Flexible Spending Account (FSA)

The Town of Westerly offers its employees a Flexible Spending Account (FSA) in compliance with Section 125 of the IRS Tax code.  Employees are eligible to put pre-tax dollars into their FSA account for both medical and dependent care expenses.  Employees can contribute up to the IRS maximum for medical expenses, which is $2,650 for the current plan year. Employees can contribute up to the IRS maximum for dependent care, which is $5,000 for the current plan year.

The Town's FSA program is a "use it or lose it plan", any monies not used by the end of the plan year are forfeited.  Employees are highly encouraged evaluate their balances and as the end of the plan year approaches, go to the FSA Store to see if they can spend down their balances. 

For additional information on the Town's FSA program please see the:

BCBSRI - FSA Member Guide

Medical - Flexible Spending Account

Employees Covered by Town's Medical

Employees who have coverage through the Town of Westerly and are on the High Deductible Health Plan - Health Savings Account (HDHP - HSA) are restricted to a Limited Purpose FSA (LP FSA).

A LP FSA covers eligible dental and vision expense only and is intended for staff enrolled in the HDHP - HSA.  For additional information on the LP FSA please see the below:

Limited Purpose - FSA - FAQs

Employees Not Covered by Town's Medical

Employees who do not have coverage through the Town of Westerly, are not restricted to a LP FSA.  Typically, individuals can spend their FSA monies on all qualified medical expenses and are not limited to just vision and dental.  For additional information on your FSA please see the below:

IRS Publication 969 - FSA

Dependent Care - Flexible Spending Account

Employees, regardless of whether they have medical coverage through the Town, are eligible to participate in the Dependent Care FSA program up to the IRS maximum plan year limit.