A Flexible Spending Account (FSA) is an account that allows you to set aside pre-tax dollars to pay for qualified healthcare or dependent day care expenses. You choose how much money you want to contribute to an FSA at the beginning of each plan year and can access these funds throughout the year. All FSA contributions are pre-tax, which means you save money by not paying taxes on the amounts you set aside to pay for eligible healthcare and dependent care expenses.
There are hundreds of eligible expenses for your FSA funds, including prescriptions, doctor office copays, health insurance deductibles and coinsurance for you, your spouse or eligible dependents.
If you retire or terminate employment during a plan year, you may only seek reimbursement for claims incurred through your last day of employment. If you still have additional funds in your flexible spending account, they will be forfeited.
NOTE: Over the counter medications are not eligible for reimbursement under your healthcare FSA without a prescription. Insulin is still eligible for reimbursement.
In accordance with the Patient Protection and Affordable Care Act (PPACA), an employee may obtain FSA reimbursement for his/her children (as defined by the IRC§ 152, i.e., biological, stepchild, adopted), who have not obtained age 27 by the end of the tax year. This includes children that no longer live with their parents, are not listed as dependents on a parent’s tax return, are no longer a student, or are married.
45 Calvert Street, Annapolis, MD 21401
300-301 West Preston Street, Baltimore, MD 21201
Toll Free (800) 705-3493