What is a Flexible Spending Account (FSA)?

It is a benefit offered by your employer and an opportunity to save money on expenses that typically occur throughout the year.

An FSA works like a personal expense account. You set aside a portion of your salary before taxes, and you decide how much you want to contribute, up to the maximum set by your employer or the IRS. Contributions are used to pay certain dependent care and medical expenses.

The most common types of Flexible Spending Accounts include:

- Dependent Care Account (DCA): allows reimbursement of dependent care expenses incurred by eligible dependents. To qualify, you and your spouse (if applicable) must be employed full time, or your spouse must be a full-time student.

- Medical Spending Account (MSA): allows reimbursement of qualifying out-of-pocket medical expenses. For a list of eligible MSA expenses, please consult our Medical FSA and HSA Eligibility List.

- Limited Medical Spending Account (LMSA): coordinates with a qualified high deductible health plan (HDHP) and Health Savings Account (HSA). Limited FSA only allows reimbursement for preventative care, vision and dental expenses.

Please check with your employer to see what plans are offered.

For more information concerning Flexible Spending Accounts please refer to our Flexible Benefits Employee Guide.

If you have any questions, please contact Participant Services at 866-451-3399 or via email at customerservice@discoverybenefits.com.

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