An Omega Benefit Strategies Flexible Spending Account (FSA) is a pre-tax account used to pay for eligible out-of-pocket medical, dental, vision and hearing expenses not covered by the medical plan. We administer several types of FSA plans. The most common plans are the Healthcare Reimbursement Account (“Health FSA”), the Dependent Care Assistance Account (“Dependent Care FSA”) and the Limited Purpose FSA. Each allows employees to set aside pre-tax dollars to be used for designated eligible expenses and is explained below. Every company and its culture is unique. Omega Benefit Strategies can assist employers in choosing which plan type best fit the needs of their employees.
Health Care Reimbursement Account (Health FSA)
- The Health FSA is for out-of-pocket medical, dental, vision and hearing expenses incurred by the employee and the employee’s qualifying eligible dependents. A qualifying eligible dependent is generally:
- A spouse
- A dependent that is claimed on the employee’s taxes
- Adult child(ren) under the age of 26.
Dependent Care Assistance Account (Dependent Care FSA)
The Dependent Care FSA can be used to pay employee expenses related to the cost of dependent care while the employee is at work. Eligible dependents must be under the age of 13. Tax dependents age 13 and older are also eligible if they are physically or mentally incapable of self-care and reside in the employee’s home at least half the year. If the employee is married, their spouse must be employed or attending school full time.
Limited Purpose FSA
The Limited Purpose FSA is very similar to a Health FSA. The difference is that the Limited Purpose only reimburses for eligible dental and vision expenses. This plan is most frequently used when the employer also offers a Health Savings Account (HSA). IRS regulations do not allow anyone to make or receive HSA contributions if they are enrolled in a full Health FSA.
25 Depot Ave
Falmouth, MA 02541
PO Box 730
Falmouth, MA 02541