A Flexible Spending Account (FSA) allows you to save money by using “before tax” dollars to pay for certain healthcare and dependent care expenses. To enroll, you elect an amount to be deducted pre-tax from your paycheck over 24 pay periods and deposited into your FSA. You may request reimbursement from the account when eligible expenses are incurred.

Overview of Accounts

Medical Spending FSA

  • Your Medical Spending FSA may be used to reimburse out-of-pocket medical expenses for you, your spouse, and your dependents.
  • Eligible expenses include deductibles, coinsurance and prescriptions. Dental, vision and hearing expenses may also be reimbursed.
  • The maximum annual Medical Spending FSA election is $2,500. The entire annual amount you elect may be used at any time during the plan year and is available January 1.

 Dependent Care FSA (DCAP)

  • The annual maximum contribution to a Dependent Care FSA is $5,000 or $2,500 if you are married and filing taxes separately.
  • The Dependent Care FSA is used to reimburse you for expenses for children under age 13, or individuals unable to care for themselves. Unlike Medical Spending FSAs, Dependent Care FSAs may only reimburse expenses up to the amount you have contributed at any time during the plan year.
  • Funds are available one business day after payroll deduction.
  • Dependent Care FSA is for dependent daycare only.


 Medical Spending FSADependent Care FSA
Elect up to:$2,500 tax free$5,000 tax free

How to Use Your Funds

  • When you enroll in a FSA, you will receive a debit card from Allegiance in the mail on or around the middle of the year. The card will hold both Medical Spending and Dependent Care funds.
  • For dependent care, if your provider does not accept Visa, submit the expense through the website, or complete a Day Care Contract if your monthly expenses are the same each month.
  • Reimbursement requests, as well as debit card transaction documentation, can be sent electronically, by fax or by  mail to Allegiance.
  • If the merchant does not accept the card, submit the expense through the Allegiance website at www.askallegiance.com.

Learn More About 2019 FSA