Flexible Spending Accounts (FSAs) are offered by your employer to help you pay for qualified medical and dependent care expenses. The money you put into your FSA is taken out of your paycheck before taxes, reducing your taxable income.
If you have an HSA, then you may also be able to enroll in an LPFSA. You can use your LPFSA to help pay for dental and vision expenses instead of dipping into your HSA. This allows you to maximize the long-term savings benefits of your HSA.
Dependent Care FSAs
These FSAs help you save money on care for the people who depend on you the most, like:
Your qualifying child under age 13 who lives with you
Spouses, older children, or relatives who are physically or mentally unable to care for themselves and live with you (at any age)
Dependent Care FSAs use pre-tax dollars to help pay for:
Money in any FSA usually needs to be used in your current plan year or you will lose those funds. Some plans may allow money to carry over or give you extra time to submit expenses. Check with your employer about the details of your FSA.