FSAs

Flexible Spending Accounts (FSAs)

FSAs allow you to set aside pre-tax dollars to pay for eligible health and dependent care expenses.* Each year, you must elect the annual amount you want to contribute to your FSA(s). Your contributions will be deducted pre-tax from your paycheck, which can help reduce your taxable income. You may not make changes to FSA elections during the plan year unless you experience a qualifying life event.

Please note: The Limited Purpose FSA is available to Choice Fund PPO with HSA plan members only. HSA plan members are not eligible to participate in the Health Care FSA.

Learn more about your three FSA options.

*For a complete list of eligible expenses, review IRS Publication 969 and Publication 502

If you participate in a Health Care FSA, you can set aside pre-tax dollars from your paycheck to be used for reimbursement of eligible health care expenses.* You may submit reimbursement claims for eligible expenses, such as medical, dental, and vision expenses, including deductibles, copays, and prescriptions, that you, your spouse, and your children incur during the plan year. When you incur an eligible expense, you can use your Discovery Benefits debit card and/or submit documentation for reimbursement.

Note: If you are enrolled in the HSA plan, you are not eligible to participate in the Health Care FSA.

The Limited Purpose FSA is available to HSA account holders only to set aside pre-tax funds for eligible dental and vision expenses* for you, your spouse, and your children.

The Dependent Care FSA lets you use pre-tax dollars to pay eligible daycare expenses for children age 12 and under, or elder dependents who are unable to care for themselves. Care can be provided through daycare, day camps, preschool, and caregivers for disabled dependents.

Rules to Keep in Mind

FSAs offer significant tax advantages, but are subject to IRS regulations:
  • The IRS has a strict “use it or lose it” rule for FSAs. If you do not use the full amount in your FSA by the deadline to incur expenses, you will lose any remaining funds.
  • Once you enroll in the FSA, you can only change your contribution amount if you experience a qualifying life event.
  • Each account functions separately. You cannot transfer funds from one FSA to another.
  • You cannot contribute to a Health Care FSA if you enrolled in the HSA plan.
Review your benefit guide and the WEX Flexible Spending Account Employee Guide for detailed plan information.