Flexible Spending (FSA)
Flexible Spending Accounts (FSA) allow you to designate a set amount of money and have it taken out of each paycheck and deposited into an account to be used for specific expenses. Federal Income and Social Security taxes will not be withheld from your contributions, making your taxable income lower. You may enroll in the Healthcare FSA for medical, dental, vision, pharmacy, and other related expenses and / or the Dependent Care FSA, primarily for dependent day care expenses. Use the money in these accounts to pay for eligible out-of-pocket healthcare (medical, dental, vision expenses) and dependent care (day care) expenses for yourself, your spouse, your children or for any person you claim as a dependent on your federal income tax return.
Over-the-counter (OTC) drugs are available without requiring a prescription. Some examples of allowed OTC items are:
- Cough medicines
- Cold medicines
- Allergy medicines
- Pain relievers, such as acetaminophen
Healthcare FSAs are limited to $3,200 per year for 2024 per employer. It you're married, your spouse can contribute up to the max their employer allows as well.
For Dependent Care FSAs, you may contribute up to $5,000 per year if you are married and filing a joint return, or if you are a single parent. If you are married and filing separately, you may contribute up to $2,500 per year per parent.
Remember to carefully estimate your plan year expenses when making an election. You must use all of the funds in your account by the end of the plan year or the money is forfeited per the IRS regulations.
The debit card provides a convenient way to pay for eligible expenses, thus eliminating the need to pay out of pocket, file claims, and be reimbursed. TASC, the FSA plan administrator, may request receipt documentation for your debit card transactions. Remember to retain all receipts, per IRS guidelines. Not all providers accept the FSA debit card, and for those providers who do not, you will pay at the time of transaction and complete a claim form to request reimbursement.
The IRS requires that any unused money in your account at the end of the plan year must be retained by your employer. Be sure to use the entire amount of your FSA balance in order to avoid forfeitures.
2024 Plan Year Maximums
- Healthcare FSA: $3,200
- Dependent Care FSA: $5,000
FSA plan participants will pay a monthly administration fee of $5.09, which will be a separate payroll deduction post-tax. There are no duplicate fees if you are enrolled in both the Healthcare and Dependent Care FSA.
Healthcare FSA
Claims must be incurred within 2 ½ months following the last day of the plan year (by March 15, 2024) in order to be eligible for reimbursement. All 2023 FSA claims must be submitted to the FSA administrator by April 30th, 2024 in order to be considered for reimbursement.
A list of eligible vs ineligible expenses is available on the Resources page.
Dependent Care FSA
If your spouse is not employed, your dependent care expenses are not eligible for reimbursement unless your spouse is a full-time student or is physically or mentally incapable of caring for himself / herself.
Eligible Dependent Care FSA expenses include before and after-school programs, licensed day care centers, nursery school or preschool, summer day camps, transportation to and from eligible care, an adult-day-care center, or elder care (in your own home or someone else’s). You can elect a Dependent Care FSA even if you have declined health coverage.
Eligible childcare providers can be individuals, such as a family member or friend. However, it's important to note that this category excludes individuals under the age of 19 who are related to you, including your own child or stepchild. Additionally, the caregiver cannot be someone whom you list as a dependent on your federal tax return.
To claim reimbursements for dependent care through this FSA, you must ensure that the service provider has either a federal tax ID number or a valid social security number. This documentation is essential to facilitate the reimbursement process.
Eligible Expenses Must Be for the Care of:
- A dependent child who is under age 13 and whom you claim as an exemption on your tax return
- A dependent child, elderly parent, or relative who is physically or mentally incapable of caring for himself or herself
How It Works
You will either use your debit card to pay for claims at the point-of-service, or submit a claim to the administrator for reimbursement.
Debit Card Purchases
You will receive a debit card for your FSA plan. This debit card may be used to pay for eligible medical care expenses. Using a debit card is a convenient way to pay for your FSA expenses as many health providers accept the debit card. When you use your debit card, the funds are pulled from your account and paid to the health provider directly. This eliminates the need for you to pay out-of-pocket and file a claim to be reimbursed.
Please remember to keep all FSA claim receipts, even if you use your debit card. Some debit card claims will require you to provide a receipt to the plan administrator. In the event the FSA administrator needs additional information from you, you will receive a communication requesting receipt(s).
Manual Claims
In the event your provider/vendor does not accept the debit card and you need to file a claim for reimbursement, the process is as follows:
- Make the medical or dependent care purchase.
- Pay for expense with cash, check or credit card. Keep the receipt.
- Go to www.tasconline.com, login to access your account, and click Request for Reimbursement Wizard.
- Follow the instructions to enter your request.
- Obtain/complete claim form (VeriFlex Coversheet). Attach Receipts and mail or fax to TASC.
MyBenefits and MyCash
TASC has enhanced technology to provide additional convenience and expedite your FSA claim reimbursements. If you are not registered for direct deposit, TASC provides your FSA claim
reimbursements directly onto your debit card. You will have a MyCash fund on your debit card for reimbursements of manual claims only. (If you use your debit card for all of your FSA claims,
you will not have MyCash funds on your card.)
You have two buckets of money on your debit card once you begin receiving manual reimbursements from your FSA plan.
- MyBenefits – This bucket is used for eligible healthcare and/or dependent care expenses.
- MyCash – This bucket of money may be used for any purpose of your choice. Again, this will only be for manual FSA claim reimbursements. When you receive claim reimbursements from your FSA plan if you are not registered for direct deposit, the funds are deposited into the MyCash account on your debit card. You have a few ways to retrieve your money from your MyCash account:
- Use it at an ATM (upon request of a PIN) to withdraw your money.
- Transfer money into your personal bank account.
- Use the card at vendors who accept Visa – for any purchases.
Online Account Management and Mobile Tools
TASC Online Account Management
As an FSA member, you also have the ability to manage various functions of your account online through MyTASC: Online Account Management. Some of the member capabilities include:
- Viewing current benefits, claims, and account balances
- Viewing payroll contributions
- Receiving e-mail and text notifications of balance information, reimbursement requests, and payments
- Submitting and viewing requests for reimbursements
TASC Mobile Tools
TASC Mobile offers a free mobile app and text messaging option for FSA participants to access your accounts from anywhere at any time. You will enjoy convenient mobile options to check balances, view transaction details, request a reimbursement, and submit documentation on the go.
TASC ID Number
When you enroll in the FSA plan, you will receive a Welcome Letter from TASC including your 12 Digit TASC ID. Please retain this ID number for future reference as it is needed to access your account. This number will also be populated on electronic manual claim forms to expedite the claims process. When you call Customer Service, please have your TASC ID Number handy to obtain account information.
