Flexible Spending Accounts (FSAFEDS)
Flexible spending accounts (FSA), like FSAFEDS, offer pre-tax dollar savings for out-of-pocket health and dependent care expenses. Since the money you contribute is not subject to current payroll taxes, you end up paying less in taxes and taking home more of your paycheck. Joining FSAFEDS is like getting a 30% discount on what you and your family spend on expenses not covered through health insurance, medical care, daycare, babysitting, and more.
FSAFEDS allows you to save money for health care expenses with either a Health Care FSA or a Limited Expense Health Care FSA. Think of it as a savings account that helps you pay for items that typically aren’t covered by your Federal Employees Health Benefits (FEHB) Plan, the Federal Employees Dental and Vision Insurance Program (FEDVIP), or other health insurance coverage.
FSAFEDS also offers an account for families with young children or elder care expenses – the Dependent Care FSA. This account allows you to set aside money to pay for your day care expenses.
Enrollment in an FSA is completely voluntary. You must choose to enroll each calendar year as your participation will not automatically carry over from year to year. Visit FSAFEDS to learn the ins and outs of how the program works.
A Health Care FSA (HCFSA) can help you cover medical costs not usually covered or reimbursed by health care plans. The 2023 annual contribution limit is $3,050, with a minimum of $100. You can carry over up to $610 remaining in your HCFSA account from one plan year to the next.
FSAFEDs offers a complete list of qualified out-of-pocket health care expenses. These include costs such as:
- Medical co-pays, co-insurance and deductibles
- Out-of-pocket dental and vision expenses
- Professional services such as physical therapy, massage therapy, chiropractor or acupuncture
- Prescription drugs
- Over-the-counter products
HCFSA will NOT cover health insurance, life insurance, long-term care insurance or any other insurance premiums or costs for temporary continuation of coverage.
A Limited Expense Health Care FSA (LEX HCFSA) can help pay for dental and vision care services and products. It is only available to employees enrolled in a Federal Employees Health Benefits (FEHB) high-deductible health plan (HDHP) and who also have an HSA, or if the spouse is enrolled in a non-FEHB HDHP and has an HSA. The 2023 annual contribution limit is $3,050, with a minimum of $100. You can carry over up to $610 remaining in your LEX HCFSA account from one plan year to the next.
The LEX HCFSA is limited to eligible dental and vision care services and products. FSAFEDs offers a complete list of eligible LEX HCFSA expenses, which include costs such as:
- Dental cleanings, exams, fillings and crowns
- Braces and other orthodontia
- Vision exams and eyeglasses
- Contact lenses and solutions
- Vision correction procedures
Cosmetic services and products, even if dental or vision-related, are not eligible for reimbursement.
A Dependent Care FSA (DCFSA) can help you pay for dependent care services for dependent children under age 13 or dependent of any age if claimed on a federal tax return and incapable of self-care mentally or physically. The 2023 annual contribution limit is $5,000 per household ($2,500 if married filing separately), with a minimum of $100.
DCFSA funds cannot be carried over between plan years so participants should plan carefully. For information on how DCFSA impacts your federal income taxes or the Child and Dependent Care Tax Credit, please see IRS Form 2441, "Child and Dependent Care Expenses" (attached to Form 1040) (PDF) or speak with your tax advisor.
FSAFEDs offers a complete list of eligible dependent care expenses, such as:
- Childcare at a day camp, nursery school, or by a private sitter
- Summer or holiday day camp
- Before and after-school care
- Late pick-up fees
- Qualified adult care services
- Child or adult daycare
- Housekeeper whose duties include childcare
- Activities in lieu of childcare (swim lessons, music lessons, arts and crafts, etc.)
DCFSAs will not cover tuition or education fees, field trips, overnights camps, transportation expenses, or late payment fees.
How Do I Enroll?
Enrollment is completed online at FSAFEDS. To enroll, you will need:
- Name of employing agency
- Name of Federal Employee Health Benefits (FEHB) and/or Federal Vision and Dental Insurance Program (FEDVIP) plans, if enrolled
- Bank account information for direct deposits
- Social security number
When Can I Enroll?
- New employees can enroll within 60 days of their start date.
- All employees can enroll or reenroll during Federal Benefits Open Season (mid-November to mid-December) for the upcoming calendar year.
- Belated enrollment is possible in limited situations or during a qualifying life event (QLE).
How Do I Make Changes?
Once a bi-weekly contribution amount is elected, it cannot be stopped or changed during that calendar year except due to a QLE. You must complete the QLE enrollment process from 31 days before to 60 days after the QLE.
FSAFEDS allotments terminate as of the date of your separation or retirement. The balances in your accounts are treated differently upon separation or retirement before the end of the calendar year.
- Health Care FSA (HCFSA) and Limited HCFSA – only expenses occurring prior to date of separation or retirement are reimbursable
- Dependent Care FSA – only expenses occurring during the calendar year of separation are reimbursable
|2023 Benefit Period begins||Jan. 1, 2023|
|Last day to submit a qualifying life event for 2023 changes||Sep. 30, 2023|
|2024 Federal Benefits Open Season||Mid-Nov. to Mid-Dec. 2023|
|Last day to incur 2023 HCFSA or LEX HCFSA expenses||Dec. 31, 2023|
|2024 Benefit Period begins||Jan. 1, 2024|
|Last day to incur 2023 DCFSA expenses||Mar. 15, 2024|
|Last day to submit 2023 FSAFEDS reimbursement claims||Apr. 30, 2024|
|Last day to submit a qualifying life event for 2024 changes||Sep. 30, 2024|