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Flexible Spending Accounts (FSA) – BRI Worldwide

Health Care Assistance Plan

The Health Care Assistance Plan (HCAP) can help you save taxes on any health care expenses that are
not covered (or only partially covered) by your benefit plans, such as deductibles, coinsurance, copays,
eye care services, laser eye surgery, orthodontia, and prescription medication. When you join the HCAP,
you estimate your eligible, out-of-pocket health care expenses for the coming year. (Estimate carefully.
IRS regulations require that any money left in your account at the end of the plan year be forfeited.) Your
contributions, up to $3,050 per calendar year, are then deducted in equal amounts from your pay before
taxes are withheld. When you incur an eligible expense, you submit a claim for reimbursement with tax-
free dollars from your account. You have up to 90 days after the end of the plan (calendar) year to submit
for reimbursement any eligible expenses incurred in the plan year. Only $610 can be carried over into the
next plan year. All funds over $610 will be forfeited.

Dependent Care Assistance Plan

The Dependent Care Assistance Plan (DCAP) helps you set aside money on a pre-tax basis to help pay
for dependent day care services for your child under age 13 or for any legal dependent who is physically or
mentally incapable of caring for himself or herself. Charges must be incurred so that you, or you and your
spouse if you are married, can work. When you join, you estimate your day care expenses for the coming
year. (Estimate carefully. IRS regulations require that any money left in your account at the end of the plan
year be forfeited.) Your contributions, up to $5,000 per year, $2,500 if you are married and filing
separately, are deducted in equal amounts from your pay before taxes are withheld. When you incur
eligible day care expenses, you submit a claim for reimbursement with tax-free dollars from your account.
You have up to 90 days after the end of the plan (calendar) year to submit for reimbursement any eligible
expenses incurred in the plan year.

Before you enroll in the DCAP, you may want to see if the federal childcare tax credit makes more sense
for you.

Remember: FSA funds are subject to the IRS “use it or lose it” rule. You can only carryover $610 from
your health care fund into the next plan year. Any additional amount will be forfeited. All unused dependent
care funds will be forfeited at the end of the plan year.

Click here for FSA Plan Details

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