What is a Flexible Spending Account?

A Flexible Spending Account (FSA) is a benefit provided by your employer that allows you to establish a savings account to pay for qualified medical and dependent care expenses. The amount your employer withholds is not subject to payroll taxes – so your payroll tax deduction would be lower! You choose an annual amount of how much you want to set aside for these expenses and, on each payroll date, your employer will set aside that amount for you to use.

How Does it Work?

No Flex Account With Flex Account
Gross Annual Earnings $24,000.00 $24,000.00
Medical FSA Pre-Tax Contribution $0.00 -$2,400.00
Taxable Salary $24,000.00 $21,600.00
Federal Income Tax (15%) -$3,606.00 -$3,240.00
State Income Tax (3%) -$720.00 -$648.00
Social Security Tax (7.65%) -$1,836.00 -$1,652.40
Total Tax Paid $6,162.00 $5,540.40

For a more detailed estimate of your potential flex savings, use the PBA Flex Savings calculator.

Medical (Health Care) Expense FSA

The pre-tax contributions you choose to set aside for a Medical FSA can be used to pay for deductibles, co-payments, coinsurance and some expenses not covered by the health plan, such as dental and vision expenses. A Medical FSA cannot pay for health insurance premiums, cosmetic items, cosmetic surgery or items that improve "general" health. All items must be intended to treat or prevent a specific medical conditionsuch as diabetes, pregnancy or even a skin cut. Generally, allowable items are the same as those qualifying for a medical tax deduction. Click here to view a list of FSA eligible items.

Dependent Care FSA

Pre-tax contributions can also be made to pay for certain expenses to care for dependents that live with you while you are at work. While this often means child care, it can also apply to adult day care for senior dependents living with you, such as parents. It cannot be used for summer camps (other than "day" camps) or long-term care for parents who live elsewhere (such as a nursing home). The Dependent Care FSA is federally capped at $5,000 per year per couple. While married spouses can each elect to have this amount deducted from their paycheck and applied to expenses, all withdrawals over $5,000 (per couple) are taxed. Unmarried couples can each deduct and use $5,000. Unlike Medical FSAs, Dependent Care FSAs cannot be pre-funded. Employees can only be reimbursed as funds are deposited into the FSA. If married, BOTH spouses must earn income in order for the Dependent Care FSA to be used.

PBA Makes It Easy to Manager Your FSA!

Debit Card

With the PBA Flex Benefit Card, a special-purpose Visa® card for use with FSAs, you simply swipe the card at the point of purchase, and the funds are automatically deducted from your medical Flexible Spending Account for payment. The PBA Flex Benefit Card eliminates most out-of-pocket expenses and reducespaperwork.

Instant access to your funds - works like any credit or debit card

  • Use it for co-pays at doctor’s offices or pharmacies
  • No need to file a claim and wait for reimbursement
  • IIAS approved (Inventory Information Approval Systems)

Direct Deposit

When you can’t use your PBA Flex Benefit Card, be sure to take advantage of the Direct Deposit Program provided by PBA which allows you to have your Medical and Dependent Care reimbursements electronically deposited into your bank account. This program gives you peace of mind knowing your funds are deposited, even if you are out of town. Click here to download the Direct Deposit setup form.

Web and Mobile

You are provided secure online access to your account information 24 hours a day, 7 days a week, through our benefit portal website and the PBA Flex Claims mobile app for Android and iOS. You can:

  • Access your enrollment information
  • View your Plan year elections
  • Submit and track claims
  • Upload receipts
  • View your transaction history
  • Check real-time account balance information