Tax$ave Accounts
Medical Benefit Horizon MyWay manages Tax$ave Flexible Spending Accounts for both Horizon and Aetna participants.
Tax$ave, allows eligible employees of the State of New Jersey to set aside pre-tax dollars to pay for certain medical, dental, and dependent care expenses, thereby avoiding federal taxes and saving money.
An eligible employee is any full-time employee of the State, or a State college or university, who is eligible to participate in the State Health Benefits Program (SHBP) through Horizon Blue Cross Blue Shield of NJ (Horizon) or Aetna.
Tax$ave consists of three separate component plans. An eligible employee may elect to participate in any combination—all, some, or none of the plans.
Flexible Spending Account
Effective 01/01/27, the unreimbursed Medical Flexible Spending Account (FSA) annual contribution limit will follow the Internal Revenue Service (IRS) annual inflation limits. The minimum yearly deposit remains the same at $100.
The unreimbursed Medical FSA allows members to put aside pre-tax money throughout the year to pay for eligible medical and dental expenses, which are determined by the IRS.
Employees must enroll annually to participate in the FSA during Open Enrollment and are not able to change their contributions once enrollment closes unless there is a qualifying life event.
For more information and access to the enrollment form, log in to mynjbenefitshub to view the Tax$ave page.
The three components of Tax$ave are:
- The Premium Option Plan (POP) allows an employee to pay any SHBP medical and/or dental payroll contributions or premiums with before-tax dollars.
- The Unreimbursed Medical Flexible Spending Account (FSA) allows an employee to set aside money to pay for anticipated medical services and medical supply expenses not normally covered by insurance.
- The Dependent Care FSA is a pre-tax benefit account used to pay eligible dependent care services, such as preschool, summer day camp, before or after-school programs, and child or adult daycare.
NJDPB Tax$ave FSA Administered by Horizon MyWay®
Horizon MyWay gives you more control of your health care and dependent care spending.
A Flexible Spending Account (FSA) is an account you can use for out-of-pocket medical and dependent care expenses. You can contribute to FSAs pre-tax, and the funds can be used to pay for qualified expenses not paid for by your health plan.
Available to all eligible employees of State of NJ.
Click on Learn more and select: Tax$ave & Commuter Tax$ave
Ways You Can Save With Tax$ave
A Flexible Spending Account (FSA) is an account you set up for your anticipated eligible out-of-pocket expenses.
Medical
A Medical FSA is an account you set up for your anticipated eligible medical services and medical supply expenses not normally covered by your insurance. These expenses can be incurred by yourself, your spouse, or a qualifying child or relative.
Is it right for you?
You'd like to supplement your health care savings pre-tax to pay for qualified out-of-pocket medical, dental, orthodontia, vision, and prescription expenses.
For 2027, the Unreimbursed Medical FSA election limit is currently set at $3,400, pending official IRS guidance. Once announced, the election limit will adjust to match the final IRS limit.
Dependent Care
A Dependent Care FSA is a pre-tax benefit account used to pay eligible dependent care services, such as preschool, summer day camp, before or after-school programs, and child or adult daycare.
Is it right for you?
You have a qualifying child under 13 years old—or a relative who isn't physically or mentally capable of caring for themselves—who lives with you for more than half the year.
Participants can set aside up to $5,000 annually.
Note: In order to comply with IRS non-discrimination testing requirements for the entire plan, contributions of highly compensated individuals (currently set by the IRS as earning $165,000 or more) may be adjusted downward by the State during the Plan Year 2027 to meet IRS requirements.
Commuter
For the 2026 calendar year, eligible employees may execute salary reduction agreements to have up to:
- $340 per month ($4,080 per year) for both transit and parking benefits.
The pretax limits above are subject to change. The pretax limits for 2027 will be provided once available.
While this site is a tool to answer most of your questions, full details of the plan are contained in the Summary Plan Descriptions (SPDs), which govern each plan’s operation. Whenever an interpretation of a plan benefit is necessary, the actual plan document will be used.