Page 10 - Future Steps
P. 10
Flexible Spending Healthcare FSA
Accounts The Healthcare FSA lets you pay for certain IRS approved
medical, prescription drug, dental, and vision care expenses
Employees have the option to contribute to a not covered by your insurance plan with pre-tax dollars. For
healthcare spending account and/or a dependent care example, cash you now spend on deductibles, copayments,
lexible spending account (FSA), administered by or other out-of-pocket medical expenses can instead be
UnitedHealthcare. Remember, employees who open placed in the Healthcare FSA to pay for these expenses.
and contribute to a HSA are not eligible to enroll in The maximum contribution to the Healthcare FSA is
the Healthcare Flexible Spending Account due to $2,600 per plan year. Some examples of eligible expenses
IRS regulations. Employees who enroll will receive two are:
identical MasterCard debit cards. X Copays, deductible, coinsurance for medical, dental,
®
and vision plans
An FSA allows you to set aside pre-tax dollars from your
paycheck to cover qualiied expenses which you would X Prescriptions
normally pay out-of-pocket, with after-tax dollars. The X Eyeglasses and contacts
funds you agree to set aside are available to you on day X First aid supplies
one, but are deducted from your paycheck over the course X
of the year. The amount you contribute to the FSA is not Smoking cessation products (prescription only)
subject to Social Security (FICA), federal, state, or local Reminder: due to Health Reform, you must have a
income taxes—effectively adjusting your annual taxable prescription to purchase over the counter medicine using
salary. your FSA.
Please remember to plan carefully when determining your Dependent Care FSA
contribution amount. Any money left in your account at
the end of the plan year cannot be rolled over to the next The Dependent Care FSA lets you use pre-tax dollars
year or paid out to you. Your plan allows an extension towards qualiied dependent care. The maximum amount
of up to 2½ months into the following plan year, called you may contribute to the Dependent Care FSA is $5,000
the grace period, to help you spend your Healthcare FSA (or $2,500 if married and iling separately) per plan year.
funds. Any excess amount after the grace period is forfeited Some examples of eligible expenses are as follows.
to the plan. X Cost of child or adult daycare*
Remember you must make a new contribution X Nursery school
election every year—elections do not roll over from X Preschool (excluding kindergarten)
year to year. * An eligible dependent is a tax dependent child under age 13 or a tax
dependent spouse, parent, or child unable to care for themselves.
10 Electric Power Systems
Accounts The Healthcare FSA lets you pay for certain IRS approved
medical, prescription drug, dental, and vision care expenses
Employees have the option to contribute to a not covered by your insurance plan with pre-tax dollars. For
healthcare spending account and/or a dependent care example, cash you now spend on deductibles, copayments,
lexible spending account (FSA), administered by or other out-of-pocket medical expenses can instead be
UnitedHealthcare. Remember, employees who open placed in the Healthcare FSA to pay for these expenses.
and contribute to a HSA are not eligible to enroll in The maximum contribution to the Healthcare FSA is
the Healthcare Flexible Spending Account due to $2,600 per plan year. Some examples of eligible expenses
IRS regulations. Employees who enroll will receive two are:
identical MasterCard debit cards. X Copays, deductible, coinsurance for medical, dental,
®
and vision plans
An FSA allows you to set aside pre-tax dollars from your
paycheck to cover qualiied expenses which you would X Prescriptions
normally pay out-of-pocket, with after-tax dollars. The X Eyeglasses and contacts
funds you agree to set aside are available to you on day X First aid supplies
one, but are deducted from your paycheck over the course X
of the year. The amount you contribute to the FSA is not Smoking cessation products (prescription only)
subject to Social Security (FICA), federal, state, or local Reminder: due to Health Reform, you must have a
income taxes—effectively adjusting your annual taxable prescription to purchase over the counter medicine using
salary. your FSA.
Please remember to plan carefully when determining your Dependent Care FSA
contribution amount. Any money left in your account at
the end of the plan year cannot be rolled over to the next The Dependent Care FSA lets you use pre-tax dollars
year or paid out to you. Your plan allows an extension towards qualiied dependent care. The maximum amount
of up to 2½ months into the following plan year, called you may contribute to the Dependent Care FSA is $5,000
the grace period, to help you spend your Healthcare FSA (or $2,500 if married and iling separately) per plan year.
funds. Any excess amount after the grace period is forfeited Some examples of eligible expenses are as follows.
to the plan. X Cost of child or adult daycare*
Remember you must make a new contribution X Nursery school
election every year—elections do not roll over from X Preschool (excluding kindergarten)
year to year. * An eligible dependent is a tax dependent child under age 13 or a tax
dependent spouse, parent, or child unable to care for themselves.
10 Electric Power Systems
