TexFlexSM Flexible Spending Accounts for Active Employees

TexFlexSM flexible spending accounts (FSAs) help you pay less in federal income taxes by setting aside money pre-tax from your paycheck to cover eligible out-of-pocket health care and/or dependent care expenses. By lowering your taxable income, a TexFlex account can save you money.

Plan Benefits

  • A health care FSA pays for eligible health, dental and vision expenses for both you and your eligible dependents.
    • Consumer Directed HealthSelectSM participants cannot have a health care FSA.
  • A limited-purpose FSA pays for eligible dental and vision expenses for both you and your eligible dependents.
    • Only Consumer Directed HealthSelect participants can have a TexFlex limited-purpose FSA.
  • A dependent care FSA pays for the care of children or disabled adults while you’re at work. Examples of eligible expenses include after-school care, nursery school, preschool, summer day camp and adult daycare.
    • Eligible children must be under age 13.
    • Eligible adults (or children age 13 and older) must be unable to care for themselves.

How it works

  • Each month, your contribution is automatically withdrawn from your paycheck pre-tax and deposited into your FSA.
  • Purchase eligible services or items and submit your claims, or use your TexFlex debit card to pay directly from your health care or limited-purpose FSA. You can file a claim for dependent care expenses only after the care has been provided, even if you pay for the care in advance.
  • The money in your FSA is subject to use-it-or-lose-it provisions. Please be aware of the deadlines for incurring eligible expenses and submitting claims.
  • Be sure to SAVE YOUR RECEIPTS for all eligible expenses. The Internal Revenue Service (IRS) regulates FSAs and requires all purchases with TexFlex funds to be validated. The TexFlex administrator makes every effort to validate expenses on your behalf, but may ask you to submit proof that you used your FSA funds for eligible expenses.
  • You must claim dependents on your federal income taxes to pay for their health, dental, vision or dependent care with your FSA. However, dependents don’t have to be enrolled in Texas Employees Group Benefits Program (GBP) insurance for you to pay for their eligible expenses with TexFlex FSA funds. 

The IRS regulates all FSAs. It is important to understand FSA rules and regulations before enrolling in an account.

Below is an example of savings based on an annual salary of $50,000:

  with TexFlex without TexFlex
Annual pay $50,000 $50,000
TexFlex pre-tax contribution ($2,000) $0
Taxable income $48,000 $50,000
Federal income, Social Security and Medicare taxes ($10,966) ($11,616)
After-tax dollars spent on eligible expenses $0 ($2,000)
Real spendable income $37,034 $36,384
Annual savings $650 $0
Note: This is an example of tax savings for a single taxpayer with no dependents. Actual savings will vary based on your individual tax situation. Please consult a tax professional for more information.

Eligibility and Enrollment

If you are a benefits-eligible active employee, you can enroll in, make changes to or cancel a TexFlex health care, limited-purpose and/or dependent care FSA within 31 days of your hire date, during Summer Enrollment or within 31 days of a qualifying life event (QLE). You can be enrolled in a dependent care FSA and either a health care or limited-purpose FSA at the same time. You do not have to participate in GBP health, dental or vision insurance to enroll in a TexFlex FSA.

If you enroll in a TexFlex health care or limited-purpose FSA as a new employee and have a health coverage waiting period, you also will have a waiting period for your health care or limited-purpose FSA. Enrollment becomes active on the first day of the month following your 60th day of employment. If your 60th day of employment falls on the first of the month, your health care or limited-purpose FSA begins that day.