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Flex Spending/HSA

Amarillo ISD provides a comprehensive benefit package which meets employees’ financial security needs at an affordable cost. The programs described within are designed to promote and maintain good health, to provide for retirement, to help meet the cost of illness and accident, and to help provide financial security for employees and beneficiaries.

What is a Section 125 Plan and How Does It Work?

As a district employee, you are eligible to participate in a Section 125 Flexible Benefit Plan. Enrollment opportunities are limited to the plan year dates for your district.

A Section 125 Flexible Benefit Plan allows you, the employee, to select from a list of available benefits which will meet your family’s benefits needs. Certain benefit premiums are deducted from your gross earnings before federal withholding taxes are calculated. The amount you elect to have deducted pre-tax actually lowers your taxable income. By implementing this plan, your employer is helping you reduce your taxes and increase your take home pay. The example below illustrates how the "Cafeteria Plan" can work for you.

Medical Reimbursement

Almost every person has a number of necessary and predictable expenses not paid by their insurance plans. You can save money by putting that amount directly into your Unreimbursed Medical FSA. The FSA will help you pay for these predictable expenses with your pre-tax dollars. Your district allows employees to contribute up to $2,500 per plan year ($208.33 per month) into an Unreimbursed Medical FSA.

Dependent Care Reimbursement

A Dependent Care Reimbursement account allows you to pay for dependent care expenses with “pre-tax” dollars. The maximum contribution amount is $5,000 per plan year. Dependent daycare center expenses are eligible if the care is for your dependent under age 13 and for any other qualifying dependent (including adult dependents) who regularly spend at least 8 hours each day in your household. Child support payments and childcare payments qualifying as alimony are not qualified expenses for reimbursement.

Additional policy information and links:

First Financial Group of America - Medical/Dependent Care FSA & Voluntary Benefits
First Financial website (Opens in new window)

Health Savings Account (HSA)

An HSA allows you to pay your routine health care expenses directly from a prefunded spending account and to have a high-deductible health insurance policy to protect you from catastrophic medical expenses. If the balance on this account runs out, you pay the claim just like under a regular deductible. You may keep any unused balance, or "roll over" at the end of the year to increase future balances or to invest for future expenses.

To be eligible to participate in our HSA plan, you must:

  • Be enrolled in our CDHP.
  • Not be covered by any other health plan that is not a CDHP.
  • Be under the age of 65 (this is an IRS and not a company requirement).
  • Not be claimed as a dependent on another person’s tax return.

HSA funds can pay for any “qualified medical expense,” even if the expense is not covered by your HDHP. You need not substantiate your claims, but we advise you to keep receipts for your expenses in the event you are audited. Funds may be used for medical expenses of your spouse or any of your dependents, even if these individuals are not covered by the HDHP. The funds in your account roll over automatically each year and remain until used. There is no time limit on using the funds.

Contact your local financial institution to get started, and a tax advisor for tax-related information.

Additional policy information and links: