Flexible Spending Accounts Questions and Responses #1 (168KB - dbm maryland 2025

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Healthcare FSA - Use this account to pay for eligible medical, dental and vision expenses for you and your eligible dependents. Examples of eligible expenses include co-pays/deductibles, braces, eyeglasses, prescriptions and over-the-counter (OTC) medicines.
The difference between a Health Care FSA and a Dependent Care FSA is that the Health Care FSA is for eligible health care expenses for you and your eligible dependents, and the Dependent Care FSA is for expenses related to the care of a dependent child or adult (for example, day care). The two are NOT interchangeable.
While flexible spending accounts can save you money, they come with some drawbacks: Use-It-Or-Lose-It Rule: Unused FSA funds are forfeited unless your employer offers a grace period or carryover option.
An FSA must be funded exclusively through employer contributions or employee pre-tax contributions.
Types Of Flexible Spending Accounts Type of FSAHelps Pay: Health Care FSA (HCFSA) Any eligible medical costs, like co-payments or prescriptions Limited Expense Health Care Account FSA (LEX HCFSA) Any eligible dental and vision expenses Dependent Care FSA (DCFSA) Any child or adult dependent care expenses
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If you leave your company, try to use your FSA funds before you go because you dont have to pay the company back for the difference between what you spent and what you paid in, says Erik O. Klumpp, CFP, founder, and president of Chessie Advisors, LLC.
Its an account you elect to set aside pre-tax dollars to pay for certain health care expenses. Unlike a general-purpose health FSA, however, funds in a limited-purpose health FSA can only be used to pay for qualifying dental, vision and orthodontia expenses.

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