Flexible Spending Accounts feature:
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IRS approved reimbursement of eligible expenses tax-free
- Savings on Income and Social Security taxes
Under current federal tax law, unless the person qualifies as a dependent as defined by the IRS, expenses for that dependent cannot be claimed. Therefore, expenses for domestic partners, dependents of a domestic partner as well as Over Age Dependents age 26-30 cannot be reimbursed under a spending account.
"Use It or Lose It" Rule
FSA accounts are subject to the IRS “use or lose” rule. Unreimbursed amounts left in either Account cannot be returned to you. Claims must be incurred prior to the end of the current year and submitted for reimbusement to the provider by the end of the following January. Under IRS regulations, unclaimed amounts are forfeited. For this reason, we encourage you to be conservative in your estimates and only consider expenses you know you will incur in 2026.
Employees enrolled in a County CDH health plan: If you enroll in the Health Care FSA, all medical, prescription, dental and vision expenses for copays, co-insurance and deductibles will automatically be deducted from your Health Care FSA first. After the FSA account is exhausted, medical, prescription, dental and vision expenses can be reimbursed from your HRA.
Available Types of FSAs
Health expenses not covered by your insurance plan may be eligible for reimbursement using your FSA Health Care Account, including but not limited to:
| Dependent care expenses, whether for a child or an elder, include any expenses that allow you to work, such as:
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- Eligible health, prescription, dental and vision copays, deductible, and/or co-insurance
| - Daycare services (child under 13, or adult)
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- Limited over-the-counter (OTC) drugs
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- Eyeglasses and contacts
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