Page 14 - 2022 Thrall Benefits Guide

Flexible Spending Account (FSA)

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 pretax basis and are deposited to your Health Care
and/or Dependent Care FSA. You then use your funds to pay for eligible health care or dependent care expenses. Note
that when you use your debit card to pay for an expense, Discovery Benefits may require substantiationof the claim.

Account type Eligible expenses Details & annual contribution limits

Most medical, dental and vision care expenses Maximum contribution is $2,850 per year.
that are not covered by your health plan (such as This is available to PPO Plan enrollees and
copayments, coinsurance, deductibles, eyeglasses those who waive medical coverage.
Health Care FSA
and prescriptions)
Your contributions are deducted throughout the
year, but all funds are available on January 1 (or
upon eligibility).
Dental and vision expenses only that are not Maximum contribution is $2,850 per year.
covered by your health plan (such as copayments, This is available to those enrolled in the
coinsurance, deductibles, eyeglasses and Choice Fund HSA Plan with an HSA.
Limited Purpose FSA
prescriptions)
Your contributions are deducted throughout the
year, but all funds are available on January 1 (or
upon eligibility).
Dependent care expenses (such as day care, after Maximum contribution is $5,000 per year
school programs or elder care programs) for children ($2,500 if married and filing separate tax
Dependent Care FSA under age 13 or elder care so you and your spouse returns).
can work or attend school full-time

Important information about FSAs Without
With FSA
FSA elections are effective each calendar year period, January FSA
through December. FSA elections do not automatically
Your taxable income $50,000 $50,000
continue from year to year; you must actively enroll to
maintain this benefit. Pretax contribution to Health Care $2,000 $0
and Dependent Care FSA
This plan offers a Grace Period, allowing participants until
th
March 15 of the following year to incur expenses. Claims for Federal and Social Security taxes* $15,696 $16,350
st
reimbursement must then be submitted by March 31 . Any After-tax dollars spent on eligible
unclaimed funds remaining in the account after March 31 will expenses $0 $2,000
st
be forfeited, as per plan guidelines. This is known as the “use
it or lose it” rule and it is governed by IRS regulation. For this Spendable income after expenses $32,304 $31,650
reason, we encourage participants to plan their elections Tax savings with the Medical and
carefully. Dependent Care FSA $654 N/A
Advantages of an FSA *This is an example only and may not reflect your actual experience. It assumes a
With an FSA, the money you contribute is never taxed—not 25% federal income tax marginal rate and a 7.7% FICA marginal rate. State and
local taxes vary and are not included in this example; however, you will also save on
when you put it in the account, not when you are reimbursed
any state and localtaxes as well.
with the funds from the account, and not when you file your
income tax return at the end of the year.
Save on Your Taxes
The following table provides an example of how much you can
save when you use an FSA to pay for your predictable health
care and dependent care expenses.

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