Contribute to Flexible Spending Accounts (FSA)

Health Equity administers Flexible Spending Accounts for health and dependent care expenses.

Flexible spending accounts help you pay for certain expenses that are not covered by a plan with pre-tax dollars. The health care FSA helps you pay for medical, dental or vision expenses such as copays, coinsurance and amounts above benefit maximums, to name a few. The dependent care FSA helps you pay regular daycare expenses for dependent children. FSAs provide tax advantages by letting you set aside pre-tax dollars to pay eligible expenses, so you do not pay Social Security taxes, federal or state income taxes on the money you contribute or are reimbursed.

The Dependent Care maximum annual contribution for St. Jude employees is $5,000 and the medical maximum amount is $3,200 in 2025 (Maximum in 2024 is $3,050).

St. Jude offers an annual benefit for parents of children under the age of six. For regular full and part-time employees with a designated status of 60% or more, St. Jude will contribute annually to their Flexible Spending Account (FSA) for Dependent Care. Employees must also contribute at least $60/year to receive this benefit.

If you do not use all the money you deposit in your accounts during the year, the IRS requires that you forfeit the remaining amount. Money deposited during the year cannot be carried over into the next calendar year.

Keep in mind that if you pay for dependent care expenses out of your flexible spending account, you may not claim the same expenses under the Federal Dependent Care Tax Credit, and that expenses reimbursed from your dependent care spending account will reduce your maximum tax credit. For more information on the Federal Dependent Care Tax Credit, see the Internal Revenue Service website at www.irs.gov or consult your personal tax advisor.

Under the Dependent Care Spending Account, eligible dependents include:

Your dependent children under age 13, whom you can claim on your federal income tax return; and
Your dependent children over age 13 or adults who depend on you for support, whom you can claim on your federal income tax return and who are physically or mentally unable to take care of themselves.

Flexible Spending Account (FSA) debit cards

Enjoy fast, easy access to your saved pre-tax Health Care FSA dollars, which are automatically drawn from your account as purchases are made. The card will look like a VISA but may only be used for eligible items. You must still save receipts; however, you won’t have to submit forms and wait for a reimbursement check.

Examples of eligible and ineligible expenses

	Health Care Spending Account	Dependent Care Spending Account
Examples of eligible expenses	Amounts you pay as a deductible copay or coinsurance under the medical, dental, vision or any other qualifying benefit plan Certain health care expenses you pay that are not reimbursed by any other source. These include expenses for: Hearing aids and their fitting Acupuncture Eyeglasses and contact lenses (when not reimbursed under the Vision Plan)—must be prescribed by a vision care specialist Hypnosis for treatment of illness LASIK surgery (when not reimbursed under the Vision Plan) Braces for your children	Day care centers Babysitters Adult day care centers for dependent adults living in your home Eligible expenses are those described in sections 21 and 129 of the Internal Revenue Code. If you are uncertain whether an expense qualifies for reimbursement, call Human Resources–Benefits or Health Equity at (866) 375-1323 for assistance.
Examples of ineligible expenses	Medical, dental or vision care plan premiums (including COBRA premiums) Cosmetic surgery, treatment or procedures (including prescription drugs used in cosmetic treatment or procedures) Athletic club memberships, spas and non-prescribed weight loss plans Expenses reimbursed by another insurance company or spending account plan Expenses claimed as deductions on a federal tax return Over-the-counter drugs that are considered beneficial to your general health, such as the cost of vitamins and dietary supplements Health and beauty supplies Expenses incurred before you enrolled in the plan Certain nonprescription or over-the-counter drugs, for example, antacids, allergy medications, pain relievers and cold medicines	Care or services provided by your spouse, children under age 19 or anyone you could claim as a legal dependent for federal income tax purposes Child support payments Expenses for overnight camps Expenses reimbursed by another spending account plan Expenses you claim as a credit on a federal tax return Expenses you incurred before you became a spending account participant Food, clothing or entertainment for a dependent General babysitting other than during work hours Private school tuition Transportation to or from the dependent care location

Health Care Spending Account

Dependent Care Spending Account

Examples of eligible expenses

Amounts you pay as a deductible copay or coinsurance under the medical, dental, vision or any other qualifying benefit plan

Certain health care expenses you pay that are not reimbursed by any other source. These include expenses for:

Hearing aids and their fitting

Acupuncture

Eyeglasses and contact lenses (when not reimbursed under the Vision Plan)—must be prescribed by a vision care specialist

Hypnosis for treatment of illness

LASIK surgery (when not reimbursed under the Vision Plan)

Braces for your children

Day care centers
Babysitters
Adult day care centers for dependent adults living in your home
Eligible expenses are those described in sections 21 and 129 of the Internal Revenue Code. If you are uncertain whether an expense qualifies for reimbursement, call Human Resources–Benefits or Health Equity at (866) 375-1323 for assistance.

Examples of ineligible expenses

Medical, dental or vision care plan premiums (including COBRA premiums)
Cosmetic surgery, treatment or procedures (including prescription drugs used in cosmetic treatment or procedures)
Athletic club memberships, spas and non-prescribed weight loss plans
Expenses reimbursed by another insurance company or spending account plan
Expenses claimed as deductions on a federal tax return
Over-the-counter drugs that are considered beneficial to your general health, such as the cost of vitamins and dietary supplements
Health and beauty supplies
Expenses incurred before you enrolled in the plan
Certain nonprescription or over-the-counter drugs, for example, antacids, allergy medications, pain relievers and cold medicines

Care or services provided by your spouse, children under age 19 or anyone you could claim as a legal dependent for federal income tax purposes
Child support payments
Expenses for overnight camps
Expenses reimbursed by another spending account plan
Expenses you claim as a credit on a federal tax return
Expenses you incurred before you became a spending account participant
Food, clothing or entertainment for a dependent
General babysitting other than during work hours
Private school tuition
Transportation to or from the dependent care location

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