Flexible Spending Account (HCFSA/LPFSA/DCFSA)

A Flexible Spending Account, or FSA is an account that allows you to reimburse yourself with pretax dollars for eligible out-of-pocket health care costs, dental/vision costs, and/or childcare costs associated with caring for a qualified dependent. Eligible employees are able to participate in the FSA even if they are not enrolled in the District health insurance plan.

The FSA plan year runs from September 1st through August 31st. Note that FSA elections do not automatically continue from year to year; you must actively enroll each year, during the open enrollment period. Claims incurred in the plan year may be submitted for reimbursement up to 90 days after the end of the plan year.

For the plan year 2023-24, a rollover provision allows employees to roll over up to $570 of unused FSA dollars into the next plan year and still contribute up to $3,050. Please plan your contributions carefully. Any money remaining in your account in excess of $570 at the end of the plan year will be forfeited. This is known as the “use it or lose it” rule and it is governed by IRS regulations. Dependent Care FSA does not allow any rollover dollars into the new plan year.

Dependent Care (DCFSA)

An employee may elect up to $5,000 per plan year (2023-24) for reimbursable dependent care expenses. If your spouse is also electing dependent care through their FSA, you may not exceed a combined total of $5,000 per tax year. A tax dependent is a child under the age of 13 whom you have custody of more than half the year, or a tax dependent that is physically or mentally incapable of self-care regardless of age and who resides with you more than half the year.

 

Health Care/Medical (HCFSA)

An employee may elect up to $3,050 per plan year (2023-24) for eligible medical, dental and vision expenses for you, your spouse and your dependents (including children to age 26). You may not participate in the Health Care/Medical FSA if you are enrolled in the Health Savings Account (HSA).

Limited Purpose (LPFSA)

An employee may elect up to $3,050 per plan year (2023-24) for eligible dental and vision expenses for you, your spouse and your dependents (including children to age 26). If you are enrolled in the District health plan, and therefore are eligible for an HSA, you are able to participate in the LPFSA for dental and vision expenses and the HSA, but not the HCFSA, as noted above.