Flexible Spending Accounts (FSA)

Flexible Spending Accounts (FSA) are a State of Iowa benefit that allow all State employees (who work at least 1040 hours/year) to pay for eligible health and dependent care expenses while saving money on income and FICA taxes.

Participants in FSA are reimbursed for up to $2,500 in eligible health expenses and $5,000 in eligible dependent care expenses.

for 2008
There are two important improvements for 2008!

Health FSA annual maximum has been increased.
The grace period for incurring dependent care claims has been extended.