What is a Section 125 Flexible Spending Account?

CVUSD employees have the opportunity to reduce their taxable earnings by participating in a Section 125 Flexible Spending Plan! The Section 125 Flexible Spending Account (FSA) enables employees to save money by paying various expenses on a “pre-tax” basis. “Pre-taxing” serves to reduce reported W-2 earnings, ultimately reducing taxable income. Examples include but are not limited to employee medical benefit contributions, dependent day care, medical co-pays, deductibles, prescriptions, over-the-counter medicines (physician-prescribed), weight loss programs (physician-prescribed), orthodontia, dental and vision care, including LASIK eye surgery.

The FSA program is administered by American Fidelity Assurance. If you are not familiar with the FSA program, or have any questions about it and how it might benefit you, please visit the American Fidelity website at: www.americanfidelity.com

Section 125 - UPDATES

There are major beneficial changes to the Flexible Spending Account (FSA) plan! 

No more 'use it or lose it':  At the end of each school year, up to $500 in expenses incurred may be carried over to the following school year for the Unreimbursed Medical Flexible Spending Account.

There are now several options for submitting FSA claims, including:

  • AFA Flex Debit Card - File your bill with AFA by using a debit card
  • AFA Mobile - Photograph your bill and submit it via your cell phone
  • File electronically via the secured AFA Online Service Center
  • Complete a Reimbursement Form and fax or mail it to AFA

You must enroll in order to participate in the new FSA plan year, which begins July 1st. Current Section 125 FSA participants must re-enroll each year in order to participate in the new plan year.  (An appointment is NOT needed to continue FSA participation regarding only out-of-pocket employee health benefit contributions to an HMO or PPO.)