FSA and DFSAs help reduce your taxable income by allowing you to set aside pre-tax dollars that you can use toward eligible health care and dependent day care expenses throughout the year. This pre-tax deduction lowers your taxable income, reducing the amount of tax you owe on your bi-monthly paycheck.  You do not have to be enrolled in a Lake County Schools medical, dental or vision plan to enroll in an FSA.

Health Care Flexible Spending Accounts (FSA)

• Reimbursement of eligible health care expenses for you and your dependents.

• Elect up to $3,200 for 2024.

• Qualified expenses include out-of-pocket medical, dental, vision, and other health-related costs.

• Some over-the-counter medications and supplies.

• Funds are preloaded onto a debit card and available to use immediately.

You may roll over up to $640 from 2023-2024 if you re-enroll in the FSA for 2024-2025 If you don’t, remaining 2023 funds will be forfeited at the end of the plan year.

Dependent Daycare Flexible Spending Accounts (DFSA)

• Reimbursement of eligible dependent daycare or elder expenses.

• Elect up to $5,000 for 2024

• If account holder is married and files a separate tax return. $2,500 for each tax return filed up to the $5,000 maximum.

• If the account holder is married and files a joint tax return . $5,000 maximum.

• If the account holder is single/head of household. $5,000 maximum

Submit claims online or via mobile app within 30 days of the end of the plan year.

If you change your employment status and become ineligible for this benefit, or you leave LCS during the year, you will be able to use funds in your account(s) or claims incurred after the end of the month in which your status changes or leave LCS. You will then have 30 days to submit receipts for reimbursement. Any funds remaining in your account(s) after that date are forfeited.

Health Care Flexible Spending Accounts (FSA)

HSAs offer the incredible opportunity to invest your account funds. FSAs do not let you invest, which means whatever money you put in is the money you get. By contrast, you can invest your HSA and any potential growth accrues on a tax-free basis. Members may treat their HSA like a complementing retirement account to their 401(k). Just like a 401(k), they make pre-tax contributions and enjoy tax-free earnings. An HSA even brings an extra advantage: You can take tax-free distributions from your HSA at any time to pay for qualified medical expenses. Distributions from a 401(k), on the other hand, are always taxed as ordinary income (and in most cases you have to wait until a certain age).