It's a fact: we're all spending more on health care, dependent care and other everyday wellness needs than ever before. That's what makes the flexible spending account (FSA) program so valuable - it's an easy, convenient way to help stretch your health and dependent-care dollars.

Through your FSA, you set aside money from your pay before taxes are deducted. That money is still yours to spend, but no taxes are taken out of it - ever!

How does that add up? It depends on how much you spend on health-care and dependent-care expenses each year. But for every $100 set aside through the FSA, most people can save from $30 to $40 on their total payroll taxes including:

  • Federal income tax
  • FICA (Social Security) taxes
  • State income tax (in most states)

OneBeacon® offers both health care and dependent care spending accounts which is administered by FURTHER. You must use the funds or you will lose them, so it's important to estimate carefully.

Important Notes:

  1. FSA expenses must be incurred by December 31, as there is no grace period.
  2. You will have until March 31 of the following calendar year to submit your claims for reimbursement.
  3. If you do not use all your funds or terminate mid year you will lose any remaining funds (unless COBRA election) left in your FSA. COBRA is only available for health care spending accounts and on an after tax basis.
  4. The IRS maximum limit for a health care FSA is $2,650 and $5,000 for a dependent care FSA.

Want to know more about flexible spending accounts? Click on the following links for more information:

Health care spending account

Dependent care spending account