Stretch your dollars next year; Enroll Nov. 5 - 30 in a flexible spending account (FSA)

Oct. 11, 2007 - Putting money in a Flexible Spending Account (FSA) to pay health care expenses or to pay for childcare or other dependent care expenses is a smart way to save money each year.

An FSA allows state employees to set aside pretax dollars to pay for certain health care and dependent care expenses.

Enrollees choose how much they want to put into the account each year, a move that can create significant savings particularly for recurring expenses such as prescriptions, health care supplies, glasses, day care, etc.

How it works Because the money set aside in an FSA is not subject to federal taxation, users make the funds, in effect, go 15- 30 percent farther (depending on the person’s tax bracket) when used on eligible expenses.

State employees are permitted to establish two types of FSA, one for health-related expenses and one for dependent-care expenses.

Sign up Nov. 5-30 Open enrollment for state employee FSAs occurs Nov. 5-Nov. 30, 2007 for calendar year 2008. Even if an employee is currently enrolled, he or she must re-enroll during this period.

There is no minimum amount for either type of FSA, but users must declare during enrollment how much of their annual pay they want to be diverted into their accounts.

Although contributions for either account are typically made from each paycheck and spread over a full year, the entire declare amount is available to users beginning Jan. 1, 2008.

Employees can opt to use a special debit card for their eligible health care expenses.

Questions about Flexible Spending Accounts?

Contact Fringe Benefits Management Company Customer Service at 1-800-342-8017, Monday - Friday from 7 a.m. to 10 p.m. ET. For Automated Services (24 hours a day), call 1-800-865-FBMC (3262) or browse www.myFBMC.com.

You may also call the Department of Administrative Services Customer Service at 1-800-409-1205, or browse www.ohio.gov/employeebenefits.

See Related

In Charge of Your Benefits, a DAS Benefits Administration Services newsletter (PDF)

Flexible Spending Accounts Brochure and Enrollment Form (PDF)

Flexible Benefits Plan- 2008 Reference Guide (PDF) Coming Soon!

Website of FBMC

Website of Ohio DAS - Benefits Administrative Services Offices