Flexible Spending Accounts

Employees can contribute up to $5,000 per year to a Dependent Care FSA to pay for eligible dependent care expenses, and up to $2,600 annually to a Health Care FSA to pay for eligible out-of-pocket health care expenses, such as co-pays and deductibles. Contributions to FSA plans are deducted before taxes, which lowers your taxable income and, as a result, increases your take-home pay. Participating in FSA plans can result in considerable tax savings for those with high dependent care or out-of-pocket health care expenses.