Time Running Out to Spend Flex Dollars

Use it or lose it. That’s the rule when it comes to flexible spending accounts (FSA), as set by the IRS.

Whether you stock up on Band Aids, undergo acupuncture or buy a new pair of eyeglasses, if you’re one of the thousands of County employees who have a flexible spending account, your deadline to spend the dollars is Dec. 31!

For a complete list of eligible purchases, check out this list compiled by County vendor ASI Flex. Employees can also check their account balance through ASI Flex’s website.

What are flexible spending accounts and how do they work, anyway? The idea is that employees can save money by paying for qualified medical, dental and vision expenses using tax-free money out of these accounts.

“So you’re giving yourself a break on the income tax,” said Lyn Howarth, a senior human resources analyst in the Department of Human Resources’ Benefits Division.

Employees can stock the accounts with their own money or the County can place excess flex credits in them, earned when employees waive their health insurance, Howarth said.

Two types of FSAs exist: health care flexible spending accounts and dependent day care flexible spending accounts. Employees can contribute up to $2,500 in out-of-pocket money or up to $5,000 in excess flex credits in the health care flexible spending accounts, and up to $5,000 in either out-of-pocket or excess flex credits in the dependent day care accounts. There are 6,500 participants in each type of account, Howarth said.

Money that isn’t spent by year’s end goes toward such County programs as free employee flu shots and Employee Wellness offerings.

For more information on DHR’s Benefits Division, visit their Web page on InSite.