TexFlex FSA

TexFlex Flexible Spending and Commuter Spending Accounts for Active Employees

Financial planners and tax advisors encourage people to lower their taxable income when possible. By participating in one or more TexFlex  accounts, you can set aside money pre-tax from your paycheck, to cover eligible out-of-pocket health care, dependent care and commuting expenses.

Plan Benefits

How it works

  • Each month, your contribution is automatically withdrawn from your paycheck pre-tax and deposited into your account.
  • When you sign-up for a TexFlex account, you’ll receive a free debit card in the mail to pay for eligible expenses. Purchase eligible items and submit your claim or use your TexFlex Debit Card to have the expense pulled directly from your account.
  • Because the TexFlex accounts are tax-free, the Internal Revenue Service (IRS) requires all purchases with TexFlex funds to be validated. While every effort is made to validate expenses on your behalf, you may be asked to submit proof that you used your card for an eligible expense so be sure to SAVE YOUR RECEIPTS!

Below is an example of savings based on an annual salary of $50,000:

  with TexFlex without TexFlex
Annual pay $50,000 $50,000
TexFlex pre-tax contribution ($2,000) $0
Taxable income $48,000 $50,000
Federal income, Social Security and Medicare taxes ($10,966) ($11,616)
After-tax dollars spent on eligible expenses $0 ($2,000)
Real spendable income $37,034 $36,384
Annual Savings $650 $0
* Sample tax savings for a single taxpayer with no dependents. Actual savings will vary based on your individual tax situation. Please consult a tax professional for
more information.

By lowering your pre-taxable income, you save money.

Eligibility and Enrollment

All benefits-eligible active employees can enroll in, make changes to or cancel TexFlex health and dependent care FSAs within 31 days of your hire date, during Summer Enrollment or within 31 days of a qualifying life event (QLE).

The TexFlex commuter CSAs are month-to-month and you can enroll, change or cancel at any time.
[1] Over-the-counter medications (except insulin) are NOT eligible for reimbursement unless the medication is prescribed.

Retired and Former Employees

Unless you participate through COBRA, your TexFlex health care account will be closed on your last day of employment and you will only be able to submit claims for expenses you incurred before your employment ended. If you have a TexFlex debit card, the card will be deactivated on the last day of the month in which your employment ends.

If you are rehired in the same plan year, make sure to tell your employer if you were previously participating in TexFlex program. Your employer will need to notify ERS or the previous agency to make a smooth transition for you.