Flexible Spending Account (FSA)
FSA provides a tax-advantaged way to pay certain out-of-pocket health care expenses, and work-related dependent care expenses.  The plans allow you to pay your expenses with “pre-tax” dollars, which means that you get a tax deduction for these expenses before you ever file your tax return.  You don't pay Federal income or Social Security taxes on this money and, in most states, you don't pay state taxes either.

• FAQ's Frequently Asked Questions

Using your FSA

First decide if you want to use the Health Care and/or the Dependent Care account.  This is how it works:

• You estimate the amount you will spend on out-of-pocket health care expenses and/or dependent care expenses.
• You decide how much you wish to set aside into your Health Care account and/or your Dependent Care account.
• The amounts you wish to set aside into your accounts will come out of your paycheck (on a pretax basis) in equal amounts each pay period on a schedule established by your employer.
• As you incur health care expenses or dependent care expenses throughout the year, you submit a claim form along with documentation of your expenses, and are then reimbursed from your accounts.  You can be reimbursed by check, direct deposit or through your flex debit card.

Flex Debit Card

A debit card that can simplify the process of paying for eligible expenses. It is an alternative to the traditional method of filing claims. You can use the card at qualifying merchant locations wherever MasterCard is accepted – from physician and dental offices to pharmacies and vision service locations.

Eligible/Ineligible Expenses

Before using the money in your FSA account, you should become familiar with the list of Eligible/Ineligible Expenses.

For more information on the Flexible Spending Accounts

Please visit PayFlex Systems USA, Inc., the UT FLEX administrator for The University of Texas System, beginning September 1, 2004.