Flexible Spending Accounts (FSAs)

Flexplan offers two flexible spending accounts:

  • Health Care FSA.
  • Dependent Care FSA.
These accounts are designed to let you pay for specific health care and dependent day care expenses on a pre-tax basis. By contributing to an FSA, you can reimburse yourself for eligible expenses with untaxed money, including federal, Social Security and, in most states, state and local taxes. That can help you make your income go farther.

How FSAs Work
  • When you enroll, you decide how much to set aside in your account(s) during the calendar year for:
    • Health care expenses for services you or your dependents receive between January 1, 2019 and March 15, 2020.
    • Dependent day care expenses for services you receive between January 1, 2019 and December 31, 2019.
  • You contribute to the account(s) with pre-tax dollars deducted from your paycheck. This lowers your taxable income, and you don’t pay taxes on the money you use from your account(s).
  • When you have an eligible expense, you file a claim to reimburse yourself from your account.

FSAs are like a sale. Money you set aside in the accounts is taken off the top of your pay before taxes are withheld. If you pay income taxes and Social Security taxes, at a minimum this is probably like a “20% sale” on most of the health or dependent care services you buy. The savings could be more – depending on your income tax rate. And, even when you pay no income taxes, the Social Security tax savings is likely to be more than 7.65% – or $7.65 for each $100 you spend.

You decide when you enroll how much to set aside in your FSAs for the year. Use the HSHS Healthy Plan Cost Estimator to see how a Health Care FSA can help you save. Use the Dependent Care FSA Estimator for help deciding how much to contribute for dependent daycare expenses. Evaluate the possible tax savings using an FSA.

Important Information about FSAs

  • You may change those amounts during the year only if you have a qualified change in family or
    employment status
    that allows you to do so.
  • Under federal "use it or lose it" rules, if you don't use all the money in your FSA for services during the covered time period, you forfeit unused dollars. You have until the annual claim deadline to submit a claim for reimbursement.
  • Watch a brief video on the advantages of participating in a Health Care FSA. 

Health Care FSA

Use the HSHS Healthy Plan Cost Estimator to help you estimate your out-of-pocket medical, dental and vision costs, and see the possible federal tax savings if you use the Health Care FSA to pay for those expenses with pre-tax dollars.

Information about eligible Health Care FSA expenses is available at www.tri-starsystems.com. Medical premiums and over-the-counter medications are not eligible. In addition, for ethical and philosophical reasons, abortions, sterilizations, contraceptives, sexual reassignment, in-vitro fertilization, artificial insemination, and embryonic implantation procedures will not be allowed as reimbursable expenses.

Dependent Care FSA Estimator 

Enter your expected expenses for the year ahead to provide care for an eligible child or an adult dependent so that you can work. Estimate your expenses carefully. Due to the IRS "use it or lose it" rule, you will forfeit any money in excess of the qualified expenses you incur between January 1, 2019 and December 31, 2019 that you submit by the May 1, 2020 claim filing deadline.

Also, keep in mind that you may be eligible to take advantage of the federal tax credit for child and dependent care as an alternative to using the Dependent Care Reimbursement Account. You may wish to consult a tax advisor to determine whether the federal tax credit or Dependent Care Reimbursement Account is best for you.

FSA Form

FSA Claim Form (Tri-Star)