Page 15 - Guide
P. 15
Flexible Spending Accounts (FSA)
2016–2017 Beneits Enrollment
A great way to plan ahead and save money over the course of a year is to participate
in the lexible spending account (FSA) programs.
These accounts allow you to redirect a portion of your salary on a pre-tax basis into
reimbursement accounts. Money from these accounts is then used to pay medical
and dental expenses which are not reimbursed by your medical and dental plans or
dependent care expenses.
Pre-tax means the dollars you use for eligible expenses are not subject to Social
Security tax, federal income tax, and in more cases, state and local income taxes—
money you would have paid in taxes.
Spend wisely! FSA programs allow you to pay for qualiied expenses from
contributions which are tax free, keeping more money in your pocket.
Under the healthcare FSA, you can use the funds for eligible expenses incurred
between January 1, 2017 and December 31, 2017. You will have a 75-day grace
period (until March 15) to use the funds which were deposited in your FSA in 2016.
Dependent care expenses are for eligible expenses incurred between January 1, 2017
and December 31, 2017. All of the accounts are subject to an IRS “use it or lose it”
requirement, so make sure to carefully decide how much to set aside for this account.
Reminder! Over-the-counter (OTC) medications are not eligible healthcare FSA
expenses. Check with your FSA vendor for any exceptions to this rule, such as a
prescription being written for an OTC medication.
Account Use For Contribution
Healthcare FSA Most medical, dental, and vision $100 annual minimum
care expenses not covered under $2,550 annual maximum
the plan (i.e., copays, deductibles,
orthodontia expenses, Lasik surgery, and
prescription eyewear)
Dependent Care FSA Dependent care expenses (i.e., daycare, $100 annual minimum
after school programs for children under $5,000 annual maximum
age 13, or elder care programs) so you
and your spouse can work or attend
school full-time.*
* Tax ID or Social Security number of care giver is required for eligible charges.
15
2016–2017 Beneits Enrollment
A great way to plan ahead and save money over the course of a year is to participate
in the lexible spending account (FSA) programs.
These accounts allow you to redirect a portion of your salary on a pre-tax basis into
reimbursement accounts. Money from these accounts is then used to pay medical
and dental expenses which are not reimbursed by your medical and dental plans or
dependent care expenses.
Pre-tax means the dollars you use for eligible expenses are not subject to Social
Security tax, federal income tax, and in more cases, state and local income taxes—
money you would have paid in taxes.
Spend wisely! FSA programs allow you to pay for qualiied expenses from
contributions which are tax free, keeping more money in your pocket.
Under the healthcare FSA, you can use the funds for eligible expenses incurred
between January 1, 2017 and December 31, 2017. You will have a 75-day grace
period (until March 15) to use the funds which were deposited in your FSA in 2016.
Dependent care expenses are for eligible expenses incurred between January 1, 2017
and December 31, 2017. All of the accounts are subject to an IRS “use it or lose it”
requirement, so make sure to carefully decide how much to set aside for this account.
Reminder! Over-the-counter (OTC) medications are not eligible healthcare FSA
expenses. Check with your FSA vendor for any exceptions to this rule, such as a
prescription being written for an OTC medication.
Account Use For Contribution
Healthcare FSA Most medical, dental, and vision $100 annual minimum
care expenses not covered under $2,550 annual maximum
the plan (i.e., copays, deductibles,
orthodontia expenses, Lasik surgery, and
prescription eyewear)
Dependent Care FSA Dependent care expenses (i.e., daycare, $100 annual minimum
after school programs for children under $5,000 annual maximum
age 13, or elder care programs) so you
and your spouse can work or attend
school full-time.*
* Tax ID or Social Security number of care giver is required for eligible charges.
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