Flexible Spending Accounts (FSAs)

Maximize Your Savings with FSAs

What is a Flexible Spending Account (FSA)?

A Flexible Spending Account (FSA) is a tax-advantaged savings tool that allows you to set aside a portion of your earnings to pay for qualifying out-of-pocket medical, dental, and childcare expenses. By using pre-tax dollars, you can reduce your taxable income and maximize your savings on essential expenses.

How Does an FSA Work?

  • Contribute Pre-Tax Dollars: Decide how much you want to contribute to your FSA for the year. Your contributions are deducted from your paycheck before taxes are applied, which lowers your taxable income.
  • Using Your Funds Can be Easy & Convenient: Easily use your FSA funds by using your convenient FSA debit card or by submitting a claim for reimbursement via our website or mobile app.
    • You will receive a Visa debit card shortly after signing up for a flexible spending account.
    • Easily submit claims via our website or mobile app
  • Reap the Benefits: Enjoy the tax savings and the convenience of having funds readily available for your qualifying expenses.
  • Use it Or Lose It: The LLUH FSA plan allows members to roll over some of your unused funds from one plan year to the next to minimize risk of losing funds. Any unused funds over the maximum roll over amount are forfeit if not used by the end of the calendar year.
    • The maximum carryover is now indexed at 20% of the IRS Health FSA maximum election amount and will increase accordingly as the maximum election increases in future years.
    • The maximum election for FSA-Health in 2024 is $3,200
    • The Roll-Over does not apply to FSA-Dependent Care

Why Choose an FSA?

  • Tax Savings: Contributions are made with pre-tax dollars, reducing your taxable income and potentially lowering your overall tax bill.
  • Wide Range of Eligible Expenses: Use your FSA for a variety of healthcare-related expenses, including doctor visits, medications, and some medical equipment. See below for more information.
  • Convenience: Easily manage your account with our online consumer portal and mobile APP, making it simple to track your spending and submit claims.
    • You can use the website or app to submit your supporting documentation, if needed.

What are some eligible Expenses?

  • Medical Expenses: Doctor visits, lab work, diagnostic imaging, hospitalizations
  • Vision Expenses: Exams, prescription glasses and contacts
  • Medications: Most prescriptions and selected over-the-counter drugs
  • Dental Services: Checkups, cleanings, restorative treatment, and orthodontia
  • Medical Equipment: Items such as crutches, blood pressure monitors, and first aid supplies
  • Personal Care: Sunblock (SPF 15 or higher), prenatal vitamins, massage (if prescribed by a physician), and more!
  • Click here for a more thorough list of qualifying expenses

Dependent Care Flexible Spending Account (Dependent Care FSA)

What is a Dependent Care FSA?

A Dependent Care Flexible Spending Account (FSA) is a special type of FSA designed to help you pay for eligible dependent care expenses. This account allows you to set aside pre-tax dollars to cover costs related to the care of children or other dependents while you are at work.

How Does a Dependent Care FSA Work?

  1. Contribute Pre-Tax Dollars: Choose the amount you want to contribute to your Dependent Care FSA for the year (up to $5,000 per household, or $2,500 if married & filing separately). These contributions are deducted from your paycheck before taxes, reducing your taxable income.
    1. Use It or Lose It: Similar to standard FSAs, Dependent Care FSAs generally follow a “use it or lose it” rule. Funds must be used within the plan year to avoid forfeiture. There is no roll-over provision for FSA-Dependent Care.
  2. Pay for Eligible Expenses: Use your Dependent Care FSA funds for qualified expenses such as daycare, preschool, after-school care, or elder care.
  3. Reimburse Yourself: Submit claims for reimbursement through your Dependent Care FSA for your incurred expenses.

Why Choose a Dependent Care FSA?

  • Tax Savings: Contributions are made with pre-tax dollars, reducing your taxable income and saving you money on dependent care expenses.
  • Wide Range of Eligible Expenses: Cover costs for daycare centers, in-home care, and other care services for dependents under the age of 13 or for a disabled spouse or dependent.
  • Easy Reimbursement: Streamlined claims process via our website or mobile app ensures you get reimbursed quickly for eligible expenses.

What are Eligible Expenses?

  • Eligible dependents include:
    • Your dependent children under age 13;
    • A person of any age whom you claim as a dependent on your federal income tax return and who is mentally or physically incapable of caring for himself or herself.
  • Daycare and Preschool: Costs for child care centers and early childhood education programs.
  • Before and After-School Care: Programs that provide care for school-aged children outside regular school hours or during school breaks such as day camps. (Please note, overnight camps and out of country care are excluded)
  • In-Home Care: Payments to caregivers or babysitters who provide care in your home. (Please note, the person receiving your FSA funds cannot be your legal dependent)

Contact Us

For important FSA documents, visit our page on the LLUH OnePortal

Contact us for more information or assistance.

LLUH Department of Risk Management
909-651-4010
RiskManagementFSA@llu.edu