Language Translation
  Close Menu

Flexible Spending Accounts

The state offers three types of spending accounts; Health FSA, Limited Purpose FSA, and Dependent Care FSA. Each of these plans are slightly different but each allow you to set aside pretax dollars to be used for the reimbursement of qualified expenses. Depending on your tax bracket, you could save as much as 25% on out-of-pocket family care expenses! In addition, the bi-weekly employee administration fee is paid by the state, providing you with even more opportunities to save.

All three of the plans have a use-it-or-lose-it rule. Money left at the end of the plan year is not rolled over or reimbursed. Due to this, it is important to carefully consider the amount you wish to contribute based on your expected expenditures.

Employee Enrollment Information Packet

Health FSA & Limited Purpose FSA

Health FSA and Limited Purpose FSAs allow employees to use pre-tax dollars to cover health care costs for medical, dental, vision, hearing and other out-of-pocket expenses not paid by insurance. For 2024, the annual contribution limit for the Health FSA and Limited Purpose FSAs will increase to $3,050.

A Limited Purpose FSA may only be used for dental, vision and preventive care expenses until the minimum deductible of a Consumer Driven Health Plan (CDHP) is met ($1,600 for single and $3,200 for family, per federal regulations). Once the minimum deductible is met, the Limited Purpose FSA can be used as a Health FSA. If you are enrolled in a CDHP with a Health Savings Account (HSA), your FSA automatically becomes a Limited Purpose FSA.

Dependent Care FSA

A Dependent Care FSA is used to pay for dependent care services, such as preschool, summer day camp, before or after school programs and child or elder daycare. Dependent care expenses do not include medical expenses and therefore can be used even if you participate in an HSA.

Dependent Care FSAs are not frontloaded. Portions of your biweekly pay are put into a pre-tax account to pay for eligible dependent care costs throughout the year. Currently, the maximum annual contribution amount for the Dependent Care FSA is $5,000 ($2,500 if married and filing separate tax returns).

Check your FSA balance or file an online claim: www.asiflex.com