Page 63 - Touching All the Bases- Power point 2023 v2_Neat

0 3 F S A Basics

The two most common FSAs are a Medical FSA and Dependent Care FSA. You can have both accounts
at the same time, but you must enroll in and fund separate elections for each. For individuals contributing
to a Health Savings Account, you may have the option to select a Limited Purpose FSA instead
of the Medical FSA.

M E D I C A L F S A D E P E N D E N T C A R E F S A
( M E D I C A L E X P E N S E S F O R Y O U R F A M I L Y ) ( D A Y C A R E E X P E N S E S )

What are these funds used for? Funds can be What are these funds used for? Funds can be
used to pay for eligible medical expenses provided used for a qualified person, who is often one of
to you, your spouse, or eligible dependents. the following:
• A dependent child under the age of 13 for whom
When can I start using the funds in my account?
you can claim a tax exemption.
Your full plan year election is available to use on
• A spouse or dependent who is physically or
the first day of the plan year.
mentally incapable of self-care and for whom
What is an eligible expense? You can use these you can claim a tax exemption.
funds to pay for expenses that primarily prevent,
When can I start using the funds in my account?
treat, diagnose or alleviate a physical or mental
Unlike a Medical FSA, your entire Dependent Care
defect or illness. Common eligible expenses include:
FSA balance is not available at once. Dependent
Copayments, coinsurance, Care funds become available as they are
and deductible expenses deposited from payroll.
Dental care (e.g. exams, fillings, crowns) What is an eligible expense? You can pay for
Vision care, eyeglasses, contact lenses expenses that enable you or your spouse to be
gainfully employed, look for work, or attend school
Chiropractic care
full-time. Common eligible expenses include:
Prescription drugs and over-the-counter
drugs and medicines Before and after school care, child care,
in-home dependent care, day care in a facility,
What isn’t allowed? nursery school, and adult care
• You cannot use these funds to pay for expenses What isn’t allowed? You cannot use these funds
that are for personal care, cosmetic, or general to pay for services provided for education,
health purposes. overnight camps, or services provided by the
child’s parent or other dependent for income
• You cannot reimburse expenses from any other
tax purposes You also cannot claim a federal tax
source (e.g. insurance).
credit for any expenses reimbursed through your
• You cannot have a Medical FSA if you are enrolled Dependent Care FSA. Consult a tax professional
in a Health Savings Account (HSA). However, to determine if a Dependent Care FSA or the
a Limited Purpose FSA may be available. federal tax credit would be more advantageous.

What happens to funds I don’t use? Check your What happens to funds I don’t use? Expenses
plan highlights for information about how unused must be incurred within the plan year. Refer to
funds are treated. your plan highlights for deadlines to submit claims.