Page 15 - 2023 SpeciatlyCare Benefit Guide

2023 Benefits Guide

Flexible Spending Accounts-WEX (formerly Discovery Benefits)

A benefit of Flexible Spending Accounts (FSAs) is 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 Dependent Care FSA. You then use your funds to pay for eligible health care or dependent
care expenses.
If you are enrolled in the HDHP and have a Health Savings Account (HSA), you may only use the FSA funds to
pay for dental and vision-related expenses.

Account Type Eligible Expenses Annual Contribution Limits Benefit
Health Care FSA Most medical, dental, and vision care Maximum contribution is Saves on eligible expenses
expenses not covered by your health $3,050 per year not covered by insurance;
plan (such as copayments, reduces your taxable
coinsurance, deductibles, eyeglasses, income
and doctor-prescribed over-the-
counter medications)
Limited Purpose Most dental and vision care expenses Maximum contribution is Saves on eligible expenses
FSA not covered by your health plan (such $3,050 per year not covered by insurance;
as copayments, coinsurance, reduces your taxable
deductibles, and eyeglasses) income
Dependent Care Dependent care expenses (such as Maximum contribution is Reduces your taxable
FSA daycare, after-school programs, or $5,000 per year income
eldercare programs) so you and your
spouse can work or attend school full-
time

FSAs Help You Save On Taxes* Important Information about FSAs

Here is an example of how much you can save using Your FSA elections will be in effect from January 1
the FSAs to pay for your predictable health care and through December 31. You must submit your claims
dependent care expenses. for reimbursement by March 31 of the following year.
Please plan your contributions carefully. According
Account Type With FSA Without FSA to the IRS regulations, any money remaining in your
Your taxable income $50,000 $50,000 account after March 31 is forfeited, known as the
Pre-tax contributions to
Health Care and Dependent $2,000 $0 "use it or lose it" rule. Note that FSA elections do not
Care FSA automatically continue from year to year; you must
Federal and Social Security $15,696 $16,350 actively enroll each year.
taxes*
After-tax dollars spent on What Are the Advantages of an FSA?
eligible expenses $0 $2,000 With an FSA, the money you contribute is tax-free
Spendable income after $32,304 $31,650 when you put it in the account, are reimbursed with
expenses and taxes the funds from the account, and file your income tax
Tax savings with the Health
Care and Dependent Care $654 N/A return at the end of the year.
FSA
*This is an example only and may not reflect your experience. It assumes a
25% federal income tax rate marginal rate and a 7.7% FICA marginal rate.
State and local taxes vary and are not part of this example. However, you
will save on any state and local taxes as well.

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