There are two types of Flexible Spending Accounts (FSA)—Healthcare and Dependent Care. Both are pre-tax benefits that allow you to set aside money each month towards specific expenses and reduce your taxable income.
Healthcare Flexible Spending Account
This account is used to pay for eligible medical, dental, and vision expenses such as copays, office visit charges, medications, contact lenses and/or frames, and more. The maximum annual contribution limit is $3,300. If you currently have an FSA with American Fidelity, any remaining funds up to $660 will rollover into the new plan year. For more information and to view a list of eligible expenses, visit this webpage.
Dependent Care FSA / Dependent Care Account (DCA)
This account is used to reimburse yourself for eligible dependent day care expenses, such as before-school care, summer day camp, and day care. The maximum annual contribution limit is $5,000 per household or $2,500 if married, filing separately. These funds are “use or lose” each plan year. For more information and to view a list of eligible expenses, visit this webpage.
Additional resources and information are available on American Fidelity's website