Today, managing an FSA is easier than ever. Most accounts provide online benefits portals to handle every aspect of account management, offer FSA cards to cover qualified health expenses at the point of sale, and can cover thousands of eligible medical products and services. Plus, these accounts can have a real impact on your financial bottom line: a family making the median U.S. income ($59,000/year) that elects the full FSA contribution for 2021 ($2,750) will save nearly $1,000 in federal taxes each year.
If you’re interested in FSA enrollment or upping your FSA management game, FSAstore.com can help you every step of the way. Whether you need to shop our selection of more than 4,000 eligible products, look up a product/service eligibility or searching for the latest industry news, our resources have you covered.
Did you know there are different types of Flexible Spending Accounts? Most people are aware of a Health Care FSA (also known as “General Purpose” or “Wide Open” FSAs), but you might like to know about other types of FSAs.
Aside from Health Care FSAs, there is also a Dependent Care FSA. The Dependent Care FSA, or DCAP or DCA, allows employees to set aside tax-free money toward dependent care costs. These costs could be toward daycare, care for elderly or disabled tax dependents, or toward before and after school care, to name a few. In order to qualify for a Dependent Care FSA, you and your spouse must be employed, searching for work, or attending school full-time. You can contribute $5,000 per household or $2,500 if married, filing separately, for a Dependent Care FSA. Dependents include children up to age 13 or your tax-dependent spouse or qualifying child or relative who is incapable of self-care (mentally or physically).
A Limited Purpose FSA is a type of FSA that only covers certain expenses that typically include vision, dental, or OTC dental and vision products. The employer limits the available expenses. A Limited Purpose FSA is often designed to be compatible with a Health Savings Account.