Page 42 - 2022 AEO Benefit Guide

• AEO allows participants to have “CarryOver” with their FSA and LFSAs.
This allows you to “CarryOver” up to $570 into the next plan year.
• Due to legislation related to the pandemic, all unused funds from 2021
were permitted to “CarryOver” into 2022. Funds in 2022 will be limited to
having $570 “CarryOver” into 2023, so it is important that funds above $570
are completely used in 2022. The IRS requires that any unused amount
exceeding the CarryOver threshold not be paid to you or carried over;
these funds are lost if they are not used.
• If you leave AEO, your account will not continue and you will only be able to
submit expenses for the time frame in which you were employed by AEO. You
will have 90 days from your termination date to submit reimbursements. After
the 90-day period, your account will be closed, unless you choose to continue
your healthcare FSA under COBRA. Continuing your FSA under COBRA would
require monthly post-tax payments plus a 2% administrative charge, which
eliminates the pre-tax benefit structure, but would enable continued access
to the account.

How to Enroll in the FSA or LFSA

Enroll online (when enrolling in your health insurance coverage) prior to your
benefits effective date. You can enroll in a Health Care Flexible Spending
Account. If you are not electing AEO coverage and are not enrolled in a
Health Savings Account through another employer OR if you are enrolling in the
Cigna Open Access Plus Plan or the Cigna Open Access Plus HRA Plan. You can
only enroll in the LFSA if you are enrolling in the Cigna HSA Plan or the Cigna
Economy HSA Plan. You will then receive a complete packet of information from
Health Equity / WageWorks explaining how the plan works. If you have questions
prior to enrolling, you may call Health Equity / WageWorks at 1.877.924.3967.

Dependent Care

Flexible Spending Account

The Dependent Care Account allows you to save tax dollars on your qualified
dependent care expenses such as daycare expenses for a child under age 13; elder
day care for a spouse or other tax dependent who is physically or mentally incapable
of self-care; summer day camp, and more. You can determine how much you want
deducted from your paycheck on a pre-tax basis, and then reimburse yourself for
those expenses as they arise.

How It Works
• The plan year begins on January 1st.
• At the time of your enrollment, you decide how much money you want to put
into your account for that year. You can elect to have any amount between
$500 (minimum) and $5000 (IRS federal maximum) as your annual goal
amount. If you are married and file a joint tax return, your combined
maximum election amount is $5,000. If you are married but filing separate
tax returns, the maximum amount is $2,500.
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 audit, Associates affected by IRS regulation
will be notified and payroll deductions may be reduced.
40 AMERICAN EAGLE OUTFITTERS, INC.