and leaves you unable to work are eligible for reimbursement.

    Maximums

    • The HCFSA and DCFSA have a maximum money allotment of $5,000 per year (as of 2010). The minimum required for each Flexible Spending Account is $250.

    Claims

    • Unless your company offers a paperless option (a flexible spending account debit card), you will need to submit a claim form for reimbursement for payment.

    Taxes

    • Any allotted money contributed to the flex spending account is taken out before taxes, therefore lowering your taxable income.

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