Maximizing Your Benefits- A Comprehensive Guide to FSAs and DCAs

Welcome to our detailed walkthrough on Flexible Spending Accounts, FSAs, and Dependent Care Accounts, DCAs. In this session, we’re going to break down how these accounts work and how you can make the most of them for your healthcare and dependent care needs. Let’s start with Flexible Spending Accounts.

Flexible Spending Accounts: A Guide to FSAs

Save More, Stress Less

Flexible Spending Accounts (FSAs) allow you to set aside pre-tax dollars to cover qualified medical expenses, helping you save money and manage your healthcare costs efficiently. This video explains how FSAs work and how to maximize their benefits

What is an FSA?

  • Pre-Tax Savings: Set aside money from your paycheck tax-free for eligible healthcare expenses.
  • Immediate Access: Your elected annual amount is available upfront, even as deductions are taken from your pay.
  • Use It or Lose It: Most FSAs have a use-it-or-lose-it rule, but some allow limited carryover of funds (e.g., $640 for 2024).

How to Use an FSA

  • Eligible Expenses: Cover deductibles, copays, prescriptions, dental, vision, and other IRS-approved items.
  • Manage Your Claims: Use FSA debit cards for convenience or submit claims with receipts for reimbursement.
  • Track Balances: Use your FSA provider’s portal or app to monitor spending and submit claims.

Key Resources:

  • FSA Store: Find Eligible Expenses
  • IRS Guide to Qualified Medical Expenses (Publication 502)
  • Learn About FSAs on Healthcare.gov

Frequently Asked Questions

Can I carry over unused funds?

Many FSAs allow a small carryover (e.g., $640 for 2024), or a grace period to use remaining funds. Check your plan details.

What happens if I leave my job?

FSA funds are generally forfeited if you leave your job, so plan contributions carefully

Are over-the-counter items covered?

Yes, many over-the-counter medications and products are eligible. Check your FSA provider’s list for specifics.

Make the Most of Your FSA

FSAs are a smart way to save on healthcare costs while reducing your taxable income. Watch the video above to learn how to optimize your contributions and spending.