Flexible Spending Accounts Overview
A Flexible Spending Account, or FSA, is an employee benefit program that allows you to set aside money, on a pre-tax basis, for certain health care and dependent care expenses. That means YOU keep more of your money. These programs are administered by the Federal Spending Accounts Program (FSAFEDS). This program offers three types of accounts:Health Care FSA (HCFSA)
HCFSAs are used to pay for eligible health care expenses that are not covered under your insurance plan, such as co-payments and over-the-counter medicines, such as Tylenol and Sudafed. It is sometimes referred to as a general purpose HCFSA.Limited Expense Health Care FSA (LEX HCFSA)
LEX HCFSAs are used in place of the general purpose Health Care FSA if the participant enrolled in a High Deductible Health Plan with a Health Savings Account (HSA). The Limited Expense HCFSA allows you to submit eligible dental and vision expenses only.Dependent Care FSA (DCFSA)
DCFSAs are used to pay for childcare or adult dependent care expenses that are necessary to allow you and your spouse, if married, to work, look for work or attend school full-time. However, if you did not find a job and have no earned income for the year, your dependent care costs are not eligible.
Source: Office of Personnel Management