Flexible Spending Accounts
If you’re an employee who works for an Executive branch agency or an agency that has adopted the Federal Flexible Benefits Plan (“FedFlex”), you can elect to participate in the Federal Flexible Spending Account Program (FSAFEDS).
FSAFEDS allows you to save money for health care expenses with a Health Care or Limited Expense Health Care FSA. Think of it as a savings account that helps you pay for items that typically aren’t covered by your FEHB Plan, the Federal Employees Dental and Vision Insurance Program, or other health insurance coverage.
FSAFEDS also offers an account for families with young children or elder care expenses – the Dependent Care FSA. This account allows you to set aside money to pay for your day care expenses.
The minimum election for all accounts is just $100 and carryover has been adopted for health care and limited expense health care FSAs.
www.FSAFEDS.com to enroll.
How do I SAVE money?
The money contributed to your FSAFEDS account is set aside before taxes are deducted, so in most cases you save about 30% on your Federal taxes. The average tax savings for a person earning $50,000 who contributes $2,000 into an FSA account is approximately $600. That means you get $2,000 worth of health care purchasing power PLUS pay about $600 LESS in Federal taxes.