Flex spending account (FSA)
Eligibility
All regular full time and regular part time employees who work at least half time annually become eligible on the first day of the month following date of hire or date of transfer into a benefits eligible position. The flexible spending account plans can also be used by spouses and dependents but not domestic partners (per IRS regulation).
Description
FSAs are an excellent way to lower your tax bill by setting aside pre-tax dollars to pay for certain unreimbursed health care and dependent care expenses. Each year during benefits open enrollment, you will elect the amount you wish to set aside from each pay check.
Health flexible spending account: Use pre-tax dollars to pay for your out-of-pocket medical expenses, including deductibles, co-pays, prescriptions, eye exams, vision hardware and many other eligible expenses not covered by health or dental insurance. These expenses may be your own or your spouse's or dependents'. In 2024 you may currently set aside up to $3,200. Unused dollars in the amount of $640 or less will carry over into 2025 as long as you meet the eligibility criteria.
Dependent care flexible spending account: Use pre-tax dollars to pay daycare expenses for children under age 12 or for adult dependents unable to care for themselves. The care must be necessary for you and your spouse to remain employed and may be provided through live-in care, baby sitters, and licensed day care centers.
The maximum you can elect each year is equal to the smallest of the following:
- $5,000-per couple if married and filing federal taxes jointly, or for a single parent;
- $2,600-per couple if married and filing a separate federal tax return; or,
- your spouse's earned income.
Unlike health FSA's, you may only use funds in your dependent care FSA that you have already contributed from your pay check.
Using your FSA
You will pay for health reimbursement account expenses with your FSA debit card or by paying out of pocket and then submitting a reimbursement request online.
If you have a dependent care account, you will submit for reimbursement through the Allegiance website or use this form to set up automatic reimbursements each month by having your day care provider sign to confirm enrollment and cost.
All employees are encouraged to set up an online account with Allegiance to manage their FSA. On this site you may check your balance, submit a request for reimbursement and set up direct deposit.
According to IRS regulations, FSAs are use-or-lose. You should be very careful in planning the amount that you set aside each year. In 2024 you may roll-over up to $640 of your unused health FSA into the 2025 plan year. Unused funds in excess of $640 will be forfeited at the end of each year. Dependent care FSA contributions are 100% use-or-lose and no amount may be rolled over to the next year.
Additional information
2024 FSA plan year info
Pandemic releaf FSA carryover information
Allegiance FSA website to set up direct deposit, submit a claim, view your balance
Informational flyer for more information on the benefits of flexible spending accounts
Allegiance Mobile App!
Summary of eligible healthcare expenses
Summary of eligible over the counter expenses (new as of April 7, 2020)
Plan Documents
Summary plan description
Ammendment to plan made on May 12, 2020
Amendment to plan made on April 1, 2021
Plan document