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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. If
you enroll in the HDHP medical plan, you may not contribute to the
healthcare FSA.
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 day 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 which are tax free, keeping more money in
your pocket, any unspent money will not be returned to you at the end of
the year.
DAWSON offers two FSAs, which both allow you to use the funds for
eligible expenses incurred between January 1, 2020 and December 31,
2020. You have until March 31, 2020 to ile claims incurred during
the 2020 calendar year. You will be permitted to roll over $500 of
your unused 2020 balance to your 2020 healthcare FSA as long as you
contribute at least $12 to your 2020 healthcare FSA.
Both 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 entire 2020 healthcare a FSA account balance
on once your election is made. You may only access funds from your
dependent care account which have been contributed each pay period.
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(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. If
you enroll in the HDHP medical plan, you may not contribute to the
healthcare FSA.
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 day 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 which are tax free, keeping more money in
your pocket, any unspent money will not be returned to you at the end of
the year.
DAWSON offers two FSAs, which both allow you to use the funds for
eligible expenses incurred between January 1, 2020 and December 31,
2020. You have until March 31, 2020 to ile claims incurred during
the 2020 calendar year. You will be permitted to roll over $500 of
your unused 2020 balance to your 2020 healthcare FSA as long as you
contribute at least $12 to your 2020 healthcare FSA.
Both 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 entire 2020 healthcare a FSA account balance
on once your election is made. You may only access funds from your
dependent care account which have been contributed each pay period.
Dawson 15
