Flexible Spending & Health Savings Account

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Health Savings Accounts (HSAs)

If you elect the Consumer Choice plan with an HSA, you cannot use the Flex plan for qualified medical expenses. However, you are still eligible to participate in the Flex plan Dependent Care Spending Account and/or Adoption Assistance Spending Account.

HSA dollars are yours. HSA dollars can roll over from year to year and can be taken with you when you retire or leave the city for any reason.

Flexible Spending Accounts (FSAs)

 

The City of Fort Worth offers three types of Flexible Spending Accounts (FSAs) to help you save for out-of-pocket expenses. This money is deducted pre-tax, so it will lower your taxable income.

These accounts are “use or lose”, meaning that you must use most of your funds by the end of the plan year or you lose the money. You will be able to carry over up to $500 of your FSA Health Account at the end of the plan year to use in the next year. 

HSA

Health Savings Accounts (HSAs)

 Watch the HDHP with HSA video to learn more about Health Savings Accounts.

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When you have a qualified expense, you may pay it from your HSA using your debit card. You may also pay expenses out of your own pocket and save your HSA for future qualified expenses. The HSA is tax-advantaged, which means the money that goes into the account is exempt from federal income taxes - earns interest free of federal taxes, and is not subject to federal tax when you use it to pay for qualified medical expenses. HSA reimbursement is limited to the balance in your personal HSA account.

 

For example, if you have a bill for $200 and your account has a balance of $50, you will only be able to access $50 for payment. You are not required to substantiate expenditures from your HSA to the HSA administrator, but this information should be retained for tax purposes.

Note: According to IRS rules, you are not eligible to participate in an HSA if you are covered by another health plan or enrolled in Medicare.

 

HSA Account

HSA Account Holders, use this link to transition and close your HSA account with Discovery Benefits in order to transfer funds and open an account with the city's new benefits vendor, WageWorks. 

View a guide on how to log into your HealthEquity Health Savings Account

 

Examples of Qualified Medical Expenses

  • Deductible payments
  • Copays and coinsurance
  • Vision exams and hardware
  • Prescriptions
  • Dental care and braces
  • Chiropractic or naturopathic services
  • Long Term Care Premiums
  • Medicare Part B, C & D Premiums (But NOT the premium you pay to the City as a retiree)
  • Other services provided by a qualified medical professional that may not be covered by the medical insurance. Cosmetic surgery is not covered.

Go online to the cfwbenefits.com to enroll in benefits or view your elections.

FSA

Types of Flexible Spending Accounts

  1. You can set up a FSA Health Account for eligible health care expenses such as deductibles, copays, co-insurance, prescription drugs and dental expenses. The maximum you can contribute is $2,550.
  2. You can set up a FSA Dependent Care Account to help pay for eligible child and elder care expenses so you (and your spouse, if married) can continue work or attend school. The maximum contribution is $5,000 per family.
  3. You can also set up a FSA Adoption Account to cover adoption-related expenses such as legal fees, home-study costs and travel expenses.

Participants in the Consumer Choice Plan cannot contribute to the Flexible Spending Health Account.

Health Care Savings Account 

Qualified expenses include medical, dental, vision, and hearing expenses or you and your dependents. Include only your expenses after reimbursement from insurance plans in this election. You do not have to cover a dependent on the medical or dental plans in order to use the money on their expenses.

You will be provided a debit card to pay your expenses directly from the account. You must retain receipts in the event the FSA Company or IRS requires copies of receipts to verify the claims were for qualified medical expenses.

If you are participating in the Consumer Choice health plan, you will have a Health Savings Account and cannot enroll in the FSA Health Care Spending Account.

Examples of qualified medical expenses:

  • Deductibles
  • Copays
  • Coinsurance
  • Eye exams, glasses, contact lenses
  • Lasik eye surgery
  • Dental Care, including orthodontia
  • Durable medical equipment prescribed by a physician

Salary Reduction Amount: Minimum of $260, maximum of $2,550 per year

Dependent Care Spending Account

If you have children under the age of 13 or a disabled spouse or tax dependent disabled parent/child, you may set aside funds on a pre-tax basis to help pay for their care. Both you, and your spouse, if married, must work outside the home or in school full time. You may participate in the Dependent Care Spending Account if you are enrolled in the Consumer Choice plan.

Examples of eligible expenses:

  • Babysitting, inside or outside your home
  • Day care providers
  • Adult care inside or outside your home
  • Private school tuition is NOT reimbursable under the dependent account.
  • When claiming dependent care expenses, you must provide the SSN or Tax ID of the provider.
  • Salary Reduction Amount: Minimum of $260, maximum of $5,000 PER family or $2,500 if married and filing separate tax returns

Adoption Assistance Spending Account

Qualified expenses include adoption fees, attorney fees, and court costs associated with adoption proceedings. Include only your expenses after reimbursement from insurance plans in this election.

Salary Reduction Amount: Minimum of $260, maximum of $12,650 per year.