Flexible Spending Accounts
Flexible Spending Accounts (FSAs) allow you to set aside tax-free dollars to pay for a wide variety of health care and dependent care expenses. Because the money you put into your FSA is not taxed, you’ll save just by paying the same bills you’d pay otherwise for certain types of health and dependent care. How much you save depends on your federal income tax bracket. For example, if you are in the 28% tax bracket, you might save as much as $280 on taxes for every $1,000 you set aside in an FSA.
| FAST FACTS about Flexible Spending Accounts (FSAs) | |
|---|---|
| Purpose | Allows you to reimburse yourself with tax-free dollars you set aside for health and dependent care. |
| Types | Two types of FSAs — health care and dependent care. You can set up one or both. |
| Eligibility | Any Metro employee who is eligible for other Metro benefits can set up one or both types of FSAs. |
| Election | Not automatic. FSAs must be elected annually. |