The Flexible Spending Account
Save Big on Health and Dependent Day Care Expenses
Your flexible spending account (FSA) lets you save big on health and dependent day care cost using pre-tax dollars. You can use your account for co-pays, deductibles, prescriptions, and literally hundreds of over-the-counter items and everyday health care services. And with a dependent care account, you can also pay for babysitting, day care and pre-school programs, and elder care services while you’re at work.
How It Works
When you enroll in the program, you set aside some of your pay before taxes to use on eligible expenses. You can spend it any way you like, on a wide range of needs for yourself and your family. The more you put in, the more you save on your tax bill – up to thousands of dollars.
How much you save depends on how much you spend on health and dependent care, and on your tax situation. For every $100 of eligible expenses, most people will save $30 to $40 in taxes. To see how much you can save, check out the easy-to-use online calculators at www.wageworks.com.
Easy. Fast. Flexible.
Wondering if an FSA might be a hassle? Don’t. This program is built for maximum convenience, from on-the-spot access with the WageWorks Card, to great time-saving features like direct payments to providers and easy online tracking. Because everyone’s needs are different, you can pick just a health care account, just a dependent care account, or both – and choose how much to set aside in each.
You save every time you use your FSA to pay for hundreds of products and services. Eligible expenses are defined by the IRS.
Typically, your health care FSA covers:
- Prescriptions for almost any medical condition
- Over-the-counter health care products like allergy medicine, antacid, antibiotics, aspirin and that’s just through “a”, for which you have a written prescription.
- Co-payments, co-insurance and deductibles – but not insurance premiums
- Dental care, both preventive and restorative
- Orthodontia, child and adult
- Vision care, including eyeglasses, contact lenses and saline solution
- Eye surgery, including laser vision correction
- Counseling and therapy
- Psychology and psychiatry
- Chiropractic care, acupuncture and some other alternative treatments
Your dependent care FSA covers these types of expenses for your eligible dependents while you work:
- Babysitting or au pair services
- Before-and after-school programs
- Day care and nursery schools
- Pre-school programs
- Elder care services
For details and hundreds more eligible expenses, visit www.wageworks.com.
It's easy to enroll – but you must sign up during open enrollment scheduled for October 10, 2011 through November 9, 2011. For more information see your 2012 Benefits Annual Enrollment Guide for details.
Use It or Lose It!
If you elect to contribute to a health care FSA, you will have a grace period until March 15, 2013 to use funds contributed in 2012 and until April 15, 2013 to file claims. The grace period does not apply to a dependent care FSA. For more information visit www.wageworks.com or review your 2012 Benefits Annual Enrollment Guide.
Important Note: If you terminate employment or loose eligibility, you have 90 days from the date of termination or loss of eligibility to submit claims.