Flexible Spending Accounts: 2014 Medical Care Spending Account

Medical Care Spending Accounts are accounts where you can set aside money PRE-TAX to help pay for out-of-pocket medical, dental and vision expenses for you, your legal spouse and dependent child(ren). This page provides a lot of information so you can understand exactly how this type of account works.

How the Medical Spending Account Works

Over-the-Counter Medications

Mileage reimbursement rate effective 1/1/13 is $.24 cents per mile (IRS Notice 2012-72)

For employees who enroll in the Medical Care Spending Account during the calendar year (e.g. newly hired) the $2,500 maximum allowed by the IRS is prorated depending on when the account becomes effective.  The prorated maximum enrollment limits are:

Benefit Effective Date Maximum Amount
January 1 $2,500
February 1 $2,290
March 1 $2,080
April 1 $1,875
May 1 $1,665
June 1 $1,460
July 1 $1,250
August 1 $1,040
September 1 $830
October 1 $625
November 1 $415
December 1 $210

Medical and Dental Expenses - IRS Publication 502
Limit set on Medical Spending Accounts - IRS Notice 2012-40