Page 41 - 2022 AEO Benefit Guide

• If you don’t use the entire amount in the H.R.A. during the year, the balance
will roll over to the next year (as long as you remain in the Cigna Open Access H.R.A.
Plus HRA Plan back-to-back years), up to a maximum of $2,500/single or
$5,000/family. This ensures that you have the money in your H.R.A. when DEBIT CARDS
you truly need it. All Associates enrolled in the
• AEO sets up the H.R.A. automatically for all Associates enrolled in the Cigna HRA plan will receive a debit
Open Access Plus HRA Plan. Only AEO is permitted to fund the account. card to manage HRA funds.
You will not be able to fund the account with your own money.
• The account doesn’t count as taxable income to you.
• If you choose to enroll in a different plan for a year and had a balance
remaining in your H.R.A., the balance will be forfeited and the account will
be reset to $0 for the year that you are not enrolled in the plan.If you choose
to enroll in the Cigna Open Access Plus HRA plan the following year, your
balance will have the annual AEO contribution amount, which is currently
$500/single or $1,000/family.
• The Health Reimbursement Account is an employer-owned account. It is
not portable, so this money will stay with AEO if you separate employment
with AEO.

Healthcare Flexible Spending

Account (FSA) and Limited Purpose
Flexible Spending Account (LFSA) BUDGET

AEO offers a healthcare flexible spending account (FSA) option to Associates who
enroll into the Cigna Open Access Plus Plan and the Cigna Open Access Plus
HRA Plan. We also offer a Limited Purpose Flexible Spending Account (LFSA) option
to Associates who enroll into the Cigna HSA Plan or Cigna Economy HSA Plan.
An FSA allows you to pay for eligible medical, dental, vision and prescription
drug services with pre-tax dollars. An LFSA allows you to pay for eligible dental and
vision service with pre-tax dollars, but NOT medical or prescription drug services.

How a Healthcare FSA and Limited Purpose FSA Work

• The plan year begins on January 1st.
• At the time of your enrollment, you must decide how much money you
want to put into your account for that year. You can elect to have any amount
between $260 (minimum) and $2,850 (IRS federal maximum) as your annual
goal amount. NOTE: Based on IRS guidelines, Associates earning more
than $135,000 in annual compensation may not be eligible to contribute
the maximum each year. During an annual FSA audit, Associates affected
by IRS regulation will be notified and payroll deductions may be reduced.
• The annual amount you choose to defer will be divided by the number of
pay periods available in the current plan year. Payroll deductions will begin
after your enrollment is processed, and contributions will be credited to
your FSA or LFSA (administered by Health Equity / WageWorks).

• You pay for eligible expenses directly with your Health Equity / WageWorks
debit card. If you pay out of pocket you will then file your claim and applicable
receipts with Health Equity / WageWorks for reimbursement. You will receive
reimbursement directly from Health Equity / WageWorks.
FULL TIME BENEFITS — BUDGET 39