Page 26 - 2018 Carlstar Benefit Guide
P. 26
26 BENEFITS ENROLLMENT • 2018
Flexible Spending Account (FSA)
(continued)
Dependent Care FSA
The Dependent Care FSA plan allows you to You may contribute $5,000 annually (or up to
make pretax contributions from your pay to an $2,500 if married and filing separate tax returns).
account designated to reimburse you for eligible There may be other circumstances where your
dependent care expenses such as child day care, contributions are limited.
adult dependent day care, dependent care centers,
and preschool expenses. Your contributions are Keep in mind the Dependent Care FSA is for
deducted from your pay before federal income dependent day care expenses for your eligible
taxes, Social Security taxes and, in most states, dependents whose care you must pay so you and
before state income taxes are withheld. your spouse can work or look for work.
Notes To Understand for Flexible Spending Accounts
X You should also keep in mind expenses incurred BEFORE
participation begins are NOT ELIGIBLE.
X Expenses incurred for a Healthcare FSA AFTER participation
ends are NOT ELIGIBLE (for a Dependent Care FSA, you can
submit claims incurred through the remainder of the year in
which participation ended).
X “Use it or lose it”—carefully review your personal situation
before enrolling in Healthcare or Dependent Care accounts.
The IRS requires you forfeit any unused money remaining in
your reimbursement accounts at the end of the calendar year
grace period.
Flexible Spending Account (FSA)
(continued)
Dependent Care FSA
The Dependent Care FSA plan allows you to You may contribute $5,000 annually (or up to
make pretax contributions from your pay to an $2,500 if married and filing separate tax returns).
account designated to reimburse you for eligible There may be other circumstances where your
dependent care expenses such as child day care, contributions are limited.
adult dependent day care, dependent care centers,
and preschool expenses. Your contributions are Keep in mind the Dependent Care FSA is for
deducted from your pay before federal income dependent day care expenses for your eligible
taxes, Social Security taxes and, in most states, dependents whose care you must pay so you and
before state income taxes are withheld. your spouse can work or look for work.
Notes To Understand for Flexible Spending Accounts
X You should also keep in mind expenses incurred BEFORE
participation begins are NOT ELIGIBLE.
X Expenses incurred for a Healthcare FSA AFTER participation
ends are NOT ELIGIBLE (for a Dependent Care FSA, you can
submit claims incurred through the remainder of the year in
which participation ended).
X “Use it or lose it”—carefully review your personal situation
before enrolling in Healthcare or Dependent Care accounts.
The IRS requires you forfeit any unused money remaining in
your reimbursement accounts at the end of the calendar year
grace period.
