Tax Saving Accounts Health & Dependent Care
Tax Saving Accounts allow you to reduce your taxable income by setting aside pre-tax dollars to pay for out-of pocket health and dependent care expenses for you and your family.
Clarity is the administrator of Fello’s Flexible Spending Accounts.
Healthcare FSA
A healthcare FSA allows you to budget and save for qualified medical expenses incurred over the course of your upcoming plan year. It is a great savings tool for you and your family. You can elect up to $3,050 to receive for reimbursement for out-of-pocket healthcare expenses related to medical, dental or vision care. The amount elected will be available the first day of your plan year. These medical, dental, vision, or other healthcare related expenses cannot be eligible for reimbursement through any insurance or other total rewards program. Your FSA election is meant for budgeted expenses. You are unable to change your FSA election during the plan year unless you experience a qualifying event. Any unused funds at the end of the plan year will be forfeited except for up to $610 which may be carried over into the next plan year.
Healthcare FSA Eligible Expenses
- Ambulance
- Artificial limbs
- Birth control
- Braces
- Chiropractor
- Contact lenses
- Crutches
- Dental fees (not cosmetic)
- Diagnostics fees
- Eyeglasses
- Eye exams
- Hospital services
- Immunizations
- Insulin
- Laboratory fees
- Medical services
- Nursing Services
- Prescription drugs
- Psychiatric care
- Psychologist visits
- Transplants (organ)
- Wheelchair
- X-ray
This list is not exhaustive. Some of these expenses may require documentation of medical necessity.
Dependent Care FSA
A Dependent Care FSA is a simple way to save money on care for your dependents. It allows you to set aside pre-tax dollars to pay for day care
expenses. The annual IRS limit for this type of account is $5,000 per household. The amount you elect is available as each payroll deposit occurs
throughout the plan year. Expenses incurred when there aren’t enough funds in the account can be reimbursed at a later date. Eligible dependents for
this plan include children under the age of 13 and a disabled spouse or disabled dependent(s) of any age.
Dependent Care Eligible Expenses
- Adult daycare center
- Before and after school care
- Au pair or nanny fees
- Babysitting (work-related)
- Custodial elder care
- Nursery school
- Preschool
- Summer day camp
This list is not exhaustive. Some of these expenses may require documentation of medical necessity.
Please retain copies of all receipts, provider statements, and Explanation of Benefits.