Page 12 - OE Guide
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Flexible Spending Accounts (FSA)
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, dental, and vision expenses which are not reimbursed by your medical, dental, and
vision plans. You may also set aside pre-tax funds to reimburse dependent care expense.
Pre-tax means the dollars you use for eligible expenses are not subject to Social Security tax, federal income tax, and in most
cases, state, and local income taxes—money you would have paid in taxes.
Spend Wisely! While FSA programs allow you to pay for qualiied expenses from contributions that are tax free, keeping more
money in your pocket, any unspent money will not be returned to you at the end of the year.
Under all three of the FSAs, you can use the funds for eligible expenses incurred between January 1, 2016 and
December 31, 2016. You have until March 31, 2017 to ile claims incurred during the 2016 calendar year.
All three of these 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.
You have access to your 2016 healthcare and limited purpose FSA account balance on January 1, 2016. You may
only access funds from your dependent care account that have been contributed each pay period.
Account Use For Contribution
Healthcare Most medical, dental, and vision care expenses not covered under the plan (e.g., $2,550 annual maximum
FSA copays, deductibles, orthodontia expenses, lasik surgery, and prescription eyewear).
May be used for eligible dependents regardless of whether they are covered under a
Franke beneit plan.
Limited Dental and vision expenses for participants electing the choice fund HSA plan. May be $2,550 annual maximum
purpose FSA used for eligible dependents regardless of whether they are covered under a Franke
beneit plan.
Dependent Dependent day care expenses (e.g., daycare, after school programs for children under $5,000 annual
care FSA age 13, or elder care programs for your legal tax dependents) so you and your spouse maximum; $2,500
can work or attend school full-time. if married and iling
separate tax returns
Important! If you elect the Choice Fund HSA Plan, you may only participate in the Limited Purpose Flexible Spending
Account. This account is designed to compliment an HSA and allows for reimbursement of eligible dental and vision expenses
that you may have. You may also contribute to the Dependent Care FSA.
Franke
Flexible Spending Accounts (FSA)
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, dental, and vision expenses which are not reimbursed by your medical, dental, and
vision plans. You may also set aside pre-tax funds to reimburse dependent care expense.
Pre-tax means the dollars you use for eligible expenses are not subject to Social Security tax, federal income tax, and in most
cases, state, and local income taxes—money you would have paid in taxes.
Spend Wisely! While FSA programs allow you to pay for qualiied expenses from contributions that are tax free, keeping more
money in your pocket, any unspent money will not be returned to you at the end of the year.
Under all three of the FSAs, you can use the funds for eligible expenses incurred between January 1, 2016 and
December 31, 2016. You have until March 31, 2017 to ile claims incurred during the 2016 calendar year.
All three of these 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.
You have access to your 2016 healthcare and limited purpose FSA account balance on January 1, 2016. You may
only access funds from your dependent care account that have been contributed each pay period.
Account Use For Contribution
Healthcare Most medical, dental, and vision care expenses not covered under the plan (e.g., $2,550 annual maximum
FSA copays, deductibles, orthodontia expenses, lasik surgery, and prescription eyewear).
May be used for eligible dependents regardless of whether they are covered under a
Franke beneit plan.
Limited Dental and vision expenses for participants electing the choice fund HSA plan. May be $2,550 annual maximum
purpose FSA used for eligible dependents regardless of whether they are covered under a Franke
beneit plan.
Dependent Dependent day care expenses (e.g., daycare, after school programs for children under $5,000 annual
care FSA age 13, or elder care programs for your legal tax dependents) so you and your spouse maximum; $2,500
can work or attend school full-time. if married and iling
separate tax returns
Important! If you elect the Choice Fund HSA Plan, you may only participate in the Limited Purpose Flexible Spending
Account. This account is designed to compliment an HSA and allows for reimbursement of eligible dental and vision expenses
that you may have. You may also contribute to the Dependent Care FSA.
Franke
