Flexible Spending Accounts (FSAs)
Two accounts to help you lower your taxable income.
FSAs allow you to set aside pre-tax dollars from your paycheck to cover qualified expenses you would normally pay out of your pocket. We offer two types of FSAs.
Health Care FSA
The Health Care FSA helps you pay IRS-approved medical, dental, and vision care expenses. The maximum contribution is $3,400. Funds you elect to contribute to the Health Care FSA are deducted throughout the year but available in full on the first day of the plan year. For example, if you elect to contribute $1,000, the full election is available on January 1. You cannot enroll in the Health Care FSA if you are enrolled in the Blue HDHP 3 Plan with an HSA.
Dependent Care FSA
A Dependent Care FSA is a smart way to save money while covering the cost of care for your loved ones.
- You choose how much to set aside from each paycheck
- Contributions go into your account before taxes, which means:
- You pay less in taxes
- You keep more of your paycheck
- Once the funds are in your account, you can use them to pay for eligible care expenses incurred during the calendar year
It’s a smart and simple way to reduce your tax burden and make dependent care more affordable while you continue working!
How much can I contribute to my Dependent Care FSA?
New for 2026 – Up to $7,500 per year for single individuals or if married and filing jointly or up to $3,750 per year if married and filing separately.
Eligible Expenses for Dependent Care FSA:
- Cost of child or adult daycare*
- Nursery school
- Preschool (excluding kindergarten & above)
- Summer day camp
* An eligible dependent is a tax dependent child under age 13 or a tax dependent spouse, parent, or child unable to care for themselves.
How much can I save in taxes? (will vary based on tax bracket; consult a tax advisor)
- Identify your income tax bracket: Let’s say you are in the 22% federal income tax bracket and have a 7.65% FICA tax rate
- Calculate federal tax savings: $7,500 (FSA contribution) x 22% (income tax rate) = $1,650
- Calculate FICA tax savings: $7,500 x 7.65% (FICA rate) = $573.75
- Total annual estimated savings: $1,650 + 573.75 = $2,223.75
How to get reimbursed:
- You’ll pay up front and then be reimbursed after submitting a claim through your online account or the EBC mobile app
- If your provider can’t issue an itemized receipt, you can use the EBC claim form
Use It or Lose It
Your FSA elections are effective from January 1 through December 31. You can incur expenses through March 15 of the following year. Claims for reimbursement must be submitted by May 31 of the following year.
Plan your contributions carefully — any money remaining in your account after May 31 of the following year will be forfeited. This is known as the IRS “use it or lose it” rule. FSA elections do not automatically continue from year to year — you must actively enroll each year.
Paying for FSA Expenses
If you are a new FSA participant, you will automatically receive the Employee Benefits Corporation (EBC) Benefits Card pre-loaded with your FSA election. Simply swipe the card at eligible merchants to pay for eligible out-of-pocket expenses.
You can also pay out-of-pocket and submit a complete reimbursement claim form with itemized documentation via fax, mail, online claim filing, scan, e-mail, or by using EBC’s mobile app. Some debit card transactions may still require a receipt and itemized documentation.
Participants are encouraged to register on ebcflex.com to access the employee portal, My Account Assistant, to track claims and payments, submit a new claim, submit Benefits Card documentation, and sign-up for direct deposit.
Contact Information
Employee Benefits Corporation (EBC)
800.346.2126
ebcflex.com
participantservices
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