How does the Federal FSA work?

A Flexible Spending Account (also known as a flexible spending arrangement) is a special account you put money into that you use to pay for certain out-of-pocket health care costs. You don’t pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside.

How to get a FSA?

Participants must actively enroll each Open Season if they wish to have a flexible spending account in the next year. To enroll, visit the FSAFEDS website or call 1-877-FSAFEDS (372-3337). TTY 1-800-952-0450.

What is a Lphcra?

The Limited Purpose HCRA (LPHCRA) lets you set aside part of your paycheck on a pre-tax basis that you can then use to pay certain dental and vision care expenses you, your spouse, and your dependents incur throughout the year.

How do I get cash from my FSA card?

Unfortunately, FSA cards cannot be used to withdraw FSA funds from an ATM. These cards can only be used directly on qualifying medical products and services. This comes from the fact that FSA funds are pre-tax and cash cannot be easily monitored for eligible purchases.

What can I use an Lpfsa for?

eligible vision and dental expenses
The LPFSA is used to pay for eligible vision and dental expenses that are not covered by your insurance. It can also be used to pay for eligible post-deductible medical expenses. Pre-tax contributions reduce your taxable income.

Can I buy food with my FSA card?

Flexible Spending Account for qualified medical expenses. That means items such as groceries and clothing are unfortunately not FSA eligible… The IRS specifically defines which expenses would qualify for FSA reimbursement.

Is FSA a good idea?

If you have any ongoing or expected medical needs you might have to pay for in the upcoming year, an FSA is a great use of your money. The funds can also be used for over-the-counter items such as allergy and sinus drugs, first-aid supplies, digestive health products and home COVID-19 tests.