Flexible Spending Accounts ( FSAs )
Administered by APA Benefits
You can save money on your healthcare and / or dependent day care expenses with an FSA . You set aside funds each pay period on a pretax basis and use them tax-free for qualified expenses . You pay no federal income or Social Security taxes on your contributions to an FSA . ( That ’ s where the savings comes in .) Your FSA contributions are deducted from your paycheck before taxes are withheld , so you save on income taxes and have more disposable income .
Healthcare Spending Limit $ 3,200 Dependent Care Spending Limit $ 5,000
APA Benefits is the administrator of two individual Flexible Spending Accounts — one for healthcare expenses and one for dependent childcare and elder care expenses . You can enroll in one or both FSAs . You use each account separately , but they work similarly .
Here ’ s How an FSA Works
1 . You decide the annual amount ( up to $ 3,200 for healthcare spending and $ 5,000 dependent care ) you want to contribute to either or both FSAs based on your expected healthcare and / or dependent childcare / elder care expenses .
2 . Your contributions are deducted from each paycheck before income and Social Security taxes , and deposited into your FSA .
3 . You can pay with the Healthcare FSA debit card for eligible healthcare expenses . For dependent care , you pay for eligible expenses when incurred , and then submit a reimbursement claim form or file the claim online .
4 . You are reimbursed from your FSA . So , you actually pay your expenses with tax-free dollars .
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