FAMILY
DEPENDENT CARE FSA
Dependent Care Flexible Spending Accounts (DCFSA)
If you pay for day care, after school care, day camp or elder care for any of your dependents, you could be SAVING money on those costs! How? A dependent care Flexible Spending Account (or DCFSA), allows you to set aside pretax funds each paycheck to go toward your dependent care for the year.
How does this help? Your contributions are taken out of your pay before taxes are calculated, which reduces your taxable income. You also do not pay any taxes on funds you take out of the account for qualifying expenses. These tax advantages can save you 20-30% over paying for care with taxable funds.
Use your pre-tax dollars to pay for eligible dependent care costs, including:
- Wages paid to a babysitter so you can work (unless you claim the sitter as a dependent)
- Nursery school or day care center costs
- Elder care
- Wages you pay to someone for providing care for an eligible dependent (child under 13) or any dependent who is physically or mentally incapable of self-care
2025 IRS Contribution Limit:
- $5,000 married filing jointly or single and head of household
- $2,500 married taxpayers filing separate returns
FSA TIMELINE
As mentioned, FSAs have “use it or lose it” forfeiture provisions. You must use your FSA funds on qualified expenses in the year in which you contribute them or during a short grace period after that or they will be forfeited.
Please note: You cannot use your FSA debit card to pay for 2025 expenses incurred during the grace period in 2026. You must instead pay with another method and request reimbursement (a detailed receipt will be required). If you use your FSA debit card for charges incurred during the grace period, the charges will be applied toward your 2026 balance. Here’s a timeline you can follow for your FSA account:
- New Hire Enrollment: Elect if you want to participate in an FSA in 2025 during New Hire Enrollment. You must choose how much you want to set aside in this fund, up to $5,000 for married filing jointly and $2,500 for married filing separately.
- December 31, 2025: The day the FSA Plan year ends.
- March 15, 2026: Last day of the grace period to incur expenses for your 2025 elections. Any unused funds after this date will be forfeited.
- March 31, 2026: Last day to submit a reimbursement request for your 2025 expenses.
To access your FSA, go to benefitsolver.com and click on the MyChoice Accounts button on the homepage.
Group Life and AD&D
The Standard
The City of Abilene provides financial protection for you and your family in the event of death, accidental loss, or extended illness or injury. If you have elected medical insurance you are covered for up to $50,000, at no cost to you. If you have not elected medical insurance, you are covered for up to $1,000, at no cost to you.
Voluntary Life and AD&D Insurance
The Standard
You can purchase Voluntary Life and Accidental Death and Dismemberment (AD&D) Insurance for yourself and your eligible dependents using post-tax dollars. Depending on the amount of coverage you elect, all or a portion of your election may be subject to Evidence of Insurability (EOI) requirements. EOI is a process of confirming that you and your covered dependents are in good health.
Designate or update your beneficiaries Life insurance benefits are paid to the person you name as your beneficiary. During your enrollment, take a moment to designate your beneficiary.
Short-Term and Long-Term Disability Insurance
Disability insurance provides financial protection if you are unable to work due to a serious illness or injury. Short-Term and Long-Term Disability provide coverage for different periods of time, both providing the peace of mind that comes from knowing your family is protected.
The Short-Term Disability policy covers 60% of earnings for up to 90 days after a 14-day waiting period to a maximum of $750 per week.* Maternity coverage is included. Rates are based on your income and age, and are priced in $10 increments.
Long-Term Disability coverage, also 60% of earnings, begins after 90 days to a maximum benefit of $5,000 per month. Maximum coverage extends to retirement age.* Rates are based on your age and percentage of earnings.
*Waiting periods, minimum and maximum benefits, and other conditions apply. For full details, see the Summary Plan Description.
