Flexible Spending Account (FSA)
Making the most of your money
​What if you could make your earnings stretch further?
A Flexible Spending Account (FSA) can help you do just that. Mohave Community College offers you an opportunity to participate in two FSA programs: A Health care FSA and a Dependent care FSA. An FSA is a tax-effective, money-saving option that will help you pay for qualified health care expenses that aren’t covered by your medical plan, and for dependent care services necessary to enable you to work.
Here’s how an FSA works:
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Eligible medical expenses. Use pre-tax dollars to pay for eligible health care expenses not reimbursed by an insurance plan. All IRS code 213(d) expenses are eligible, including your deductible, coinsurance and copays, and expenses above usual and customary limits. Out-of-pocket expenses on prescription drugs, dental, vision, hearing and orthodontic care are eligible as well. Certain over-the-counter items may qualify, too.
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Dependent care costs. Pre-tax dollars can be set aside for day care type expenses for eligible children or adults. Expenses are eligible if they’re for the care of a person under age 13, or an older dependent who is unable to care for themselves. They must regularly spend at least eight hours a day in your home.
Maximize your savings potential
You will gain the most savings from your FSA if you plan carefully. When you enroll in an FSA, you designate in advance the amount of money you wish to have deducted from your salary and deposited into your FSA over the length of a year. To do this, you must estimate in advance the annual costs you want your FSA to cover.
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If you underestimate, you will deplete your FSA before the end of the year, losing some of your
tax-savings potential. If you overestimate and there is money left in your FSA at the end of the year, you will unfortunately forfeit this money. The IRS’s rule is use or lose.
These materials were created to help you understand the benefits available to you. This is not a Summary Plan Description and is not intended to replace the benefit summary or schedule of benefits contained within the Plan. If any provision of these materials is inconsistent with the language of the Plan, the language of the Plan will govern. Meritain Health is not an insurer or guarantor of benefits under the Plan.
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