HRA Eligible Expenses
Flexible Spending Accounts (FSAs) are part of an IRS regulated, employer-sponsored benefit plan that allows participants to voluntarily convert part of their compensation into tax-free benefits. Contributions made through FSAs are normally free of federal, state and Social Security taxes.
Benefit Categories
In addition to employee tax savings, FSAs provide employer tax savings by reducing the FICA taxes from matching payroll contributions. Both employers and employees agree that FSAs are an excellent complement to any employee benefit package. FSAs provide for a wide variety of benefits.
The benefits most often represented in the plan are any combination of the following:
Healthcare Flexible Spending Account - use pre-tax dollars to pay for eligible out-of-pocket medical, dental and vision expenses.
Dependent Care Flexible Spending Account - use pre-tax dollars to pay for eligible dependent daycare expenses.
Limited Healthcare Flexible Spending Account - use pre-tax dollars to pay for eligible out-of-pocket dental, vision and preventative care expenses only. Under the Limited Healthcare FSA, eligible expenses are limited to so that enrollment is compatible with eligibility rules related to Health Savings Accounts.
Debit Card Option - information on the debit card option, if offered by your employer in conjunction with your plan.
