Page 18 - CPS Benefits Guide
P. 18
Flexible Spending Accounts
(FSA)
What is an FSA?
A lexible spending account (FSA) allows you to set aside pre-tax dollars
from your paycheck to cover qualiied expenses you would normally pay
out of your pocket with after-tax dollars. We offer two types of lexible
spending account programs through ADP.
Healthcare FSA
The healthcare FSA helps you pay for certain IRS-approved medical care
expenses not covered by your insurance plan with pre-tax dollars. For
example, cash which you now 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 2017 maximum individual
contribution to the healthcare FSA is $2,600 per plan year.
Funds you elect to contribute are available to the healthcare FSA in full
on the irst day of the plan year. For example, if you elect to contribute
$1,000, the full election is available on day 1. You will continue to pay for
the election pre-tax from your paycheck throughout the plan year.
You can roll over up to $500 of unused FSA dollars into your account
to use next year. The amount you rollover is in addition to your regular
annual election. Funds will not roll over to the next calendar year until
after the March 31 claims run out period.
Dependent Care FSA
The dependent care FSA lets you set aside pre-tax dollars to use toward
qualiied dependent care. The maximum amount you may contribute
to the dependent care FSA is $5,000 (or $2,500 if married and iling
separately) per plan year. Unlike the healthcare FSA, funds you contribute
to the dependent care FSA function like a debit card, you need to
accumulate the funds before you can use them.
18 2017 Benefits Enrollment
(FSA)
What is an FSA?
A lexible spending account (FSA) allows you to set aside pre-tax dollars
from your paycheck to cover qualiied expenses you would normally pay
out of your pocket with after-tax dollars. We offer two types of lexible
spending account programs through ADP.
Healthcare FSA
The healthcare FSA helps you pay for certain IRS-approved medical care
expenses not covered by your insurance plan with pre-tax dollars. For
example, cash which you now 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 2017 maximum individual
contribution to the healthcare FSA is $2,600 per plan year.
Funds you elect to contribute are available to the healthcare FSA in full
on the irst day of the plan year. For example, if you elect to contribute
$1,000, the full election is available on day 1. You will continue to pay for
the election pre-tax from your paycheck throughout the plan year.
You can roll over up to $500 of unused FSA dollars into your account
to use next year. The amount you rollover is in addition to your regular
annual election. Funds will not roll over to the next calendar year until
after the March 31 claims run out period.
Dependent Care FSA
The dependent care FSA lets you set aside pre-tax dollars to use toward
qualiied dependent care. The maximum amount you may contribute
to the dependent care FSA is $5,000 (or $2,500 if married and iling
separately) per plan year. Unlike the healthcare FSA, funds you contribute
to the dependent care FSA function like a debit card, you need to
accumulate the funds before you can use them.
18 2017 Benefits Enrollment
