San Antonio Water System

Health Care FSA

Use it for eligible health care expenses like medical, pharmacy, dental and vision services and supplies incurred by the following persons:

• You and your spouse.
• All dependents you claim on your tax return.
• Your child under age 27 at the end of the tax year.
• Any person you could have claimed as a dependent on your return except that:
  1. The person filed a joint return;
  2. The person had a gross income of $4,300 or more;
  3. Or, you or your spouse if filing jointly, could be claimed as a dependent on someone else’s tax return
  4. Your child under age 27 at the end of the tax year.

if you have an unused Healthcare FSA balance on 12/31/2023, only a portion is eligible to rollover to 2024 if you actively enroll. The maximum roll over amount will be 20% of the Healthcare FSA maximum contribution limit ($610 in 2023).

What can you use your Healthcare FSA for?

• The IRS decides which expenses can be paid from an FSA, which include, but not limited to, deductibles, copayments and medication.
• The IRS can modify the list at any time. Check INSIDER for the list of IRS expenses that are eligible for reimbursement under your FSA.
• As of January 1, 2020, certain over-the-counter medical products have been reinstated as eligible expenses for FSAs without a prescription. These products also include certain menstrual care products.

How does your Healthcare FSA work?
If you decide to set aside money in an FSA to save taxes on eligible health expenses, money is taken out of each paycheck before federal and Social Security taxes are taken out. The full amount that you elect during Open Enrollment will be available on January 1, 2024 even though your deductions are spread over 24 pay periods.

You can use this money to pay co-pays, deductibles, coinsurance, prescription costs and other eligible medical expenses listed by the Internal Revenue Service. A list of eligible expenses can be found on INSIDER in the benefits area of the Human Resources page.

Dependent Care FSA

Use it for eligible dependent care expenses like day care, elder care services and programs for your dependents under the age of thirteen or dependent adults who require dependent daycare services.

Unused Dependent Care (Daycare) FSA balances remaining on 12/31/2023 are not eligible for roll over and will be lost.

How does your Dependent Care (Daycare) FSA Work?

If you decide to set aside money in your Dependent Care FSA, you can use this money to be reimbursed for eligible dependent day care expenses.

You may not be reimbursed for a dependent care expense until your FSA account has accumulated the total amount you are requesting from your paycheck deductions. If you are considered a highly compensated employee, SAWS may be required to reduce contribution to your Dependent Care FSA during the Plan Year to satisfy IRS nondiscrimination rules. Your FSA card cannot be used for dependent care reimbursement.