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Flexible Spending Accounts

A Flexible Spending Account (FSA) allows an employee to pay for eligible out-of-pocket medical and/or dependent care expenses with tax-free dollars. At the time of hire or during each open enrollment period, the employee must elect an annual amount to contribute to the FSA account. The amount selected will be deducted from the employee's paychecks on a pre-tax basis throughout the year. When an eligible expense is incurred, a claim form and receipt documentation is submitted to the People First Service Center for reimbursement from the FSA account.

FSAs have a "use it or lose it" policy, which means the employee will forfeit any amounts unused and not reimbursed for services received during the Plan year.  However, 2018 elections allow for a maximum $500 carryover of unused funds to the next calendar year. 

Other considerations:

  • The employee must use any money contributed to a Medical Reimbursement Account or a Dependent Care Reimbursement Account on expenses incurred by the end of the plan year.
  • The employee must submit all claims by the deadline - April 15 - or the account balance will be forfeited.
  • The employee cannot change the Reimbursement Account contributions during the plan year unless a qualifying status change event occurs.
  • The minimum annual deduction amount for each Reimbursement Account is $60.
Flexible Spending Account Summary
Type Medical Reimbursement Account (MRA): Dependent Care Reimbursement Account (DCRA): Limited Purpose Medical Reimbursement Account (LPMRA):
Enroll if you have:

Standard PPO or HMO*

No medical coverage


*Not available with HIHP HMO or HIHP PPO

Eligible day care expenses for an eligible child or qualifying relative



*Not available with Standard HMO or PPO

Contribution Limits:

$60 to $2,650 in pre tax dollars

$60 to $5,000 in pre tax dollars ($2,500 if you're married filing separate tax returns)

$60 to $2,650 in pre tax dollars

Use For:

Out-of-pocket medical, prescription, dental, vision and over-the-counter medication expenses not paid by insurance or reimbursed from any other source.

Care for a child, disabled spouse or qualifying relative who is dependent on you and needs care so that you (and your spouse if you're married) can work.

Out-of-pocket dental, vision and over-the-counter medication expenses not paid by insurance or reimbursed from any other source. Not available for medical expenses.

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