Page 9 - Tessenderlo Kerley, Inc 2022 Benefit Guide

FLEXIBLE SPENDING ACCOUNTS

A Flexible Spending Account (FSA) helps you pay for health care or Tax Savings with Flexible Spending Accounts
dependent care costs using tax-free dollars. Your contribution is deducted Here is an example of how much you can save when you use an FSA to
from your paycheck on a pre-tax basis and is put into the FSA. When you pay for your predictable health care and/or dependent care expenses.
incur expenses, you can access the funds in your account to pay for eligible
expenses. This chart shows the eligible expenses for each FSA and how Account type With FSA Without FSA
much you can contribute each year. Each of these options reduces your
taxable income. Your taxable income $50,000 $50,000

Account type Eligible expenses Annual contribution limits Pre-tax contribution to Health Care and $2,000 $0
Dependent Care FSA
Most medical, dental and vision Maximum contribution is
care expenses that are not $2,750 per year. Federal and Social Security taxes* $11,701 $12,355
Health Care covered by your health plan Funds are deducted
FSA (such as copays, coinsurance, throughout the year, but After-tax dollars spent on eligible expenses $0 $2,000
deductibles, eyeglasses and all funds are available on
prescriptions)
January 1. Spendable income after expenses $36,299 $35,645
and taxes
Dependent care expenses Maximum contribution is
(such as daycare, after school $5,000 per year ($2,500 if Tax savings with the Medical and $654 N/A
Dependent programs for children under married and filing separate Dependent Care FSA
Care FSA age 13) or eldercare so you tax returns).
and your spouse can work or *This is an example only your actual experience. It assumes a 25% federal income tax marginal
attend school full-time rate and a 7.7% FICA marginal rate. State and local taxes vary and are not included in this example.
However, you will save on any applicable state and local taxes as well.

Important information about FSAs
Your FSA elections are effective from January 1 through December 31. Claims for reimbursement must be submitted by March 31 of the following
year. Our Health Care FSA allows you to carry over $550 in unused funds to the following plan year.
Please plan your contributions carefully. Any unused money remaining in your account(s) will be forfeited. This is known as the “use it or lose it”
rule and it is governed by Internal Revenue Service regulations. Note that FSA elections do not automatically continue from year to year; you must
actively enroll each year.

WELCOME BENEFIT BASICS MEDICAL DENTAL VISION FSA ADDITIONAL BENEFITS 401(k) CONTACTS LEGAL RIGHTS 9