Flexible Spending Accounts

The City of Plano offers two types of accounts:

  • Health Care FSA
  • Dependent Care FSA

The FSA accounts allow you to contribute through payroll deduction on a tax-free basis for use on expenses throughout the calendar year. The Flexible Spending Account (FSA) is administered by UnitedHealthcare (UHC).

If you elect to contribute to one or both of these accounts, you choose an annual amount to be deducted from each paycheck (a total of 24 paychecks) and deposited into your FSA throughout the year. Your premiums are deducted from the first two paychecks of each month before you pay taxes, resulting in savings by reducing your taxable income. When you incur eligible health care or dependent care expenses, use these accounts to reimburse yourself up to the amount you elected to contribute to the account for the year.

A complete list of eligible expenses is available at myuhc.com. Claims can be faxed or mailed to UHC and claim forms are available at myuhc.com.

Important FSA Considerations

  • Up to $500 of your unused 2019 Health Care FSA funds will roll over into 2019 if you elect FSA during Open Enrollment. This applies to unused funds in your account as of December 31,
    2019. Qualifying expenses will be deducted from 2020 funds first before the 2019 rollover balance can be used. You have one year to use all of the 2019 balance or it will be forfeited.
  • The Health Care FSA allows you to be reimbursed up to the full amount you elected to contribute for the year—even if your balance is lower.
  • The Health Care FSA and the Dependent Care FSA are separate accounts. You cannot use funds from one account to pay for expenses of the other. You also cannot transfer funds between the two accounts.
  • The Dependent Care FSA allows you to contribute up to $5,000 annually. If you are married and each parent elects Dependent Care FSA, each parent can only contribute $2,500.
  • Any money left in your Dependent Care FSA as of December 31, 2020 may not be rolled over to pay for expenses in another plan year. Any unused funds will be forfeited, per IRS rules.
  • For the Dependent Care FSA, you may only be reimbursed up to the balance in your account at the time you file a claim. If your eligible expenses are greater than that amount, the unreimbursed amount will carry over and be reimbursed after your next deposit.