Page 17 - Guide
P. 17
Flexible Spending Accounts
Why Section 125 Flexible Spending Healthcare FSA
(Reimbursement) Accounts? A healthcare FSA provides you
Fontbonne University sponsors a Section 125 lexible spending plan with the ability to save money on a
which lets you redirect a portion of your pay through payroll deduction pre-tax basis for any IRS-allowed
into healthcare and dependent care reimbursement accounts. You may health expenses not covered by
be reimbursed from your accounts as you incur eligible dependent care your healthcare coverage. These
expenses as well as expenses not covered by health, dental, or vision expenses include deductibles,
insurance. The money which goes into your FSAs is deducted on a pre- copays and coinsurance payments,
tax basis, which means it is deducted from your pay before federal and routine physicals, uninsured dental
Social Security taxes are calculated. Because you do not pay taxes on expenses, vision care expenses
money which goes into your FSA, you decrease your payroll tax liability (e.g., eyeglasses or contact lenses),
and potentially reduce your Federal income tax liability, thus increasing and hearing care expenses (e.g., a
your net money. hearing exam or a hearing aid).
How do FSA Contributions Work? BeneFLEX is the third party
How much money should you put into your accounts each pay period? administrator for our FSA plans.
That depends on your eligible expenses. The best way to estimate your Per IRS guidelines, you may
expenses for the upcoming year is by looking over the eligible expenses deposit up to $2,600 (pre-tax)
you incurred over the past few years. Divide the total predictable expenses for the 2017 plan year into
by the number of pay periods in the plan year. The resulting number your healthcare FSA to cover
represents the amount you should consider contributing each pay period you and your dependents
to your reimbursement accounts. If, at the end of the plan year, you have during the plan year. Pre-tax
unused funds remaining in your FSA, Fontbonne will allow you to roll- contributions are withheld from
over up to $500 to be used on qualiied medical expenses in the next year. each paycheck. It is important
to estimate carefully; if your
FSA balance exceeds $500 on
December 31, 2017, anything
over $500 will be forfeited.
17
Why Section 125 Flexible Spending Healthcare FSA
(Reimbursement) Accounts? A healthcare FSA provides you
Fontbonne University sponsors a Section 125 lexible spending plan with the ability to save money on a
which lets you redirect a portion of your pay through payroll deduction pre-tax basis for any IRS-allowed
into healthcare and dependent care reimbursement accounts. You may health expenses not covered by
be reimbursed from your accounts as you incur eligible dependent care your healthcare coverage. These
expenses as well as expenses not covered by health, dental, or vision expenses include deductibles,
insurance. The money which goes into your FSAs is deducted on a pre- copays and coinsurance payments,
tax basis, which means it is deducted from your pay before federal and routine physicals, uninsured dental
Social Security taxes are calculated. Because you do not pay taxes on expenses, vision care expenses
money which goes into your FSA, you decrease your payroll tax liability (e.g., eyeglasses or contact lenses),
and potentially reduce your Federal income tax liability, thus increasing and hearing care expenses (e.g., a
your net money. hearing exam or a hearing aid).
How do FSA Contributions Work? BeneFLEX is the third party
How much money should you put into your accounts each pay period? administrator for our FSA plans.
That depends on your eligible expenses. The best way to estimate your Per IRS guidelines, you may
expenses for the upcoming year is by looking over the eligible expenses deposit up to $2,600 (pre-tax)
you incurred over the past few years. Divide the total predictable expenses for the 2017 plan year into
by the number of pay periods in the plan year. The resulting number your healthcare FSA to cover
represents the amount you should consider contributing each pay period you and your dependents
to your reimbursement accounts. If, at the end of the plan year, you have during the plan year. Pre-tax
unused funds remaining in your FSA, Fontbonne will allow you to roll- contributions are withheld from
over up to $500 to be used on qualiied medical expenses in the next year. each paycheck. It is important
to estimate carefully; if your
FSA balance exceeds $500 on
December 31, 2017, anything
over $500 will be forfeited.
17
