A Flexible Spending Account is a benefit plan that allows you to direct a part of your pay, on a pre-tax basis, into a special account that can be used throughout the year to reimburse yourself for certain out-of-pocket expenses. Because this money goes into your Flexible Spending Account before federal taxes or Social Security taxes are withheld, you pay less in taxes, and ultimately, have more disposable income.
HEALTH CARE FSA
You may contribute up to $2,500 to the Health Care FSA each year. Then you can reimburse yourself for eligible health care expenses, such as:
- Medical, dental and vision deductibles, copays and coinsurance amounts.
- Medical, dental and vision charges that exceed R&C or plan maximums (e.g., orthodontic expenses after lifetime maximum has been met)
- Prescription drug copays and expenses for certain over-the-counter drugs and medicines
Out-of-pocket expenses for over-the-counter medicines and drugs require a prescription from your doctor for reimbursement. Refer to aetna.com/FSA site for more details.
DEPENDENT CARE FSA
You may contribute up to $5,000 each year to the Dependent Care FSA (or up to $2,550 if you and your spouse file separate tax returns and both contribute to a dependent care FSA). Then, you reimburse yourself for eligible dependent care expenses (dependent children must be under the age of 13) incurred so that you (and your spouse, if you are married) can work outside the home, including:
- Day care expenses by individual inside or outside your home
- Day care at a licensed nursery school, day camp or day care center
- Day care for an elderly dependent who spends at least eight hours a day in your home