Flexible Spending Account

Important News regarding the New Grace Period

Great news! We are pleased to announce that the Board of Supervisors recently approved enhancements to the Cafeteria plan documents for the Health Care and Dependent Care Flexible Spending Accounts (FSA) that will benefit all participants - - that means you! These changes will implement a full 2 ½ month “temporary grace period”, immediately following the end of each plan year. During this time you may continue to incur eligible expenses. Also the deadline for filing claims has been extended to April 15 for active employees.

The grace period begins January 1 and ends on March 15. During the grace period, you may incur additional expenses and submit claims for these expenses by April 15th. Funds will be automatically deducted from any remaining dollars (up to $5,000) in your previous year's Medical or Dependent Care Flexible Spending (FSA) accounts.

One of the best ways to reduce your out-of-pocket expenses is to take advantage of the County's Flexible Spending Account (FSA) program. If you already enjoy the tax advantages of an FSA, don't forget to re-enroll every year during annual enrollment. You must re-enroll every year to continue participating in FSAs.

Flexible Spending Account Overview

Through FSAs, you can pay for certain health and dependent care expenses with before tax (tax-free) dollars. There are two types of FSA plans:

Health Care – This plan allows you to pay up to $15,000 in healthcare expenses (for you and your dependents) that aren’t covered by insurance, with tax-free dollars (such as deductibles and co-payments and services not fully paid by your insurance coverage).
Dependent Care – This plan allows you to pay up to $5,000 with tax-free dollars to someone who is caring for your dependents (children or incapacitated adults) so you can work.

These accounts allow you to pay for planned expenses with before-tax dollars. For example, if you earn $40,000 and put $2,000 into an FSA (either health care or dependent care), you will reduce the income you pay taxes on to $38,000.

When you use money out of your paycheck to purchase something, you are paying for that item with after-tax dollars. You can make your pay check go farther if you contribute to an FSA and use tax-free FSA money to reimburse yourself for eligible healthcare and dependent care expenses.