Page 13 - Guide
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Flexible Spending Account
Flexible Spending Accounts Medical FSA
You have the option to contribute to a medical or limited purpose The medical FSA lets you pay for
medical and/or dependent care lexible spending account (FSA). Money certain IRS-approved healthcare
contributed to these accounts will be deducted from your paycheck on expenses not covered by your
a pre-tax basis. There are three accounts from which you can choose to insurance plan with pre-tax
participate. OLB Systems will continue to be the administrator for the dollars. For example, after-tax
2017 plan year. dollars which you now spend
on deductibles, copayments, or
Why Should I Participate? other out-of-pocket medical
FSAs provide you with an important tax advantage that can help you pay expenses can instead be placed
healthcare and dependent care expenses on a pre-tax basis. By anticipating in the medical FSA pre-tax, to
your family’s healthcare and dependent care costs for the next year, you pay for these expenses. Due to
can actually lower your taxable income. requirements under the Patient
Protection and Affordable
How Does the Plan Work? Care Act, the maximum
Essentially, the Internal Revenue Service set up FSAs as a means to contribution to the healthcare
provide a tax break to employees. As an employee, you agree to set aside a reimbursement FSA for 2017 is
portion of your pre-tax salary in an account, and that money is deducted $2,600.
from your paycheck over the course of the year. The amount you Please note, if you participate in
contribute to the FSA is not subject to Social Security (FICA), federal, the HSA you cannot contribute to
state, or local income taxes—effectively adjusting your annual taxable the medical FSA. Instead, you are
salary. The taxes you pay each paycheck and collectively each year can be eligible to open a limited purpose
reduced signiicantly, depending on your tax bracket. And, as a result of medical FSA, which can be used
the personal tax savings you realize, your spendable income will increase. for dental and vision expenses
Please note you must make a new election each year; elections are only.
not carried forward. In addition, you may not
contribute to an HSA while
your spouse is contributing to a
medical FSA through his or her
employer.
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Flexible Spending Accounts Medical FSA
You have the option to contribute to a medical or limited purpose The medical FSA lets you pay for
medical and/or dependent care lexible spending account (FSA). Money certain IRS-approved healthcare
contributed to these accounts will be deducted from your paycheck on expenses not covered by your
a pre-tax basis. There are three accounts from which you can choose to insurance plan with pre-tax
participate. OLB Systems will continue to be the administrator for the dollars. For example, after-tax
2017 plan year. dollars which you now spend
on deductibles, copayments, or
Why Should I Participate? other out-of-pocket medical
FSAs provide you with an important tax advantage that can help you pay expenses can instead be placed
healthcare and dependent care expenses on a pre-tax basis. By anticipating in the medical FSA pre-tax, to
your family’s healthcare and dependent care costs for the next year, you pay for these expenses. Due to
can actually lower your taxable income. requirements under the Patient
Protection and Affordable
How Does the Plan Work? Care Act, the maximum
Essentially, the Internal Revenue Service set up FSAs as a means to contribution to the healthcare
provide a tax break to employees. As an employee, you agree to set aside a reimbursement FSA for 2017 is
portion of your pre-tax salary in an account, and that money is deducted $2,600.
from your paycheck over the course of the year. The amount you Please note, if you participate in
contribute to the FSA is not subject to Social Security (FICA), federal, the HSA you cannot contribute to
state, or local income taxes—effectively adjusting your annual taxable the medical FSA. Instead, you are
salary. The taxes you pay each paycheck and collectively each year can be eligible to open a limited purpose
reduced signiicantly, depending on your tax bracket. And, as a result of medical FSA, which can be used
the personal tax savings you realize, your spendable income will increase. for dental and vision expenses
Please note you must make a new election each year; elections are only.
not carried forward. In addition, you may not
contribute to an HSA while
your spouse is contributing to a
medical FSA through his or her
employer.
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