What you need to know
Sandia’s pretax spending accounts can help you save money on everyday necessities.
You set aside money from your paycheck to use for dependent care and for transportation and commuting expenses (California employees).
This reduces your taxable income and allows you to pay for these expenses with tax-free dollars.
Dependent Care Flexible Spending Account (DCFSA)
With the DCFSA, you set aside tax-free money to help pay for qualified dependent care so you can work.
You can contribute $100 to $5,000 per year. (IRS limitations apply if both you and your spouse have a DCFSA.)
Use your account to pay for eligible dependent care expenses for your children under age 13 or for older children and family members who need help caring for themselves.
Eligible expenses may include before-school and after-school programs, day care, day camps, nanny care, preschool tuition, and eldercare expenses.
PayFlex administers the DCFSA. You submit your claims through the PayFlex app, online, or by using a form.
You can enroll in the DCFSA as a new hire or during each year’s open enrollment.
Make sure it’s covered
Only certain expenses qualify for reimbursement through the DCFSA. Refer to IRS Publication 503 for the official list of eligible dependent care expenses.
Transportation Spending Account (TSA) – California Employees
California employees can contribute to the TSA.
With the TSA, you can set aside tax-free money to pay for work-related commuting expenses. Eligible expenses include work-related vehicle transportation, transit passes, and parking.
You can contribute up to $270 pretax per month ($3,240 per year) in 2020. If you decide to contribute more, it’s on an after-tax basis.
PayFlex administers the TSA. You submit claims through the PayFlex app or online. Your account comes with a debit card, which you can use to pay your expenses.
You may enroll at any time by completing the Sandia transit parking enrollment form.
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Quick Tip
Set aside pretax money for healthcare expenses too.
Go to healthcare flexible spending account to learn more.