Page 17 - Impact XM 2023 Benefit Guide
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Flexible Spending Account (FSA)
How the Account Works
Each pay period you make a contribution to your FSA, just like you would a savings account. Then, like a savings
account, when you need money, you take it out. You may use your FSA debit card to pay for qualified expenses at
the point of service. Another option is to fill out a claim form and attach your medical/dependent care receipts. The
Plan Administrator will mail a check for the amount of the expense. It’s that simple.
Please note for your medical expense FSA, the full annual amount you elected is available to you right away; for your
dependent care expense FSA, only the amount you’ve contributed so far is available for reimbursement.
How Much Should You Contribute?
The key to effectively using FSAs is figuring out how much to contribute each pay period. If you contribute less than
the amount of your actual eligible expenses, you miss out on some tax savings. If you contribute more than the
amount of your actual eligible expenses, you give up the extra money. IRS rules state that unlike a savings account, if
you don’t use the money in your account each year, you lose the leftover amount. Therefore, be conservative in your
estimates.
How Much Can You Contribute?
If you choose to participate, there are minimum and maximum limits on your Reimbursement Account contributions.
Reimbursement Account Limits
Health Care
Minimum Annually $100
Minimum Annually per pay period $2
*Maximum Annually $3,050
Maximum Amount per pay period $50
Dependent Care
Minimum Annually $100
Minimum Amount per pay period $2
*Maximum Annually $5,000
Maximum Amount per pay period $100
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