Flexible Spending Accounts (FSA) allow you to designate a set amount of money and have it taken out of each paycheck and deposited into an account to be used for specific expenses. Federal Income and Social Security taxes will not be withheld from your contributions, making your taxable income lower. You may enroll in the Healthcare FSA for medical, dental, vision, pharmacy, and other related expenses and / or the Dependent Care FSA primarily for dependent day care expenses.
Healthcare FSA accounts are limited to $3,200 per year for 2024 per employer. If you're married, your spouse can contribute up to the max his employer allows as well.
For Dependent Care FSA's, you may contribute $5,000 if you are married and filing a joint return, or if you are a single parent. If you are married and filing separately, you may contribute up to $2,500 per parent per year.
Use the money in these accounts to pay for eligible out-of-pocket healthcare (medical, dental, vision expenses) and dependent care (day care) expenses for yourself, your spouse, your children or for any person you claim as a dependent on your federal income tax return.
Remember to carefully estimate your plan year expenses when making an election. You must use all of the funds in your FSA accounts by the deadline or the funds are forfeit per the IRS regulations.
2024 Plan Year Maximums
Please note: if you terminate employment or retire, eligible FSA claims must be incurred prior to your benefits-end date, regardless of your FSA balance.
Claims must be incurred within 2 ½ months following the last day of the plan year (by March 15, 2024) in order to be eligible for reimbursement. All 2023 FSA claims must be submitted to the FSA administrator by April 30th, 2024 in order to be considered for reimbursement.
Over-the-counter (OTC) drugs are available without requiring a prescription. Some examples of allowed OTC items are:
A list of eligible vs ineligible expenses is available on the Resources page.
If your spouse is not employed, your dependent care expenses are not eligible for reimbursement unless your spouse is a full-time student or is physically or mentally incapable of caring for himself / herself.
Eligible Dependent Care FSA expenses include before and after-school programs, licensed day care centers, nursery school or preschool, summer day camps, transportation to and from eligible care, an adult-day-care center, or elder care (in your own home or someone else’s). You can elect a Dependent Care FSA even if you have declined health coverage.
A childcare provider may include a family member or friend, but does not include a relative under the age of 19 and your child, or stepchild. The caregiver cannot be someone you claim as an exemption on your federal tax return. You must have a federal tax ID number or social security number for the service provider to claim reimbursements for dependent care.
Funds must be used by December 31, 2023 or they are forfeited.
Eligible Expenses Must Be for the Care of:
Debit Card Purchases
You will receive a debit card for your FSA plan. This debit card may be used to pay for eligible medical care expenses. Using a debit card is a convenient way to pay for your FSA expenses as many health providers accept the debit card. When you use your debit card, the funds are pulled from your account and paid to the health provider directly. This eliminates the need for you to pay out-of-pocket and file a claim to be reimbursed.
Please remember to keep all FSA claim receipts, even if you use your debit card. Some debit card claims will require you to provide a receipt to the plan administrator. In the event the FSA administrator needs additional information from you, you will receive a communication requesting receipt(s).
Not all vendors accept the debit card. Should you need to pay for an eligible expense and be reimbursed from your FSA, you will need to submit a claim to the address indicated on the claim form with appropriate documentation.
The IRS requires that any unused money in your account at the end of the grace period must be retained by your employer. You must use all of the funds in your account by the end of the plan year or the funds are forfeited.
The plan year runs from January 1 through December 31. Refer to the Summary Plan Description (SPD) for details.
Once you are enrolled, you may access https://medcom.wealthcareportal.com and register as a member. You may access your balance and claims information, and view other important FSA plan information on this website.
Medcom also offers a free mobile app for FSA participants to access your accounts from anywhere at any time. You will enjoy convenient mobile options to check balances, view transaction details, request a reimbursement, and submit documentation on the go.