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Flexible Spending Accounts (FSA)
Flexible Spending Accounts (FSA) are a great way to use pre-tax dollars to pay for expenses
normally paid with after-tax dollars! The City offers three types of flexible spending accounts:
Account
Description
Maximum Election
Healthcare
Use pre-tax dollars to pay for eligible
medical, dental, vision, prescription and
over-the-counter costs
$2,400 per Plan Year
(election may only be made or modified
upon hire, during annual open enrollment or
due to a qualifying event)
Dependent
Care
Use pre-tax dollars to pay for eligible
childcare, after school care, day camp or
nursery school for children under age 13
(or mentally or physically incapable
dependents over age 13)
$5,000 per household per Plan Year
(election may only be made or modified
upon hire, during annual open enrollment or
due to a qualifying event)
Transit
Use pre-tax dollars to pay for public transit,
including train, subway, bus, vanpool,
parking and park-and-ride expenses.
Up to $255 per month for mass
transit or van pooling costs
(election may be made, modified or
discontinued any month during the year)
All of our Flexible Spending Accounts are administered by
Payflex .These accounts allow you to
redirect a portion of your salary on a pre-tax basis into reimbursement accounts, reducing your
taxable income. Pre-tax means the dollars you allocate toward these accounts are not subject
to Medicare tax, Federal income tax and, in most cases, state and local taxes. The money you
set aside may be used for qualified eligible expenses on a pre-tax basis.
At enrollment, you determine the amount of money to contribute to these accounts for the plan
year. The contributions are deducted pre-tax per pay period from your paycheck and deposited
into the FSA account(s). You request reimbursement of qualified expenses as you incur the
expenses from your FSA account(s).