Flexible spending accounts are another way for you to save money by reducing your tax burden. It is important to stay compliant when leveraging these different savings vehicles. You can enroll in the flexible spending accounts even if you are not enrolled in the District’s group medical plan.
Dependent Day Care Account
You can set side up to $5,000 ($2,500 if married, filing separately) each year to pay for qualified dependent day care expenses so you and your spouse can work or attend school full-time. Expenses are qualified if used for a child under 13 or for the care of a physically or mentally disabled parent, child or other relative of any age whom you claim as a dependent for federal tax purposes. If you are spending money on dependent care, consider this account. A dependent day care account does not impact your eligibility for a health savings account.
Health Care Flexible Spending Account
This account allows you to set aside up to $2,750 per year to pay for common expenses such as plan deductibles, prescription drugs, dental expenses and prescription eyeglasses and contacts. If you are participating in a Health Savings Account (HSA), you need to make sure to enroll in the right type of account so you stay compliant.
Traditional: If you are NOT participating in a HSA (here or through your spouse), you can set aside money for medical, dental and vision expenses via a Traditional Health Care Flex Account.
Limited: If you are participating in a HSA, you can set-aside money for dental and vision expenses only
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