The Flexible Spending Accounts (FSA) offer you the opportunity to pay certain healthcare and dependent care expenses with pretax dollars. Participating in an FSA reduces your taxable income, which means you owe less tax and spend less for qualified expenses.
All FSA-eligible expenses must be incurred between January 1, 2024, and December 31, 2024. Claims for reimbursement must be filed before March 31, 2025.
The City offers two types of FSAs: one for health care and another for dependent day care.
The Health Care FSA is available only with:
Participants in the Anthem BCBS HDHP or Kaiser HMO HDHP may not participate in the Health Care FSA.
With a Health Care FSA, your savings can be used toward your doctor visit copays, deductible expenses, as well as dental and vision care needs. Your entire Health Care FSA election is available to you on January 1, even if you haven’t yet saved the full amount.
For 2024, you can elect to contribute up to $3,050 annually in your Health Care FSA.
You will lose any money over $610 left in your Health Care FSA after March 31, 2025, so plan your expenses carefully. $610 can be rolled over into the next year.
Enrolling in a Dependent Care FSA allows you to put aside dollars on a pretax basis to use for qualified expenses, such as child and elder care. It is not used for healthcare expenses.
The Dependent Care FSA is designed to allow you and your spouse to work. So, if your spouse does not work, you cannot contribute to the Dependent Care FSA. You can contribute if your spouse is disabled or a full-time student.
For 2024, you can contribute up to $2,500 if you and your spouse file separate tax returns OR up to $5,000 if you are single or if you and your spouse file a joint return.
With a Dependent Care FSA, the money is available only as it is deposited in your account. Any funds in a Dependent Care FSA that are unused at the end of the year will be lost.