A Flexible Spending Account (FSA) is a special account you put money into that you can use to pay for certain out-of-pocket health care costs. FSAs help you save money by providing a way to pay for certain everyday health or dependent care expenses on a tax -free basis. Anyone who has predictable out-of-pocket medical, dental, vision or dependent care expenses should consider an FSA.

• The Health Care FSA lets you pay for eligible medical, dental and vision care expenses such as deductibles, copays, coinsurance amounts, prescription drugs and other charges not covered or fully reimbursed under a medical, dental or vision plan. You may contribute between $250 and $3,050 to your Health Care FSA each year. The Health Care FSA offers you access to the full amount of your annual elected amount on the first day of the plan year. If you have a Health Savings Account (HSA), you cannot have a Health Care FSA.
  
  
• The Limited Purpose Health Care FSA is for those enrolled in the Century Preferred HSA Plan. You may contribute between $250 and $3,050 to your Limited Purpose FSA each year and the funds can only be used to pay eligible dental and vision expenses.
  
  
• The Dependent Care FSA allows you to pay for qualified expenses incurred for custodial dependents (children under age 13) or elder care expenses you incur while you and your spouse work or search for work. You may contribute between $250 and $5,000 per household to your Dependent Care FSA each plan year ($2,500 if married but filing separate tax returns). Under IRS guidelines, you can only be reimbursed for dependent care that has already taken place and up to the amount you have already contributed to your Dependent Care FSA. Dependent Care FSA funds are available as they are deducted from your paycheck.
  

The Health Care FSA, Limited Purpose FSA and the Dependent Care FSA funds are “use it or lose it”, meaning any funds that are not used for eligible expenses within the plan year will be lost so it’s important to estimate how much you expect to spend on eligible expenses during the plan year before you decide how much to contribute to your FSAs.