The Flexible Spending Account (FSA) is a pre-tax benefit program. With an FSA, you set aside money every paycheck on an income tax-free basis. You can use this money during the year to pay for eligible expenses — tax-free. There are two types of FSA plans available to eligible GIC members, a Health Care Spending Account (HCSA) and a Dependent Care Assistance Program (DCAP). Both of these plans lower your income tax liability by the amount of your deductions.
In exchange for the tax savings that these programs offer, the IRS imposes a use-it-or-lose-it rule. This means that you must use all the money in your account by the end of the plan year, or you lose that money, subject to the grace period.
Active state employees who are eligible for GIC benefits may enroll in a Health Care and/or Dependent Care FSA for the upcoming plan year (July 1 - June 30) during Annual Enrollment. Even if you are enrolled in one or both FSAs this year, you must re-enroll if you wish to participate in in the upcoming plan year.
TASC is the current administrator of FSA benefits.