Flexible Spending Accounts

MNPS offers two flexible spending accounts — a Health Care FSA and a Dependent Care FSA — that let you set aside tax-free money to pay for many common health and dependent care expenses. Because the money comes out of your paycheck before taxes, you pay less for expenses like deductibles, copays, coinsurance and childcare.

The FSAs are administered by Cigna. You can enroll in one or both, and you do not have to be enrolled in the medical plan to participate.

What You Can Set Aside

Each year, you choose how much to contribute to each FSA — as little as $240/year or up to IRS annual limits:

The Health Care FSA: Up to $3,400 in 2026
Dependent Care FSA: Up to $7,500/year in 2026

Use Your FSA Funds to Pay For...

Health Care Expenses

Eligible costs include medical, dental and vision expenses not covered by insurance, such as:

Deductibles, copays and coinsurance
Prescription drug copays
Vision and hearing care
Diabetes and medical supplies
Many over-the-counter drugs and menstrual care products
Smoking cessation and weight-loss programs (when prescribed for a medical condition)

You can be reimbursed for eligible health care expenses up to your full annual election, even before entire annual contribution amount has been deducted from your paychecks.

Dependent Care Expenses

Eligible costs include:

Daycare for children under age 13
Before- and after-school care (if not included in tuition)
Care for a disabled spouse or tax-dependent relative who relies on you for at least half their support

For dependent care, you can only be reimbursed up to your current account balance.

For a full list of eligible expenses, visit the Cigna website.

How to Spend Your FSA Dollars

Health Care FSA — debit card or claim: Use your FSA debit card at any vendor that accepts FSA purchases. It works like a normal debit card and draws directly from your balance. Save your receipts in case Cigna asks you to verify a purchase. You can also pay an eligible expense out of pocket and submit a claim with your receipt through myCigna to get reimbursed.
Dependent Care FSA — claim only: Pay for the expense and submit a claim with receipts through myCigna. You'll receive reimbursement by check or direct deposit.

Deadlines and Grace Periods

Health Care FSA: You have until March 15 of the following year to incur eligible expenses, and until June 15 to file your claims. This grace period gives you a buffer if you overestimate your expenses.
Dependent Care FSA: All expenses must be incurred by December 31, and you have until March 15 of the following year to submit claims for those expenses.

Enrolling Each Year

Unlike most of your other benefits, FSA elections do not roll over every year. You must re-enroll during Annual Enrollment — even if you want to keep the same contribution amount.

When you enroll, estimate what you expect to spend separately on health care and dependent care for the year. Contribute only what you're confident you'll use so you don't lose any unused funds.

Questions?

Call Cigna Customer Service at 1-800-244-6224 or visit myCigna to manage your account, check your balance and submit claims.

FSA Rules

Because FSAs offer tax advantages, the IRS places certain restrictions on these accounts:

No Contribution Changes

Once you decide how much to contribute to each account, you cannot change it until the next plan year, unless you experience a qualifying life event.

No Transfers

If you participate in both FSAs, you cannot transfer money between your two accounts or use money in one to pay expenses for the other.

Use It or Lose It

Be careful not to overestimate your expenses for the calendar year — any unused funds are forfeited at the end of the plan year, unless a grace period applies.

Health Care FSA (offers grace period): You can incur eligible expenses until March 15 of the following year and file claims until June 15.
Dependent Care FSA: You must incur all eligible expenses by year-end and file claims by March 15 of the following year.

Health Care FSA vs. Claiming Expenses on a 1040

Unless your itemized medical expenses exceed 7.5% of your adjusted gross income, you cannot claim them on your IRS Form 1040. But you can save taxes by paying for your out-of-pocket medical, dental and vision expenses through the tax-free Health Care FSA.

Dependent Care FSA vs. Tax Credit

You may use the Dependent Care FSA or the Child and Dependent Care Tax Credit, but not both. Talk to your financial advisor to determine which is right for you.

Additional Dependent Care Rules

The annual amount submitted for reimbursement cannot exceed the lesser of your or your spouse’s income.
The dependent care expenses must be necessary to enable you to work. If you’re married, the IRS requires both you and your spouse to be employed, unless your spouse is disabled or a full-time student at least five months of the year.
Your payments cannot be made to a person you claim as a dependent.
If the services are provided by a dependent care center that provides care for more than six individuals (other than a resident of the facility), the center must comply with all state and local laws.
When filing your federal income tax return, you will be required to supply the name, address and taxpayer identification number of the dependent care provider.