By putting money into a Flexible Spending Account (FSA), you can pay certain expenses on a tax-free basis and decrease your total taxable income. You do have to calculate carefully the amount you expect to use during the year, so you don't lose money. The amount you contribute for the year is divided into equal amounts each paycheck throughout the year and deposited into your account.

We offer [1, 2, or 3] FSAs:

Healthcare FSA: Annual maximum for 2023 is $3,050. Funds can be used for any IRS-qualified medical expenses during the year. You must use your funds in 2023 or you forfeit them[, although we have adopted a carryover to the following year of up to $610.] [We have a grace period, so you can still use your FSA for expenses you incur until March 15 of the next year, but after that, any unspent money in your account is forfeited.]

Limited-purpose FSA: Annual maximum for 2023 is $3,050. This works the same as a Healthcare FSA, except the money can only be used to pay for qualified dental and vision expenses.

Dependent Care FSA: Annual maximum is $5,000 (or $2,500 if married and filing a separate tax return). Funds can be used to pay qualifying expenses for care of a dependent. These expenses typically cover children under age 13, such as for day care, but also apply to care for older dependents incapable of self-care, including dependent elder care.

Eligible Medical Expenses: For a list of eligible expenses for HSA, HRA or health FSA, go to irs.gov/publications/p502.