- What is a Flexible Spending Account (FSA)?
- How it Works
- All Forms and Additional information
- Understanding Your FSA Plan (PDF Format, 122KB)*
FSAs are accounts that let you pay out-of-pocket health care and dependent daycare expenses with tax-free money. You deposit a set amount of your paycheck into these accounts before any taxes are calculated. This saves you:
- 15% - 20% on Federal taxes
- 2% - 8% on State taxes
- 7.65% on FICA (Social Security) taxes
For examples of savings and eligible expenses, view the information on the website for Discovery Benefits, SDSURF's FSA Third Party Administrator.
Contribution Limits and Eligible Expenses
You determine if you want to participate in each FSA plan and how much you will contribute to each plan every year, up to the maximums allowed by SDSURF.
- Health Care FSA Limits
In 2019 you can contribute up to $2,700 of your pre-tax salary to a Health Care FSA.
- To view a list of Health Care eligible expenses that can be reimbursed by the FSA go to the Discovery Benefits FSA Eligible Expenses web page.
- View over-the-counter medications you can purchase with your FSA dollars.
- View a list of Health FSA Frequently Asked Questions.
- Dependent Care FSA Limits
You can contribute up to $5,000 of your pre-tax salary to a Dependent Care FSA. This is a family maximum contribution so if your spouse has a Dependent Care FSA at work, the two of you can contribute a combined total of $5,000 per calendar year. If you are married and file your taxes separately, you can each contribute up to $2,500. If you elect to participate in the Dependent Care FSA, you will not be eligible to claim the Federal Income Tax Credit. Consult your financial planner/tax advisor to see which is better for your situation. If you do not have a financial planner, SDSURF's EAP plan offers financial planning benefits.