TexFlex Spending Accounts
A TexFlex flexible spending account (FSA) allows you to set aside money from your paycheck each month before income and FICA taxes. The TexFlex account must be used for health expenses, including (but not limited to) co-payments for doctor and dentist visits, prescription drugs, vision care and day care for a child or adult family member.
You have until the end of the plan year to use your TexFlex health care funds (August 31). You can carry over up to $500 in unused funds into the next plan year. Any unused funds greater than the carryover limit ($500) are forfeited after the last day of the plan year. There is no carry over for TexFlex day care funds.
Following this plan, the entire amount you pledge for the plan year is available up front, so it is like an interest- and tax-free loan that can be used for approved health care costs. The TexFlex annual maximum contribution is $2,550 for health care.
FSA-Day Care Account
This plan is used for day care for children younger than 13 or for adult family members. Following this plan, you must pay out-of-pocket for day care expenses and then file for reimbursement. The TexFlex annual maximum contribution is $5,000 for day care.
PayFlex Debit Card
This debit card allows you to access your FSA-Health Account without having to pay for health care costs with cash or a credit card and then file for reimbursement. Keep all debit card receipts in case you are asked for them.
You must activate the debit card prior to use and may contact ADP to request additional cards. There is no charge for the TexFlex health care account debit card.
Dependent care participants will no longer be eligible to use the debit card and will need to submit claims online, by fax or by mail.