Flexible Spending Accounts (FSA)

Save Money While Keeping You and Your Family Healthy

What are Flexible Spending Accounts?

The COLB Flexible Spending Account lets you set aside money—before it's taxed—through payroll deductions. If you enroll in the plan, the contributions you make to your account are deducted from your pay before federal, state and FICA taxes are calculated. Your taxable income is reduced, and consequently, your taxable income reflected on your annual W-2 statement is reduced. The money in your FSA account(s) can be used for eligible healthcare and dependent day care expenses you and/or your family expect to have over the next year.

For new hires, eligible expenses that occur either on or after your effective date are eligible for reimbursement. Expenses that occurred prior to your effective date will not be reimbursed under the City's flexible spending plan.

For ongoing employees, the effective date is January 1st of each calendar year.

Expenses eligible for reimbursement under a health FSA are expenses that are medically necessary but not covered by your own, or another insurance plan, and are expenses incurred by you, your spouse, and your dependents (you may claim reimbursement for expenses paid for your registered domestic partner if your registered domestic partner is a dependent) as defined under IRS Code 152. Eligible expenses include medical, dental, or vision costs such as plan deductibles, co-pays, coinsurance amounts, and other non-covered healthcare costs allowed by the IRS.

Dependent Care FSA

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 adviser to determine whether you should enroll in this plan.