Page 10 - Fort Health Care 2022 Benefit Guide

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FLEXIBLE SPENDING ACCOUNTS

Did you know there’s a way to pay your healthcare expenses and save money at the same time? Flexible Spending
Accounts (FSAs) are designed to save you money on your taxes, while setting money aside to pay healthcare expenses.
Each pay period, you can set aside pretax dollars that will be deposited to your Health Care and/or Dependent Care
Spending Account. You then use your funds to pay for eligible health care or dependent care expenses.

Substantiation
Plan Carefully!!
The Advantages of an FSA
To maximize the advantages of
participating in the FSA program, With an FSA, the money you contribute is never taxed—not when you
consider your health care put it in the account, not when you are reimbursed with the funds
expenses carefully and estimate from the account, and not when you file your income tax return at the
your future expenses as closely end of the year.
as possible. You can do this by
Since this is an IRS Tax Saving Account, you should keep your receipts
completing the helpful
for any transactions on your Benny Card
worksheet on the following
pages. All expenses reimbursed Note: Within the tax code, there is a rule that states every expense or
by the FSA must be health care transaction from an FSA must be substantiated. Transactions on an
services received in the plan FSA debit (Benny) card must be substantiated, either through
year. electronic validation or through paper receipts submitted by the card
user (similar to paper claims).

This means there needs to be proof or evidence that the funds were
used for eligible medical expenses.

Account Type Eligible Expenses Annual Contribution Limits Benefit
Most medical, dental and vision care Maximum contribution is $2,850 per Saves on eligible
expenses that are not covered by your year (for 2022-2023 plan year) expenses not covered by
health plan (such as copayments, insurance; reduces your
Health Care FSA coinsurance, deductibles, eyeglasses Annual election amounts are divided taxable income
and doctor-prescribed over the evenly over 24-pay periods.
counter medications). Example: $2,850/24 = $118.75 per Rollover up to $570 if not
payroll deduction. used to next plan year
Dependent care expenses (such as Maximum contribution is $5,000 per Reduces your taxable
day care, after school programs or year ($2,500 if married and filing income
elder care programs) so you and your separate tax returns).
spouse can work or attend school full-
Dependent Care FSA
time. Annual election amounts are divided
evenly over 24-pay periods.
Example: $5,000/24 = $208.33 per
payroll deduction

Guide to Your Benefits | May 1, 2022 – April 30, 2023