Page 13 - Emmis 2022 Benefit Guide

Flexible Spending Accounts (Health Care & Dependent Care)

A Flexible Spending Account (FSA) helps you pay for current year health care or dependent care
costs using tax-free dollars. Your contribution is deducted from your paycheck on a pretax basis and
is put into the FSA. When you incur expenses, you can access the funds in your account to pay for
eligible expenses.

Account Annual Contribution
Type Eligible Expenses Limits Benefit
Most medical, dental and vision Maximum contribution Saves on eligible
Health Care FSA care expenses that are not covered is $2,850 per year expenses not
(only available by your health plan (such as covered by
with Emmis’s copayments, coinsurance, insurance;
PPO plan or no deductibles, eyeglasses and doctor- reduces your
Emmis health prescribed over the counter taxable income
medications)
coverage)

Dependent care expenses (such as Maximum contribution Reduces your
day care, after school programs or is $5,000 per year taxable income
Dependent Care elder care programs) so you and ($2,500 if married and
FSA your spouse can work or attend filing separate tax
school full-time returns)

FSAs Let You Save on Your Taxes Important Information About FSAs

Here is an example of how much you can save when you use Your Flexible Spending Account (FSA) elections are effective
the FSAs to pay for your predictable health care and from January 1 through December 31. Please plan your
dependent care expenses. contributions carefully. Our Health Care FSA allows you to
carry over $550 in unused funds to the next plan year. Any
money remaining in your Health Care FSA over $550 and any
Account Type With FSA Without FSA st
amount in your Dependent Care FSA as of March 31 of the
Your taxable income $50,000 $50,000 following year will be forfeited. This is known as the “use it or
lose it” rule and it is governed by IRS regulations. Note that
FSA elections do not automatically continue from year to
Pre-tax contribution to Health
Care and Dependent Care FSA ($2,000) $0 year; you must actively enroll each year.

Federal and Social Security ($15,696) ($16,350)
taxes* What Are the Advantages of an FSA?
With an FSA, the money you contribute is never taxed as long
After-tax dollars spent $0 ($2,000) as used for eligible expenses—not when you put it in the
on eligible expenses
account, not when you are reimbursed with the funds from
the account, and not when you file your income tax return at
Spendable income after $32,304 $31,650
expenses and taxes the end of the year.

Tax savings with the Medical $654 N/A
and Dependent Care FSA

*This is an example only; not your actual experience. It assumes a
25% federal income tax marginal rate and a 7.7% FICA marginal
rate. State and local taxes vary and are not included in this
example. However, you may save on state and local taxes as well.

Your Benefits Guide 2022 12