Page 17 - 2022 CAPREIT Benefits Guide

Flexible Spending Accounts

Flexible Spending Accounts (FSAs) are designed to save you money on your taxes.
They work in a similar way to a savings account. Each pay period, funds are deducted
from your pay on a pre-tax basis and credited to a Health Care and/or Dependent
Care FSA. You then use your funds to pay for eligible health care or dependent care
expenses.

Loomis

Annual
Account
Type Eligible Expenses Contribution Benefit
Limits
What are the advantages of
Most medical, dental and Maximum Saves on eligible an FSA?
vision care expenses that contribution is expenses not
are not covered by your $2,850 per year covered by With an FSA, the money you contribute
Health Care health plan (such as insurance; is never taxed—not when you put it in
FSA copayments, coinsurance, reduces your
deductibles, eyeglasses and taxable income the account, not when you are
doctor-prescribed over the reimbursed with the funds from the
counter medications) account, and not when you file your

Dependent care expenses Maximum Reduces your income tax return at the end of the
(such as day care, after contribution is taxable income year
Dependent
Care school programs or elder $5,000 per year
($2,500 if married
care programs) so you and
(Caregiving) your spouse can work or and filing
FSA
attend school full-time separate tax
returns)
FSAs Let You Save on Your Taxes
Here is an example of how much you can save when you
use the FSAs to pay for your predictable health care and
dependent care expenses. Important Information About FSAs
Account Type With FSA Without FSA Your FSA elections will be in effect from January 1, 2022
through December 31, 2022.
Your taxable income $50,000 $50,000

Pre-tax contribution to Health Health Care claims for reimbursement must be
Care and Dependent Care FSA $2,000 $0 submitted by March 31, 2023. Please plan your
contributions carefully. Only $500 in unused funds will
Federal and Social Security $11,701 $12,355 rollover to the following plan year. Any funds in excess
taxes* of $500 will be forfeited. This is known as the “use it or
lose it” rule and is governed by IRS regulations.
After-tax dollars spent $0 $2,000
on eligible expenses
Dependent Care (caregiving) claims must be incurred
Spendable income after $36,299 $35,645 between 1/1/2022 and 1/31/2023. Expenses not
expenses and taxes
submitted by 3/31/2022 will be forfeited.
Tax savings with the Medical $654 N/A
and Dependent Care FSA
Note that FSA elections do not automatically continue
*This is an example only and may not reflect your actual experience. It from year to year; you must actively enroll each year.
assumes a 25% federal income tax rate marginal rate and a 7.7% FICA
marginal rate. State and local taxes vary, and are not included in this
example. However, you will save on any state and local taxes
as well.
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