Flexible spending accounts (FSAs)

Optum Bank Mastercard^®

Your flexible spending account (FSA) with Optum Bank includes an Optum Bank Mastercard^® which is a fast and convenient way to pay for eligible medical expenses without submitting paper claim forms.

Use it at the pharmacy, pay at the doctor’s office or write your payment card number on your provider bill. Just remember to keep your receipt, because transactions may have to be validated or substantiated per IRS guidelines.

Tax savings 

Your taxable income is reduced by the amounts you deposit into your FSA accounts, up to IRS limits.

2024 limits:

• Health care FSA max IRS Election: $3,200
• Dependent care FSA Max IRS Election:
  • Individual: $2,500
  • Family: $5,000  

2023 limits: 

• Health care FSA max IRS Election: $3,050
• Dependent care FSA Max IRS Election:
  • Individual: $2,500
  • Family: $5,000 
    

Health care expenses

Use your health care FSA, limited purpose FSA or dependent care FSA to pay for qualified medical expenses.

Dependent care expenses

If you have children under 13 or adult dependents who are unable to take care of themselves, you can use your dependent care FSA to pay for eligible daycare expenses.

Estimating costs

FSAs have a “use it or lose it” rule, meaning you can’t carry money from one year over to the next. Be sure to estimate your contributions carefully. Even if you leave funds behind, however, there’s a good chance you’ll still come out ahead due to the tax savings. 

Here’s an example based on having $100 withdrawn from every paycheck and deposited into an FSA:

• Federal income tax (25%) –  $25.00
• State income tax (5%) – $5.00
• FICA (7.65%) – $7.65
• Tax savings every paycheck – $37.65
• Tax savings annually (24 pay periods) – $903.60