Page 16 - Future Steps
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Flexible Spending Accounts
The other tax-favored spending accounts offered are the lexible spending account
(FSA) and the transportation account.
There are 4 types of FSAs—the Healthcare FSA, Limited FSA, Dependent Care
FSA, and Transit Account. Aetna will remain the administrator. If you enroll in the
Traditional Plan, or no medical plan, you are eligible to contribute to the Healthcare
Flexible Spending Account (FSA). If you participate in the High Deductible Plan
and are contributing to an HSA, you are not eligible to open a Healthcare FSA.
Instead, you are eligible to open a Limited FSA. All employees, regardless of medical
plan enrollment, are eligible to contribute to the Dependent Care FSA and Transit
Account. Similar to the HSA, FSAs provide you with an important tax advantage
that can help you pay healthcare and dependent care expenses on a pre-tax basis. By
anticipating your family’s healthcare and dependent care costs for the next year, you
can lower your taxable income.
How Do the Healthcare and Dependent Care Accounts Differ?
Healthcare FSA
The Healthcare FSA lets you pay for certain IRS-approved healthcare expenses not
covered by your insurance plan with pre-tax dollars. For example, money you spend
on deductibles, copayments, or other out-of-pocket medical expenses can instead
be placed in the Healthcare FSA pre-tax, to pay for these expenses. The maximum
amount you can contribute in 2017 is $2,600.
Please note if you participate in the Healthcare FSA, you cannot contribute to an
HSA.
Limited FSA
As previously stated, if you are participating in the High Deductible Plan and
contributing to an HSA, you may participate in a Limited FSA. This account is
designed to complement a health savings account and allows for reimbursement of
eligible dental and vision expenses that you may have. Similar to the Healthcare FSA,
you may contribute up to $2,600 in the Limited Account.
16
F+W, A Content + eCommerce Company
The other tax-favored spending accounts offered are the lexible spending account
(FSA) and the transportation account.
There are 4 types of FSAs—the Healthcare FSA, Limited FSA, Dependent Care
FSA, and Transit Account. Aetna will remain the administrator. If you enroll in the
Traditional Plan, or no medical plan, you are eligible to contribute to the Healthcare
Flexible Spending Account (FSA). If you participate in the High Deductible Plan
and are contributing to an HSA, you are not eligible to open a Healthcare FSA.
Instead, you are eligible to open a Limited FSA. All employees, regardless of medical
plan enrollment, are eligible to contribute to the Dependent Care FSA and Transit
Account. Similar to the HSA, FSAs provide you with an important tax advantage
that can help you pay healthcare and dependent care expenses on a pre-tax basis. By
anticipating your family’s healthcare and dependent care costs for the next year, you
can lower your taxable income.
How Do the Healthcare and Dependent Care Accounts Differ?
Healthcare FSA
The Healthcare FSA lets you pay for certain IRS-approved healthcare expenses not
covered by your insurance plan with pre-tax dollars. For example, money you spend
on deductibles, copayments, or other out-of-pocket medical expenses can instead
be placed in the Healthcare FSA pre-tax, to pay for these expenses. The maximum
amount you can contribute in 2017 is $2,600.
Please note if you participate in the Healthcare FSA, you cannot contribute to an
HSA.
Limited FSA
As previously stated, if you are participating in the High Deductible Plan and
contributing to an HSA, you may participate in a Limited FSA. This account is
designed to complement a health savings account and allows for reimbursement of
eligible dental and vision expenses that you may have. Similar to the Healthcare FSA,
you may contribute up to $2,600 in the Limited Account.
16
F+W, A Content + eCommerce Company
