Flexible Spending Account (FSA) for Health Care and Dependent Care
Employees may elect to make pre-tax contributions through payroll deduction to cover defined eligible medical and/or dependent care expenses. As they incur eligible medical expense claims during the year, the program reimburses them up to the annual amount they choose to withhold. The State allows you to put aside up to $2,500 per calendar year on a pre-tax basis. In a separate Dependent Care Account, money may be deducted through payroll deduction for dependent or elder care up to $5,000 per calendar year. Employees pay no taxes on the money they get back from the FSA, which can be a significant savings.
For more information on Flexible Spending Accounts click here to redirect you to the State of Rhode Island Office of Employee Benefits site.