Civilians eligible for spending accounts

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RANDOLPH AIR FORCE BASE, Texas (AFPN) --  Most Air Force civilian employees are now eligible to contribute to a flexible spending account which allows money to be set aside tax-free for certain health-care and eligible family member-care expenses.

Flexible spending accounts are a new benefit that allows federal employees to set aside dollars, on a pre-tax basis, for many common expenses not covered by the federal employees health benefit program or any other source, said Janet Thomas, human resources specialist here.

An open season enrollment period begins May 19 and runs through June 20. The effective date for Department of Defense employees is Sept. 1. Only expenses incurred September through December are reimbursable.

"With an FSA, you can reduce your taxes and increase your take-home pay while paying for services you'd have to pay for anyway," she said.

There are two types of accounts:

-- Health-care FSAs may be used to pay for health-care expenses of employees and their family members not reimbursed by health insurance or any other source and not claimed on the participant's income tax return. Expenses include deductibles, co-insurance and insurance co-payments, as well as services not generally covered like dental care, orthodontic treatment, hearing aids, physician-directed weight-loss programs and laser eye correction. To participate, federal civilian employees must be eligible to enroll in the FEHB program.

-- Dependent-care FSAs may be used to pay for eligible family member care expenses when such care is necessary to enable the employee and spouse to work, or allow the spouse to attend school full time. Expenses can be paid for the care of children younger than 13 and adults who qualify as dependents. Temporary employees with no fixed work schedule whose tour of duty is six months or less are not eligible.

Employees can enroll directly with the contract administrator at www.fsafeds.com or toll free at (877) 372-3337, 9 a.m. to 9 p.m. EDT weekdays. After the initial open season, employees will need to make an election each year during the FSA open season which will coincide with the FEHB open season.

Program information is available at www.opm.gov/insure/pretax/fsa/index.asp.

Currently, retirees and military personnel are not eligible for either program. (Courtesy of Air Force Personnel Center News Service)