Flexible Spending Accounts (FSAs)

A Flexible Spending Account (FSA) helps you save money by setting aside pre-tax dollars to pay for eligible health care and dependent day care expenses. loanDepot offers two optional FSAs through Discovery Benefits:

  • Health Care Account
  • Dependent Care (Daycare) Account

When you enroll in a FSA, you decide how much you want to contribute each plan year. The FSA plan year is January 1 through December 31, and all funds contributed into the FSA must be used by December 31—so plan wisely! The money you contribute is taken from your pay before taxes are deducted, so you can use pre-tax dollars for your medical and dependent care expenses.

FSA accounts are use-it or lose-it, so you should plan carefully when deciding how much to elect in your healthcare FSA. You can use the FSA calculator to help estimate your medical expenses. 

The Health Care FSA is a prefunded account, which means that the full amount you elect will be available to use immediately. The Dependent Care FSA is not prefunded, so the amount available for reimbursement will be the amount you have contributed through payroll deductions.

You will receive a debit card from Discovery Benefits that you can use to pay for your medical or dependent care expenses, or you can submit claims for reimbursement.

Important FSA Rules

As with any great tax break, there are important rules for FSAs, so make sure to review the FSA plan rules from Discovery Benefits.

Once you have made your plan election for the year, you can only change it if you experience a qualifying life event

Both Health Care and Dependent Care FSAs must be actively elected during Open Enrollment. 

If you leave employment with loanDepot, your FSA will end on your last day. If you have unreimbursed costs from prior to your termination date, you can submit claims for reimbursement within 90 days. Unused funds will be forfeited. 

You can contribute up to $2,700 to your Health Care Account each year, and you can use the money in the account to cover many expenses you and your tax-qualified dependents incur that aren’t covered by your medical, prescription, dental, or vision plans, including:

  • Copays, deductibles, and coinsurance
  • Dental expenses like orthodontia
  • Vision care or services not covered by your plan, including contact lens solution and LASIK surgery
  • Check the Discovery Benefits Website to learn more about which expenses are eligible

HSA versus Health Care FSAs

If you enroll in one of the High Deductible Health Plans, you’re not eligible to participate in the Health Flexible Spending Care Account, and should refer to the Health Savings Account instead.

If you enroll in the EPO $500 or PPO $1000 medical plans, you can elect the Health Care FSA.

Click here to learn more about the differences between Health Care FSAs and Health Savings Accounts.