What’s a FSA?*
A FSA is a spending account provided by your employer that can be used to pay for different types of eligible expenses.
Cigna offers 3 different types of FSAs:
Covers eligible health care expenses for you and your covered dependents.
Covers eligible dental and vision expenses, and is usually only offered with a Health Savings Account (HSA).
Covers eligible expenses for dependents age 12 and under, and disabled dependents of any age.
How do FSAs work?
- Based on the type of FSA you have, figure out how much you may need for the eligible expenses for you and/or your covered dependents for the plan year. You can decide how much you want to contribute from each paycheck up to the yearly limit set by the IRS guidelines.
- You can withdraw money from the account throughout the year to reimburse yourself for the eligible expenses you’ve paid.
- Some plans include a debit card so you can easily pay from your FSA at the time of service. You can use your FSA debit card only to cover eligible expenses specified by your plan.
- FSAs can help you save money because you contribute to the account from your paycheck before federal taxes. This reduces your taxable income.**
- FSAs can be offered alone, or paired together with a HRA or HSA.
FSA Comparison Chart
Compare and learn about the similarities and differences among the three types of FSAs.*
| FSA | Health Care FSA | Limited Purpose FSA | Dependent Care FSA |
|---|---|---|---|
| Type of expenses it covers: | Covers eligible health care expenses such as:
|
A type of Health Care FSA that is limited to dental and vision expenses such as:
|
Covers eligible dependent care expenses such as:
|
| Who is eligible? | You and your IRS eligible dependents | You and your IRS eligible dependents |
Covered dependents age 12 and under Disabled dependents of any age who are unable to care for themselves |
| Does the balance carry over to the next plan year? |
Yes – you may be able to carry over up to $500 depending on your employer’s plan Or your employer may offer a 2.5 month grace period where you can use the FSA in the next calendar year |
Yes – you may be able to carry over up to $500 depending on your employer’s plan Or your employer may offer a 2.5 month grace period where you can use the FSA in the next calendar year |
No – you lose any dollars left in your Dependent Care FSA if receipts are not submitted by the date set by your employer You can withdraw money from the account throughout the year to reimburse yourself for the eligible expenses you’ve paid |
| Any special requirements? | FSA accounts are only offered through your employer |
Due to IRS regulations, a Limited Purpose FSA is the only type of FSA that can be offered with a HSA plan FSA accounts are only offered through your employer |
To be eligible, you (or both you and your partner) must be working, looking for work, or going to school |
*Plans vary, but this is how FSAs generally work. Please refer to your plan documents, including specific information on your Health Care FSA, or contact your employer for more information on what’s covered and not covered by your plan.
**Some cities and municipalities may impose income taxes on FSAs. For detailed information please contact your local department of taxation.
Group health plans are insured and/or administered by Cigna Health and Life Insurance Company or its affiliates. Plans contain exclusions and limitations and may not be available in all areas. For costs and details of coverage, review your plan documents.
.