Spending Accounts

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.

Lifestyle Spending Account (LSA)

Sandia will reimburse non-represented, benefits-eligible employees (excluding students) up to $500 each year for various lifestyle services and programs. The money must be used by Dec. 31 in the same calendar year.* Enrollment is automatic for eligible employees. If you’re a represented employee, refer to your collective bargaining agreement to verify your benefit options.

Eligible expenses include a variety of items and services ranging from exercise equipment and personal training to roadside assistance programs, pet care, recreational memberships, and meditation classes.

See the complete list of reimbursable expenses.

Each January, you will have access to $500 in your lifestyle spending account. You’ll need to use this money—or lose it—by Dec. 31 every year; your unused balance will not roll over to the new year. Employees hired into eligible positions on or after July 1 will have $250 available for that first year.

Your lifestyle spending account is administered through PayFlex. You’ll be reimbursed for eligible expenses through payroll. This is considered a taxable benefit under IRS regulations. Review the instructions for how to submit a claim for reimbursement.

For more information about the lifestyle spending account, please contact PayFlex.

*If you leave Sandia before December 31, you must submit and get approval for any reimbursements at least two weeks before your final paycheck from Sandia.

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Healthcare Flexible Spending Account (FSA)

See the Healthcare Flexible Spending Account (FSA) page.

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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.

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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 $300 pretax per month ($3,600 per year) in 2023. 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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