Flexible Spending Accounts
The Flexible Spending Account (FSA) Plan enables you to reimburse yourself for eligible dental, vision, and dependent care expenses. The plan is a "cafeteria plan" provided for under Section 125 of the Internal Revenue Code.
Through this plan, you can set aside part of your pay for qualified expenses. These amounts will be subtracted from your wages or salary before federal and Social Security taxes are withheld (and in some cases, state taxes). Therefore, your taxable income reported on your W-2 form will be reduced by the amount of your pre-tax contributions.
There are two types of FSAs:
- Limited FSA—this account is for eligible dental and vision expenses as well as medical expenses you incur after you have met your medical plan deductible.
- Dependent Care FSA—this account is for eligible dependent day care expenses for an eligible dependent.
Voya is the plan administrator.