A Flexible Spending Account FSA allows you to use pre-tax dollars deducted from your paycheck to reimburse eligible expenses. Because FSAs are funded with pre-tax dollars, you save on state, federal, and FICA taxes.
You may enroll in one or both of the following accounts:
Healthcare FSA
What this account covers
Eligible medical, dental, and vision expenses for you and your eligible dependents.
Examples include co-pays, deductibles, braces, eyeglasses, prescriptions, and over-the-counter medicines. Under the CARES Act of 2020, over-the-counter medicines are eligible for reimbursement without a prescription.
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Maximum annual election: $3,300
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Debit card access: Healthcare FSA debit cards are automatically reloaded each plan year and are valid for three years. Replacement cards are mailed before expiration. Additional cards for spouses or dependents may be requested through the
P&A Group State of Maryland website or the mobile app under “Benefits Card.”
Dependent Daycare FSA
What this account covers
Eligible dependent daycare expenses such as after-school programs, summer day camps, and elder daycare.
Eligible children must be under age 13 or be physically or mentally incapable of self-care.
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Maximum annual election: $7,500 (or $3,750 if married and filing separately)
Important Note About Retirement and FSA Coverage
If you retire or terminate employment during a plan year, you may only seek reimbursement for claims incurred through your last day of employment. Any remaining funds will be forfeited.
Under the Patient Protection and Affordable Care Act, FSA reimbursement is available for eligible children under age 27, including biological, stepchildren, and adopted children, regardless of residency, tax dependency, student status, or marital status.
