Flexible Spending Accounts (FSAs)

Contributions made to one FSA cannot be transferred to the other FSA.

Participation in this program may slightly reduce your future Social Security benefits as your taxable income is reduced.

FSA plans incorporate a grace period at the end of the plan year. The grace period is an additional 2½ months (January 1 through March 15) during which you can incur eligible expenses that can be reimbursed from your unused prior year FSA account balance. The grace period extends the amount of time you have to incur eligible expenses and helps you avoid forfeiting any of the funds you have already deposited in your FSA account.

You must have a remaining balance as of December 31. If you do not have a balance, the grace period will have no effect on your account. The grace period automatically applies if you are covered by the FSA on the last day of the plan year. If you have a balance in your FSA account as of the last day of the plan year (December 31) and you incur eligible expenses during the grace period (January 1 thru March 15) simply submit those eligible expenses for reimbursement.

It is important to plan carefully as any unused portion after the extension period, March 15th of the year following the current plan year, will be forfeited ("Use It Or Lose It" Rule).

The IRS offers tax deductions for those whose health care expenses exceed 7.5% of their adjusted gross income. For those who exceed this threshold, ask your tax advisor which tax-reducing method is better for you and your family, tax deduction or Health Care FSA.

If on an unpaid, authorized leave, your FSA deductions will be put on hold. The payroll deductions for the FSA will resume when you return to work. The deduction amount will increase to compensate for the missed contributions. You may only file claims for care that was provided while you were actively contributing to your account. Employees who separate, resign, or retire before the end of the plan year have 90 days following the date of separation/termination to submit claims for reimbursement.

All District employees, including those not covered under District-sponsored health benefits.

For the Dependent Care FSA, if you are married, your spouse must work full-time, go to school full-time for at least five months of the year, be disabled or be unable to care for your dependents to be reimbursed.

For the Health Care FSA, only health care expenses incurred by you and the dependents you claim on your federal income tax return can be reimbursed.

Enrollment in the Health Care FSA and/or Dependent Care FSA is not automatic and the election you make for one plan year does not automatically carry-over to the next plan year. You must enroll/re-enroll during each year’s Open Enrollment period (held during the month of November) in order to participate in the following calendar year’s (January to December) plan.

If you are a new employee, you can enroll by filling out the FSA Enrollment form found under the Related Documents tab at the end of this page.

Once you are enrolled, mid-year changes can only be made if you experience a qualifying Major Life Event. The FSA Request for Change form can be found under the Related Documents tab at the end of this page. Any approved changes will be reflected on your future paycheck(s).

Enrolling in any FSA is limited to the annual Open Enrollment period or anytime you experience a qualifying Major Life Event.

Your contributions will be credited to your FSA through automatic payroll deductions which are taken in equal amounts from each paycheck throughout the year.

The maximum contribution for a Health Care FSA is $2,700 beginning January 2020.

For a Dependent Care FSA, the maximum annual contribution is limited to the lowest of the following amounts:

• $5,000 if married and filing a joint return or if employee is a single parent;
• $2,500 if married but filing separately;
• Employee’s earned income for the year; or
• Spouse’s earned income if the employee is married at the end of the tax year.

The minimum annual contribution for both options is $120.

Filing for reimbursement can be made at any time of the year. For Health Care expenses, as long as the total claims for the year do not exceed the amount initially established for the year, your eligible claim will be processed. Reimbursement for eligible Dependent Care expenses will be processed up to the amount that has been contributed at that point in time reduced by any reimbursements previously processed.

Eligible Health Care FSA expenses include prescription eyewear/contact lenses and deductibles/co-pays for medical, orthodontic, and prescription drugs. A full list is available under IRS Publication 502 found at http://www.irs.gov/.

Eligible Dependent Care FSA expenses include child/adult daycare services provided in your/any home and annual registration for licensed daycare centers. A full list is available under IRS Publication 503 found at http://www.irs.gov/.

Note: If you are paying for adult daycare outside your home, your dependent must live with you at least eight hours a day. Daycare providers must claim the income on their tax return and you will be required to include their Social Security number on your reimbursement request.

All claims and requests for reimbursements must be submitted after expenses are incurred or services are rendered. Reimbursements are issued on a daily basis and there is no dollar limit for a reimbursement to be made.

Participants can log in to their account anytime at www.optumfinancial.com and view reimbursement requests, statuses, and balances in the account.

Proof of your expenses is required. If receipts are smaller than 8.5” x11” in size, please tape them to an 8.5” x 11” sheet of paper.

If re-enrolled in an FSA for the following year, had a remaining balance as of December 31 on the previous plan year’s FSA, and eligible expenses are incurred between the grace period of January 1 to March 15 after the end of the previous plan year, please keep in mind that your current/existing funds will automatically be spent first. 

Dependent Care and Health Care Claim forms are available under the "Flexible Spending Accounts" section of the Forms and Publications page. Mail or fax the completed form(s) as instructed on the claim form:

For faster results, you may also submit reimbursement requests:

Online:  https://www.optumfinancial.com
Mobile App:  Download the Optum Financial mobile app (previously "myCYC") and submit as instructed 

FSAs cease to receive funding upon retirement. Reimbursements after retirement are issued only for services rendered while the employee was active. Claims for services rendered after retirement will not be processed.

Retirees have 90 days after date of retirement to submit claims for reimbursement.