Spending accounts help you save money on eligible out-of-pocket health care and dependent daycare expenses. Your contributions come out of your paycheck before federal income and Social Security taxes, so you pay less in taxes and may have more take-home pay.
Types of Flexible Spending Accounts
Limitations on Flexible Spending Accounts
- If you contribute to a Health Savings Account, you cannot participate in the Heath Care Spending Account.
- Both accounts must be treated separately. For example, you cannot use money deposited in your Health Care Spending Account to cover dependent daycare expenses or vice versa. Funds cannot be transferred from one account to the other.
- All the money in the Spending Accounts each year must be exhausted. Any money remaining at the end of the year cannot be carried over and it is forfeited - “use it or lose it.”
Both types of spending accounts are administered by the experts at Take Care by WageWorks. Call them at (800) 950-0105.