Flexible Spending Accounts

A Flexible Spending Account (FSA) is a tax-free account you put money into to pay for certain out-of-pocket expenses.

Healthcare Flexible Spending Account

You can contribute up to $3,200 in 2024 for qualified medical expenses (deductibles, copays, coinsurance, menstrual products, PPE, over-the-counter medications, etc.) with pre-tax dollars, which reduces your taxable income and increases your take-home pay. You can even pay for eligible expenses with an FSA debit card at the same time you receive them — no waiting for reimbursement.

Limited Purpose Flexible Spending Account

A Limited Purpose Flexible Spending Account (LPFSA) works with a Health Savings Account (HSA) and allows for reimbursement of eligible dental and vision expenses. The contribution limit is $3,200 in 2024.

Dependent Care Flexible Spending Account

In addition to the Health Care FSA, you may opt to participate in the Dependent Care FSA — even if you don’t elect any other benefits. Set aside pre-tax funds into a Dependent Care FSA for expenses associated with caring for elderly or child dependents while you and your spouse work or attend school full time. Eligible dependents include children under 13 and a spouse or other individual who is physically or mentally incapable of self-care. The contribution limit is $5,000 in 2024.

Eligible expenses include:

• In-home babysitting services (not provided by a dependent)
• Care of a preschool child by a licensed nursery or day care provider
• Before- and after-school care
• Day camp
• In-house dependent day care

Due to federal regulations, expenses for your domestic partner and your domestic partner’s children may not be reimbursed under the FSA programs.

Note: The Dependent Care FSA is not to be used for medical expenses, nor is it the same as electing medical coverage for dependents.

Commuter Benefits

Commuter Benefits offer an FSA to help cover expenses such as parking, mass transit, and ridesharing services related to your job.

The Transit and Parking FSA benefit is similar to the pre-tax FSAs available for medical expenses and dependent care. Commuter Benefits do not have a “use it or lose it” penalty, as other flexible spending accounts may have, as long as you are employed. You may elect to set aside a certain amount of pre-tax salary during Open Enrollment or update anytime during the year. For 2024, an employee can designate up to:

• $315 per month for mass transit expenses
• $315 per month for parking expenses

Qualified Parking Expenses

Parking expenses that can be paid with pre-tax dollars generally include the cost of:

• Parking a vehicle in a facility that is near the employee’s place of work, or
• Parking at a location from where the employee commutes to work (e.g., train station parking)
• Mass transit passes including train, subway, bus, ferry, or vanpool

Separate reimbursement accounts are maintained for each category, and funds cannot be co-mingled or transferred between the transit and parking accounts. Employees have the ability to pay for parking and vanpool charges by using an FSA Benefit Card or submitting manual claims. All claims may be submitted for up to 90 days after employment ends.