Flexible Spending Accounts (FSA)

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.

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*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.

This page is not intended for use in AZ