Flexible Spending Accounts
A Flexible Spending Account allows you to use pre-tax dollars to pay for dependent care and health care expenses. It is created through a pre-tax payroll deduction in an amount you specify. This money is paid out to you from the plan administrator after you submit your eligible receipts and expense claim form.
| Dependent Care Spending Account (DCSA ) |
Health Care Spending
Account (HCSA) |
Use pre-tax dollars to pay for eligible dependent care expenses that allow you and your spouse to work.
Limit: $5,000 per year if single, head of household, or if married, filing jointly; $2,500 per year if married filing separately. |
Use pre-tax dollars to pay for eligible medical, dental, prescription and vision care expenses, deductibles or coinsurance amounts not covered by your health benefits plans. You do not have to be enrolled in a County medical, prescription, dental or vision plan to enroll in this account.
Limit: $5,000 per year. |
NOTE: The IRS requires that these accounts function separately. You cannot transfer money from one account to another, have DCSA expenses reimbursed from the HCSA, or vice versa. |
Dependent Care Spending Account (DCSA)
The Dependent Care Spending Account allows you to designate up to $5,000 of your income per year on a pre-tax basis ($2,500 if married, filing separately) to pay for the care of your eligible dependent(s) in order for you to work. You may only use money from your DSA to pay expenses for care for eligible dependent(s) so that you and your spouse can work. An eligible dependent is a child under the age of 13 or an individual (including a parent) who is physically or mentally incapable of caring for his or her own needs and is therefore dependent on you according to the IRS definition of a dependent.
Health Care Spending Account (HCSA)
The Health Care Spending Account allows you to designate up to $5,000 of your annual earnings on a pre-tax basis to pay for many health care expenses. In general, this includes almost any health care expense not paid or reimbursed through health care insurance but excludes your health care premiums.
The County implemented a 2½ months grace period to the HCSA and DCSA accounts. As a result, participants will have 14½ months to incur expenses for amounts remaining at the end of a calendar year. Essentially, a participant will have until March 15th of the next calendar year to incur an expense to apply any monies remaining from a prior calendar year. This will prevent participants who have a remaining balance at the end of a calendar year from losing the money as a result of having no expenses to submit for reimbursement.
Also, the County changed the period of time a participant in HCSA and DCSA accounts will have to submit claims after a calendar year ends. A participant has 120 days to submit a claim after a calendar year ends. Therefore, the claims submission date for reimbursement of an expense after a calendar year ends is April 30th of the next calendar year. There is a 90-day grace period after you terminate from County service to submit claims for eligible expenses incurred prior to, and including your termination date.
ConnectYourCare 1 (877) 292-4040 www.connectyourcare.com
(Flexible Spending Accounts)
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