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Flexible Spending Benefits 2019-2020

Information about flexible spending benefits for City of Albuquerque employees.

With the Medical Reimbursement Account you can save 15 percent to 40 percent on your out-of pocket expenses that are not covered by the medical, dental or vision plans. Simply calculate your estimated expenses for the year and have that amount set aside in a Medical Reimbursement Account. The money is taken from your check before taxes, so you don’t pay most federal, state, Social Security and Medicare taxes on that amount.

How the Flexible Spending Works

A debit card will be issued to you if you sign up for the Flexible Spending Account. The debit card may be used to pay for eligible expenses. If you forget to use your debit card or if a vendor does not accept debit cards as a method of payment, you may pay for your expense out of pocket and submit a claim for reimbursement. BASIC will reimburse you via check or direct deposit (if you have signed up for direct deposit).

Plan Limit

Medical Reimbursement Account: Minimum is $260 ($10 per pay check per 26 pay periods). Maximum is $2,700 per eligible employee per year. If you and your spouse are employed by the City each can contribute $2,700.

The US Treasury Department has modified its Flexible Spending Account (FSA) “use-it-or-lose-it” provision to allow carryover of Flexible Spending Account funds.

This is great news for you, because:

  • You can carryover up to $500 of your unused Medical Reimbursement Account funds at the end of the plan year.
  • This eliminates the risk of losing Medical Reimbursement Account funds if you elect $500 or less. If you chose not to participate in the past because of the “use-it-or-lose-it” mandate, now is the time to take another look. The benefit will automatically take effect on your account should you decide to participate in the Medical Reimbursement Account.

Learn More

You can find more information at

The full amount of your Medical Reimbursement Account election is available on the first day of your plan year.

You should check with a tax advisor to see what your savings might be if you participate in the Flexible Spending Account program. Note that you are unable use certain tax credits if you use the Flexible Spending Account accounts.

Tax Savings Calculator

To use our calculator to estimate your tax savings when you choose to participate in the Flexible Spending Account, visit:

Eligible Flexible Spending Account medical expenses include:

  • Ambulance; crutches; eye glasses
  • Copays and deductibles
  • Nursing care; Physical Therapy
  • Orthodontics
  • Birth Control
  • Diabetic Supplies

For a reference of Flexible Spending Account eligible expenses, visit

Examples of ineligible health care expenses include cosmetic surgery, marriage counseling, and prepayment of services.

You must enroll each year if you want to continue participating in the Flexible Spending Account program.

*Employees or employees spouses who are contributing or receiving contributions into an HSA, are not permitted to participate in the Medical Reimbursement Account. Employees may still sign up for the Dependent Care Account.

More Information

For Questions: 800-444-1922 ext 1

Flexible Spending Accounts

Flexible Dependent Care Spending benefits for City of Albuquerque employees:

The Dependent Care Account allows you to set aside tax-free dollars for eligible day care expenses for your dependents. A Dependent Care Account is a great way to defer child care costs. Someone in a 15% tax bracket with the maximum $5,000 election would save $750 in one year using BASIC Flex. The Dependent Care Account is a pay-as-you-go account. You may only be reimbursed up to the amount you have contributed to the account.

Attention!  Important information if you are currently enrolled in the Flexible Spending Dependent Care Account.  If your day care provider has closed or if you have been sent home with pay or are working from home and no longer need dependent care services, then you are able to change your enrollment and stop or change your deductions for the Dependent Care Account.  The IRS views changes in day care providers, change in costs and change in coverage as qualified events.  Please email us at [email protected] or call us at 505-768-3758 if you need assistance changing your enrollment.

Flexible Parking & Transit benefits for City of Albuquerque employees:

You can also save money on your parking and transit costs (up to 40%) by joining the Parking and Transit Plan administered by BASIC. You can pay for your work-related parking and mass transit costs with tax-free dollars.

Parking and Transit Account limits:

  • Parking: $260 per month
  • Transit: $260 per month (Transit fare can only be paid using the debit card)

To receive reimbursement for non-city lot parking, claims must be submitted to BASIC within six months of incurring the expense. Reimbursements will be made via direct deposit.

For Parking at City-Owned Lots: Contact the Parking Division of the Municipal Development Department at 924-3950. By enrolling via the Parking Division, your monthly salary reduction will automatically be applied to your payment due for parking.

Basic Flexible Spending Accounts telephone numbers:

  • Customer Service (800) 444-1922
    • FSA Medical and Dependent Care ext. 229
    • Parking & Transit ext. 243