Overview
The City offers two types of Flexible Spending Accounts (FSAs) that are administered by Diversified Benefit Services (DBS):
- Health Care FSA
- Dependent Care FSA
FSAs allow you to put before-tax funds into an account that you can use to pay for certain eligible expenses you would have normally paid for using after-tax dollars. By using before-tax dollars, you are lowering your taxable income, thus lowering the amount of taxes you pay.
Important note about your FSA: The Health Care FSA and Dependent Care FSA are two separate accounts. You cannot use funds from one account to pay for expenses of the other. You also cannot transfer funds between the two accounts.
Health Care FSA
How Does It Work?
You choose an annual amount to be deducted on a before-tax basis from each of your 24 paychecks in equal installments and deposited into your FSA throughout the year. The full amount of your annual election will be available for immediate use.
Minimum Annual Election $100 | Maximum Annual Election $3,400 per employee
FSA Carry Over
You will be eligible to roll over up to $680 of your 2026 unused Health Care FSA funds into your 2027 Health Care FSA as long as you re-enroll during annual Open Enrollment. You have until March 31, 2027, to submit 2026 claims and receipts. You have one year to use rollover funds, or they will be forfeited.
These funds may be used to pay for healthcare expenses not covered by insurance and approved by the IRS, incurred by you or your tax dependents (even if they are not covered by the City’s plans).
What Are Eligible Expenses?
- Deductibles, copays, and coinsurance
- Non-cosmetic dental work (itemized receipt needed)
- Orthodontic services (detailed care plan needed)
- Eyeglasses/contact lenses (itemized receipt needed)
- Some over-the-counter items (menstrual care products, pain relievers, antacids, bandages, cold/flu medications, digestive aids, nasal sprays, sunscreen 15+ SPF, etc.)
- Review eligible expense lists by visiting dbsbenefits.com/participant-resources/flexible-spendingaccounts-fsa/
What Are Ineligible Expenses?
- Cosmetic surgery/procedures, teeth whitening
- Family/marital counseling
- Over-the-counter vitamins/supplements
- Personal items (toothpaste, shaving cream, etc.)
How Do I Use the Funds?
Use a debit card or pay cash, submit a claim, and reimburse yourself.
How Do I Get Reimbursed?
Mandatory Direct Deposit
Dependent Care FSA
How Does It Work?
You choose an annual amount to be deducted on a before-tax basis from each of your 24 paychecks in equal installments and deposited into your FSA throughout the year. Only the amount you have contributed through payroll deductions will be available for use.
Minimum Annual Election: $100 Maximum Annual Election: $7,500 per household ($3,750 if you are married and file separate tax returns)
FSA Carry Over
Any unused funds on December 31, 2026, will be forfeited per IRS rules. You have until March 31, 2027, to submit 2026 claims and receipts.
These funds may be used for dependent care expenses incurred for your tax dependent while you and your spouse work or attend school full time.
What Are Eligible Expenses?
- Licensed child care for children under age 13, including preschool tuition and registration fees
- Adult dependent day care for a tax dependent
- Before- and after-school care and summer camps
- Work-related babysitting (by someone who is not your tax dependent)
- Care for a disabled child who is a tax dependent
What Are Ineligible Expenses?
- Care for a child age 13 or older
- Care for a child or adult who is not your tax dependent
- Babysitting while you are not working
- Care provided by a non-licensed day care or private schools
How Do I Use the Funds?
You will need to pay up front for your day care expenses, then submit a claim and receipt to DBS for reimbursement.How Do I Get Reimbursed?
Mandatory Direct DepositAccounts At a Glance
| Flexible Spending Accounts (FSA) | ||||
|---|---|---|---|---|
| Health Care FSA | Dependent Care FSA | |||
| How Does it Work? | You choose an annual amount to be deducted on a pre-tax basis from each of your 24 paychecks in equal installments and deposited into your FSA throughout the year year. The full amount of your annual election will be available for immediate use. | You choose an annual amount to be deducted on a pre-tax basis from each of your 24 paychecks in equal installments and deposited into your FSA throughout the year. Only the amount you have contributed through payroll deductions will be available for use. | ||
| Minimum Annual Election | $100 | $100 | ||
| Maximum Annual Election | $3,400 per employee | $7,500 per household ($3,750 for those married filing separately) | ||
| FSA Carryover | You will be eligible to rollover up to $680 of your 2026 unused Health Care FSA funds into your 2027 Health Care FSA as long as you re-enroll during annual open enrollment. You have until March 31, 2027 to submit 2026 claims and receipts. You have one year to use rollover funds or they will be forfeited. | Any unused funds on December 31, 2026 will be forfeited per IRS rules. You have until March 31, 2027 to submit 2026 claims and receipts. | ||
| What are Eligible Expenses? | Health care expenses not covered by insurance and | Dependent care expenses incurred for your tax dependent while you and your spouse work or attend school full time. | ||
| What are Eligible Expenses? | Examples: • Deductibles, copay, and co-insurance • Non-cosmetic dental work (itemized receipt needed) | Examples: • Licensed child day care for children under age 13, including preschool tuition and registration fees • Adult dependent day care for a tax dependent • Before/after school care and summer camps • Work-related babysitting (by someone who is not your tax dependent) • Care for a disabled child that is tax dependent | ||
| What are Ineligible Expenses? | Examples: • Cosmetic surgery/procedures, teeth whitening • Family/marital counseling • Over-the-counter vitamins/supplements • Personal items (toothpaste, shaving cream, etc) | Examples: • Care for a child age 13 or older • Care for a child or adult who is not your tax dependent • Babysitting while you are not working • Care provided by a non-licensed day care and private schools | ||
| How Do I Use the Funds? | 1. Debit card 2. Pay cash, submit a claim and reimburse yourself | You will have to pay up front for your day care expense then submit a claim and receipt to DBS for reimbursement. | ||
| How Do I Get Reimbursed? | Mandatory Direct Deposit | Mandatory Direct Deposit | ||
How to File a Claim
Filing a Claim Online:
- Step 1: Go to DBSbenefits.com and log in to your account.
- Step 2: Select the benefit plan type (Health Care FSA or Dependent Care FSA).
- Step 3: Click Claims > Claims View/Submit > Submit.
- Step 4: Complete the required information and attach an image with supporting documentation (.pdf or .jpg).
- Step 5: Click Submit.
Filing a Claim via the DBS App:
- Step 1: Open the DBS app and log in with your username and password.
- Step 2: Click File a Claim.
- Step 3: Click Attach Image and attach a photo of any supporting documentation.
- Step 4: Select the benefit type (Health Care FSA or Dependent Care FSA).
- Step 5: Enter the dollar amount, answer any additional questions, then click Submit.
Filing a Claim via Fax or Mail:
- Step 1: Download a claim form at plano.gov/benefits.
- Step 2: Complete the form and attach copies of your documentation.
- Step 3: Mail to the address below:
Diversified Benefit Services
P.O. BOX 260
Hartland, WI 53029
- Step 4: Or you can fax to 262-367-5938.
For assistance, please call DBS at 800-234-1229 or visit DBSbenefits.com using the PIN: City of Plano.
Important FSA Considerations
When using your debit card to pay for dental and vision expenses, the IRS requires you to substantiate those purchases. Remember to ask your provider for a detailed and itemized receipt.
Take a picture of your itemized receipt and upload it through the DBS mobile app for easy claim substantiation.
DBS will notify you if you are required to provide an itemized receipt for substantiation. If you fail to provide it in a timely fashion, your debit card may become suspended until the substantiation has been provided.
Your debit card will only work at merchants with designated merchant category codes. The card will not work at gas stations, hair salons, sporting goods stores, or similar retailers.
Contact Information
Diversified Benefit Services
800-234-1229
dbsbenefits.com
PIN: City of Plano
Download the App
File claims using your smartphone or tablet. Download the Diversified Benefit Services app from the
Apple App Store or Google Play.