Flexible Spending Accounts (FSA)
A Flexible Spending Account (FSA) is a tax-favored program that allows employees to pay for eligible out-of-pocket health care and dependent care expenses with pre-tax dollars. By using pre-tax dollars to pay for eligible health care and dependent care expenses, an FSA gives you an immediate 20% to 40% discount on these expenses. The discount equals the taxes you would otherwise pay on that money.
FSAFEDS offers three types of Flexible Spending Accounts:
Health Care Flexible Spending Account (HCFSA) can be used to pay for qualified medical costs and health care expenses that are not paid by your Federal Employees Health Benefits (FEHB) plan or other insurance, but cannot be used to pay for any type of insurance premiums, including long-term care insurance premiums.
- The Limited Expense Health Care Flexible Spending Account (LEX HCFSA) is only available to employees who enroll in a Federal Employees Health Benefits (FEHB) Program or under a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA). Expenses are limited to dental and vision care services/products that meet the IRS definition of medical care. By using a LEX HCFSA, you can preserve the funds in your Health Savings Account to use/save for other purposes.
- The Dependent Care Flexible Spending Account (DCFSA) can be used to pay for eligible dependent care expenses such as child care for children under age 13 or children who are physically or mentally incapable of self-care and, in some cases, elder care, so that you – and your spouse, if you are married – can work, look for work, or attend school full-time.
Key points to remember
You have 60 days from the date of your appointment to enroll. Visit the FSAFEDS website for an enrollment form.
- If you do not enroll, you must wait until the next Open Season to enroll.
- You must re-enroll each Open Season.
Frequently Asked Questions
How do I enroll in a Flexible Spending Account?
Visit the FSAFeds website to enroll online. New employees must enroll within 60 days of their appointment.
Where can I find more information about Flexible Spending Accounts?
The FSAFeds website provides information about the different types of Flexible Spending Accounts, enrollment, claim forms and more.
Who do I contact if I have questions about enrollment?
If you have questions about enrolling in a Flexible Spending Account contact FSAFEDS at 1-877-372-3337 or via email at FSAFEDS@shps.com.