Page 18 - GLG 2021 Annual Benefits
P. 18
Flexible Spending Accounts (FSAs) (continued)
Limited Purpose Healthcare Flexible Spending Account
Employees who choose to enroll in the HSA plan are eligible to participate in a Limited Purpose FSA Plan.
Eligible FSA expenses incurred while you are contributing to the HSA will only be reimbursed for the following
(so plan your FSA goal amounts carefully if you are participating in the HSA):
> Dental Care
> Vision Care (including prescription eyeglasses and contact lenses)
Limited Purpose FSA and Healthcare FSA Contribution Limits
You can contribute up to $2,750 to your Healthcare and Limited Purpose FSA in 2021. GLG’s open enrollment
period will take place in November for the plan year beginning January 1 through December 31.
For the Healthcare FSA, your entire annual contribution amount is available immediately at the beginning of the
plan year to pay for eligible healthcare expenses. However, your total FSA election amount is deducted from your
paycheck in equal amounts during the year. So, if you decide to contribute $2,000 for the year, you can use that
amount right away. Please note that you can only rollover up to $550 of unused HCFSA contributions that remain
at the end of the plan year. In addition, such carryovers will not count against the annual limit.
The beneit to you is that the funds are set aside on a pre-tax basis. Below is an example of what this might
mean for an employee earning $50,000 a year.
No FSA With an FSA
Employee Annual Salary $50,000 $50,000
Contribution to Healthcare FSA $0 $2,000
Taxable Salary $50,000 $48,000
Employee Tax Rate 30% 30%
Estimated Taxes $15,000 $14,400
Savings to Employee $0 $600
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Limited Purpose Healthcare Flexible Spending Account
Employees who choose to enroll in the HSA plan are eligible to participate in a Limited Purpose FSA Plan.
Eligible FSA expenses incurred while you are contributing to the HSA will only be reimbursed for the following
(so plan your FSA goal amounts carefully if you are participating in the HSA):
> Dental Care
> Vision Care (including prescription eyeglasses and contact lenses)
Limited Purpose FSA and Healthcare FSA Contribution Limits
You can contribute up to $2,750 to your Healthcare and Limited Purpose FSA in 2021. GLG’s open enrollment
period will take place in November for the plan year beginning January 1 through December 31.
For the Healthcare FSA, your entire annual contribution amount is available immediately at the beginning of the
plan year to pay for eligible healthcare expenses. However, your total FSA election amount is deducted from your
paycheck in equal amounts during the year. So, if you decide to contribute $2,000 for the year, you can use that
amount right away. Please note that you can only rollover up to $550 of unused HCFSA contributions that remain
at the end of the plan year. In addition, such carryovers will not count against the annual limit.
The beneit to you is that the funds are set aside on a pre-tax basis. Below is an example of what this might
mean for an employee earning $50,000 a year.
No FSA With an FSA
Employee Annual Salary $50,000 $50,000
Contribution to Healthcare FSA $0 $2,000
Taxable Salary $50,000 $48,000
Employee Tax Rate 30% 30%
Estimated Taxes $15,000 $14,400
Savings to Employee $0 $600
18
