Page 18 - Eden Housing 2022 Benefit Guide

Flexible Spending Accounts (FSAs) – Lower Your Taxes by

Planning Ahead

Flexible Spending Accounts (FSAs), administered by Navia, allow you to set aside pre-tax dollars to pay for
eligible health and dependent care expenses. As an eligible employee, you may choose to enroll in one or
both Flexible Spending Accounts. Each year, you must elect the annual amount you want to contribute to
each account. Your contributions will be deducted pre-tax from your paycheck which can help reduce your
taxable income.

Health Care FSA Dependent Care FSA Limited Purpose FSA

IRS Maximum $2,850 $5,000 $2,850
Eligibility For those enrolled in an You and your spouse (if For those enrolled in the
HMO plan applicable) work full-time HDHP plan
• Dependent care expenses
Eligible Expenses* • Health care expenses, for a child under 13 • Dental and Vision
such as deductible, • Private day care providers expenses ONLY
copays and prescription and nannies o Eyeglasses or
• Eyeglasses or contact • Licensed care for disabled contact lenses
lenses dependents o Dental or Vision
• Lasik surgery • Care for an elderly parent copays
• Orthodontia who is dependent on you o Orthodontia

Availability of Funds You can be reimbursed up to Full election available
Full election available upon the amount available in your upon the benefits
the benefits effective date
account effective date
Payment or • • Use FSA debit card
Reimbursement Use FSA debit card Submit a claim form for out-of- • Submit a claim form
• Submit a claim form for pocket expenses
out-of-pocket expenses for out-of-pocket
expenses
For a complete list of eligible expenses, refer to IRS Publication 502: Medical and Dental Expenses, available at
www.irs.gov/publications.

Keep in Mind

FSAs offer sizable tax advantages, but are subject to IRS regulations:

• All expenses for the Health Care and Dependent Care Flexible Spending Accounts must be incurred
during the plan year: January 1 through December 31.
• The IRS has a strict “Use-It or Lose-It” rule for FSAs.
o At the end of the calendar year, participants can roll over up to $570 of unused health care
funds. Any remaining funds above this amount will be forfeited.
• Once you enroll in the FSA, you can only change your contribution amount if you experience a
qualified status change.
• Each account functions separately. You cannot transfer funds from one FSA to another.

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