A Flexible Spending Account (Section 125) (FSA) provides a way for you to designate pre-tax dollars to pay for certain health and dependent care expenses. This is done through money which is deducted on a pre-tax basis from your check each pay period throughout the year and placed in your FSA account. Each time you incur an eligible expense, you can either use the provided debit card to pay for the expense or file a claim for reimbursement from this account.
All regular full-time and regular part-time faculty and staff are eligible to participate in a health and/or dependent care FSA to pay for certain health and dependent care expenses while reducing federal income and social security taxes. The use of the accounts is voluntary and is subject to IRS regulations.
Each year during open enrollment, you must decide whether, and how much, to contribute to one or both accounts for the upcoming year.