Section 125

Flexible Spending Account (FSA)

The Section 125 plan lets you redirect a portion of your pay, through payroll deduction, to create a spending account for healthcare and/or dependent care expenses. The money that goes into your spending account(s) is deducted on a pre-tax basis. This means that the money is deducted from your pay before federal, state, and social security taxes are calculated. Because you do not pay these taxes on money that goes into your spending accounts, you decrease your taxable income and increase your take-home pay.

More Information

In estimating your election amounts for the medical, limited, and/or dependent care accounts, remember all expenses must be incurred between January 1, 2026 (or your hire date if after January 1, 2026) and December 31, 2026. Estimate conservatively, as unused funds at the end of the plan year are forfeited (lose-it-or-lose-it). To help estimate your annual FSA election, please refer to the Election Worksheet in the "Learn More" section below. Medical and Dependent Care amounts are not “transferable” between accounts. For a complete description of the plan, refer to the Flexible Spending Account Plan document in the "Learn More" section below.

How much money should you put into your spending account? That depends on your expenses. We recommend you review eligible expenses for the last few years to predict your expenses for 2026. During your enrollment, you’ll elect an annual contribution amount which will then be deducted from your paycheck in equal monthly installments.

Consider how much to put aside carefully; once you make your choices, your contributions will remain unchanged unless you experience a qualifying change in family status. The changes you request must be consistent with the status change event.

Newly-hired Employees

For newly hired employees, your elections should be calculated based on your anticipated expenses from your hire date through December 31, 2025. To determine your monthly contribution amount, divide your anticipated expenses by the number of months remaining in 2025, as applicable.
If you are hired in 2026, do the same for the 2026 calendar year.

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Surency Contact

Customer Service: 866-818-8805, choose the option for Surency Flex
Website: Surency.com

Qualifying Status Change

Examples
How to make a change to Dependent Care FSA mid-year

Examples

Qualifying Events

Marriage.
Divorce, legal separation, or annulment.
Birth or adoption of your child.
Death of your spouse or child.
Change in your or your spouse’s employment status.
Change in your number of tax dependents.
Change in your dependent’s eligibility (for example, your child reaches age 13) where he/she is no longer eligible under a Dependent Care Account.
Change in your child care/elder care provider or cost of coverage, such as a significant cost increase charged by your current day care provider, or a change in your day care provider. This applies to a Dependent Care Account only.

You can use the money in your reimbursement accounts only for expenses incurred in 2025.

Internal Revenue Service regulations prevent unused money in your accounts from being returned to you; any unused amounts are forfeited (i.e., “use it or lose it”).

As you plan, it is also important to remember your health care and dependent care spending accounts are separate. You cannot transfer money from one account to the other.

How to make a change to Dependent Care FSA mid-year

Section 125 Plan

Section 125 Plan Document

LSR7 Section 125 Options

Pretax Premium Payment

Tax Savings Through Pre-Tax Premiums

The first way to receive tax savings is to elect for your District-sponsored insurance premiums to be taken out of your paycheck pre-tax.

Your insurance premiums are paid directly to the insurance company, requiring no paperwork from you.

This election must be made during the online enrollment process and can be changed annually at open enrollment.

Medical Flexible Spending Account

Medical Flexible Spending Account (FSA)

HSA participants are NOT eligible for the Medical Flexible Spending Account but may establish a Limited FSA (see below).

The Medical FSA helps you pay for eligible health care expenses not covered by insurance; it does not replace an insurance plan, but it allows you to use pre-tax dollars for out-of-pocket health care services. The IRS limits contributions each year. The limit for 2025 was $3,300 per person. The limit for 2026 is $3,400 per person.

Any balance in the Medical FSA account on December 31 will NOT roll over to the following year. You have until March 31 of the following year to request reimbursement for prior year expenses. Any remaining funds are then forfeited.

The IRS limit is per person, not per family. If both spouses participate in their respective employer’s FSA plans, each cannot contribute more than the individual IRS limit.

Generally, any health expense (except for cosmetic procedures and insurance premiums) that is considered tax-deductible can be paid through your medical spending account. You can use your account to pay expenses for you, your spouse, and your eligible children, even if they are not enrolled in a Lee’s Summit School District medical plan. You can file claims for any amount up to your total annual contribution at any time during the year, even if that amount has not yet been withheld from your pay. You will receive reimbursement for your entire claim, and contributions will continue with each paycheck to cover the claim. A brief listing of common eligible expenses can be found at the top of this page.

If you are enrolled in a Section 125 Medical FSA for 2025 and enroll in a Health Savings Account (HSA) for 2026, you must have a $0 balance in your FSA as of December 31, 2025. Specific IRS regulations apply when FSA participants enroll in an HSA. For additional information, contact the District’s Benefits Specialist at (816) 986-1046.

Limited Flexible Spending Account

Limited FSA (ONLY for HDHP PPO Enrollees with HSA)

HDHP enrollees who contribute to a Health Savings Account (HSA) are ineligible to contribute to a regular Medical FSA, but may enroll in a Limited FSA. The Limited FSA allows reimbursement of you and your dependents’ dental and vision expenses only.

You can always use your HSA for dental and vision expenses (e.g., orthodontics, Lasik, etc.), but opening a Limited FSA can help maximize the savings potential of your HSA, or cover dental/vision expenses that exceed your HSA contribution limits.

Like the regular Medical FSA, the IRS limits contributions each year. The limit for 2025 was $3,300 per person. The limit for 2026 is $3,400 per person. Estimate conservatively, as unused funds at the end of the plan year are forfeited. Any balance in the Limited FSA account on December 31 will NOT roll over to the following year. You have until March 31 of the following year to request reimbursement for prior year expenses. Any remaining funds are then forfeited.

Dependent Care Flexible Spending Account

Dependent Care Flexible Spending Account (FSA)

The IRS limits contributions to a Dependent Care FSA each year. The limit has increased for 2026 to $7,500, or $3,750 if married and filing taxes separately. The “use it or lose it” rule applies. You may be enrolled in both a Dependent Care FSA and HSA.

You may choose a 9-month option (deductions from January–May and September–December) or a 12-month option (deductions from January–December).

Expenses paid through your Dependent Care FSA must be for the purpose of enabling you and your spouse to work or look for work, or for you to work while your spouse attends school full-time. Eligible dependents include children under age 13 or dependents not capable of self-care. If paying an individual caregiver, you must provide their name, address, and Social Security or Tax ID for reimbursement and IRS reporting purposes.

Reimbursement is limited to your current account balance. You may request reimbursement only for expenses incurred from January 1 through December 31 of the calendar year in which you enroll. Any remaining funds on December 31 are forfeited. You have until March 31 of the following year to request reimbursement for prior year expenses.

Reimbursements can be requested online, via email, fax, or mail to Surency if you cannot use the supplied debit card.

If you terminate employment with LSR7, you may submit claims for reimbursement within 90 days of your termination date for services incurred through the last day of the month in which your employment ended. Your debit card will stop working on your last day of employment.

Examples of Eligible Dependent Care Expenses

Costs for a day care center.
Costs for a caregiver for dependent care inside or outside your home.
Costs for day care provided to legally dependent adults who are physically or mentally unable to care for themselves (must spend a minimum of eight hours per day in your home).

Examples of Ineligible Dependent Care Expenses

Weekend, evening, and summer babysitting not work-related.
Nursing home expenses.
Amounts paid to an immediate family member under age 19 or to another dependent.
Tuition expenses for schooling beginning with the first grade.

Consult your tax adviser to determine whether the current dependent care income tax credit or the Dependent Care FSA is more beneficial based on your income and tax bracket.

LEARN MORE

Save Money with an HSA or FSA

SURENCY MOBILE APP

FAQ: FSA

FAQ: LIMITED FSA

SURENCY KNOWLEDGE CENTER

Discover Eligible Expenses

FAQ: DEPENDENT CARE FSA

ACCESSING YOUR FUNDS

BENEFITS OF SURENCY ACCOUNT

FIND A SURENCY FORM

LSR7 Benefit Stories

I cannot say enough good things about the Complete Health and Wellness Center! Every single time I have interacted with staff they have been welcoming and kind. I had a telehealth appointment scheduled and after talking through my concerns, Shelly Lynch had me come on in to the clinic for an in person exam so that she would be able to refer me on to additional services. The staff is accommodating, understanding, and very professional. What a great benefit for our LSR7 staff!

- Ashley Brouillette, Teacher, PVE

Erin Jensen helps me with any questions I have, it does not matter what it is!!! I have her in my phone for quick dial because she seriously is my "Go To" person! And if she does not know the answer, which by the way is not often, she will find out for me and get right back with me. She is awesome!!

- Debbie Griffey, Production Staff, HHE Cafeteria

I came to the CHWC with some symptoms that were fairly severe. Not only did the provider I saw take plenty of time to consider a variety of possible causes and remedies, but also offered help with follow-up questions and emailed me several resources. They called a week later to check on how I was doing and continued to offer support weeks after my initial visit. The care I received from the provider, nurses, and other staff at CHWC was far beyond any medical care and follow-up I have ever received.

- Sarah Courtney, Teacher, LSNHS

The drive-up COVID testing was easy and fast with a friendly nurse. And, the follow-up provided helpful, practical advice. I learned things about COVID from the Center's nurse practitioner that I'd never heard before elsewhere! The Wellness Center is a gr8 benefit to employees, and this is not my first positive experience. Through the annual health assessment report (and accompanying LSR7 Inspiring Balance Employee Wellbeing Program), I have improved most all of my "stats and digits."

- David Jackson, Admin Secretary, HPE

I've received great care here for a couple years, but started using them more for my kids as well. Yesterday my daughter woke up with extremely swollen lymph nodes in her neck, fever and sore throat. There were no appointments available so I messaged her provider asking if she could be squeezed in and THEY DID! We weren't treated like an after thought; Lisa was still very thorough and took the time needed to give a proper diagnosis."

- Jennifer Holbert, Admin Secretary, Nutrition Services

Erin Jensen has been so very patient and helpful in assisting me with all the necessary details to complete the new hire beneifts packet. I know that she (as well as others in the Beneifts department) are extremely busy processing important information for many others in the district, however, she in particular has been a "jewel"...Again, Thank you Erin, YOU ROCK!!

- Michell Owens, Teacher, LSNHS

The receptionist greeted me with a smile under her mask and she worked to get me in safely to the clinic. The nurse worked patiently to verify which lab work my doctor was requesting. I appreciate them working in a safe and friendly manner.

- Susan Murphy, Paraprofessional, GBEEC

Your specific rights to benefits under the Plans are governed solely, and in every respect, by the official Plan documents and insurance contracts, and not by information included in this website. If there is any discrepancy between the descriptions of the Plans as described on this website and the official Plan documents, the language of the documents shall govern. Lee’s Summit School District also specifically reserves the right to revise, modify or terminate the Plans at any time.