A Flexible Spending Account (FSA) is an optional benefit available to employees. It is effective the first day of the month after the employee finishes 31 days of service. It offers tax savings by deducting pre-tax income from your paycheck and placing it in an account. This account can be used to pay for or reimburse you for eligible medical and dependent care expenses. The employee determines the amount per paycheck via a Salary Reduction Agreement, submitted to HR. The plan has two components:
- Dependent Day Care Expenses: This account is used to pay for certain dependent day care expenses with pre-tax dollars. The IRS Publication 503 lists eligible Child & Dependent Care Expenses.
- Health Care Expenses: This account is used to pay for medical expenses with pre-tax dollars that are deducted from your paycheck. The IRS Publication 502 lists eligible Medical & Dental Expenses.
An IRS “use it or lose it” regulation requires that any money left in your account after the grace period must be forfeited. The grace period is from January 1st through March 15th of each year. TASC must receive claims by March 31st each year to be considered for reimbursement under the prior Plan Year. You cannot carry over an unused balance from one year to the next. You cannot transfer funds between your Health Care and Dependent Day Care Accounts.
This program is administered by TASC. Visit the TASC Website and login to view your account balance, request a reimbursement, or download a request for reimbursement form. For a more detailed explanation of the benefit, you can review the Summary Plan Description for Flexible Benefits. If you have questions, contact Lynn Lambert (972.744.4009).