An FSA uses pre-tax dollars – deducted from your paycheck, pre-tax – to reimburse eligible expenses. Because FSAs are funded with pre-tax money, you save on State, Federal and FICA (Social Security) taxes. There are two accounts you can enroll in – the
Healthcare FSA and the
Dependent Daycare FSA.
Healthcare FSA -
Use this account to pay for eligible medical, dental and vision expenses for you and your eligible dependents. Examples of eligible expenses include co-pays/deductibles, braces, eyeglasses, prescriptions and over-the-counter (OTC) medicines. As part of the CARES Act of 2020, OTC medicines are now eligible for reimbursement and no longer require a prescription or letter of medical necessity form.
- Maximum Healthcare FSA election amount: $3,050
- Healthcare FSA debit card – debit cards are automatically re-loaded with your new plan year balance. Cards are valid for three years from the date of issue, and a new card is automatically mailed to you before your card expires. You can order cards for your spouse/dependents for free by logging into your account on the P&A Group: State of Maryland website . You can also request a card through our mobile app by going to “Benefits Card” under the main menu.
Dependent Daycare FSA -
Use this account to pay for eligible dependent daycare expenses for your child(ren), like after-school programs, summer day camps and elder daycare for an elderly parent or dependent. Your child must be under age 13 or be physically or mentally incapable of self-care.
Maximum Dependent Daycare FSA election amount: $5,000
Important Note about Retirement and your 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. If you still have additional funds in your flexible spending account, they will be forfeited.
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.
