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 $2,700 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 (or $2,500 if you're married and filing taxes separately). Employees pay no taxes on the money they get back from the FSA, which can be a significant saving.
For more information on Flexible Spending Accounts click here to redirect you to the State of Rhode Island Office of Employee Benefits site.
If you are currently enrolled in this payroll deduction plan, please do not ignore any email requests you may receive for substantiation from Navia Benefit Solutions (formerly Flex-Plan Services) or your FSA card may be suspended.