A Flexible Spending Account lets you set aside money—before it's taxed—through payroll deductions. The money can be used for eligible healthcare and dependent day care expenses you and your family expect to have over the next year.

*PLEASE NOTE: If any information described on this site differs from the plan documents, the plan documents will prevail.

The main benefit of using an FSA is that you reduce your taxable income, which means you have more money to spend. The catch is "use it or lose it"-- you have to use the money in your account by the end of our grace period which extends our plan year by 2.5 months. Although our plan year ends on December 31st of each year, the grace period allows you to incur claims until March 15th of the following year. Otherwise, that money is lost, so plan carefully. You must re-enroll in this program each year.

Healthcare FSA Account 

This plan allows you to pay for eligible out-of-pocket healthcare expenses with pre-tax dollars. Eligible expenses include medical, dental, or vision costs including plan deductibles, copays, coinsurance amounts, and other non-covered healthcare costs for you and your tax dependents. You may access your entire annual election from the first day of the plan year and you can set aside up to $3,050 this year. The annual IRS limit will increase to $3,200 beginning on January 1, 2025.

 You must submit an itemized bill, fill out a form and then you’ll be reimbursed at least once a month (usually within two weeks) of submittal. Examples of eligible expenses include copays and deductibles for doctor visits, prescriptions, prescription eyeglasses and contacts, laser correction surgery, contact lens solution, dental care, hearing aids, laboratory fees and psychologist and chiropractic visits. If you are considering budgeting for an expensive procedure like LASIK, major dental work or orthodontia, it is recommended to have an evaluation and receive your cost estimates before you set the money aside. Common ineligible expenses include premiums for other health plans, cosmetic procedures, and fitness programs. Due to changes in federal law, over the counter medications will no longer be eligible expenses.

Below is an example for a single employee with zero exemptions earning $60,000 per year who saved approximately $419.50 in taxes by creating a $1,000 healthcare flexible spending account.

Employee Tax Savings Without FSA With FSA
Total Gross Annual Wages $60,000.00 $60,000.00
Healthcare FSA Expenses --- $1,000.00
Dependent Care FSA Expenses --- ---
          Taxable Annual Wages $60,000.00 $59,000.00
Income Taxes    
   Social Security & Medicare $4,590.00 $4,513.50
   Federal Income Taxes $9,615.00 $9,365.00
   Dependent Care Credit --- ---
   Earned Income Credit --- ---
   State Income Taxes $3,224.83 $3,131.83
          Total Taxes $17,429.83 $17,010.33
Healthcare Expenses $1,000 ---
Dependent Care Expenses --- ---
After Tax Income $41,570.17 $41,989.67
          Annual Tax Savings --- $419.50

Dependent Care FSA Account

This plan allows you to pay for eligible out-of-pocket dependent care expenses with pre-tax dollars. Eligible expenses may include daycare centers, in-home child care, and before or after school care for your dependent children under age 13. Other individuals may qualify if they are considered your tax dependent and are incapable of self-care. It is important to note that you can access money only after it is placed into your dependent care FSA account. All caregivers must have a tax ID or Social Security number, which must be included on your federal tax return. If you use the dependent care reimbursement account, the IRS will not allow you to claim a dependent care credit for reimbursed expenses. Consult your tax advisor to determine whether you should enroll in this plan. You can set aside up to $5,000 per household for eligible dependent care expenses for the year.

This account enables you to pay for child and elder care costs incurred so that you and your spouse may work or attend school full-time.  Single employees can also use the account.  An eligible dependent is someone for whom you can claim expenses on Federal Income Tax Form 2441 “Credit for Child and Dependent Care Expenses.” Children must be under age 13.  Other dependents must be physically or mentally unable to care for themselves.  Examples of qualifying dependent care arrangements include care in or outside your home, preschool tuition, before and after school care, and many summer day camps.  Employees are advised to contact TRI-AD to make sure the dependent care expenses qualify and appropriate documentation is provided for reimbursement.

Below is an example for a married employee with two exemptions and a family income of $100,000 per year who saved approximately $1,917.00 in taxes by creating $1,000 healthcare and $5,000 dependent care flexible spending accounts.

Employee Tax Savings Without FSA With FSA
Total Gross Annual Wages $100,000.00 $100,000.00
Healthcare FSA Expenses --- $1,000.00
Dependent Care FSA Expenses --- $5,000.00
          Taxable Annual Wages $100,000.00 $94,000.00
Income Taxes    
   Social Security & Medicare $7,650.00 $7,191.00
   Federal Income Taxes $13,430.00 $11,930.00
   Dependent Care Credit ($600.00) ---
   Earned Income Credit --- ---
   State Income Taxes $4,324.65 $3,766.65
          Total Taxes $24,804.65 $22,887.65
Healthcare Expenses $1,000.00 ---
Dependent Care Expenses $5,000.00 ---
After Tax Income $69,195.35 $71,112.35
          Annual Tax Savings --- $1,917.00

Important Considerations

  • Expenses must be incurred between January 1st of each year and March 15th of the following year and submitted for reimbursement no later than March 31st.
  • Elections cannot be changed during the plan year, unless you have a qualified change in family status (and the election change must be consistent with the event).
  • Unused amounts will be lost at the end of the grace period, so it is very important that you plan carefully before making your election.
  • FSA funds can be used for you, your spouse, and your tax dependents only.
  • You can obtain reimbursement for eligible expenses incurred by your spouse or tax dependent children, even if they are not covered on the South Orange County Community College District health plan.
  • You cannot obtain reimbursement for eligible expenses for a domestic partner or their children, unless they qualify as your tax dependents (Important: questions about the tax status of your dependents should be addressed with your tax advisor).
  • Keep your receipts. In most cases, you'll need to provide proof that your expenses were considered eligible for IRS purposes.

Navia Benefits Debit Card

The first year you enroll in FSA, you will a debit card. If you would like additional cards, you can request them from Navia. The cards are good for three years and are reloaded annually with your new election amount. Your Navia Benefits Card cannot be used at dependent care facilities. Even though the front of your Navia Benefits Card will state “Debit,” it should be used as a credit card. The card does not have a PIN so you must select credit when making a purchase. You cannot get cash back with the card. If debit is used, your purchase will be declined. Claim submission instructions are available on Navia’s website at naviabenefits.com. Log in credentials will be sent to you when you enroll so you can view your account information.

Navia Contact Information

Forms

Making FSA Plan Changes

To make changes to your FSA plan, including address or name changes, etc.

  1. Complete the following form: FSA Change Form
  2. Submit it to the Employee Benefits department
  3. If making a change due to a qualifying event such as marriage, divorce, birth of a child, etc., please make sure you submit your change form within 30 days of the qualifying event date