Flexible Spending Account

A flexible spending account (FSA) is a type of savings account that allows you to contribute money from your paycheck on a pre-tax basis. It can be a great tax savings tool to effectively pay for qualified out-of-pocket expenses, whether related to health care or dependent care.

There are two popular FSAs that Butler provides through WEX Health:

Medical Reimbursement FSA

A Medical Reimbursement FSA, or FSA for short, is used to pay for certain types of out-of-pocket medical expenses not covered under an insurance plan such as:

  • Co-pays
  • Deductibles
  • Dental and vision expenses
  • Lasik eye surgery
  • Prescription drugs
  • Some over-the-counter (OTC) items such as bandages, sunscreen, thermometers, and many more

To see a full list of FSA eligible items, log in to the Wex Benefits website.

The medical FSA contribution limit for 2023 is $3,050. All reimbursement expenses must be incurred within the plan year (January–December). Claims for incurred expenses may be submitted through March 31 of the following year. A maximum of $610 may be rolled over after April 15. Any balance over the maximum rollover amount will be forfeited.

Dependent Care FSA

A Dependent Care FSA is an account that can be used to pay for the daily care of an eligible child or adult dependent. Sometimes referred to as a Dependent Care Assistance Program, or DCA, this FSA allows you to use the funds in your account to pay for things like:

  • Daycare
  • Before- and after-school programs
  • Babysitting in your home by someone who is not your dependent
  • Care for a dependent adult (eldercare)
  • Nanny, nursery school, or pre-school expenses
  • Summer day camp

The DCA contribution limit is $5,000 for single taxpayers and married couples filing jointly or $2,500 for married couples filing separately. Any funds remaining at the end of the plan year, December 31, will be forfeited.