Page 10 - 2022 Clarins Benefit Guide

YOUR BENEFITS GUIDE 2022

Flexible Spending Accounts and Health Savings Account

Flexible Spending Accounts

Flexible Spending Accounts (FSAs) are designed to save you money on your taxes. If you elect the
FSA and select your annual contribution amount at open enrollment, pre-tax dollars will be deducted
from your paycheck each pay period and deposited to your Health Care and/or Dependent Care FSA.
You may use these funds to pay for eligible health care or dependent care expenses.

Flexible Spending Accounts
Annual Contribution Limits
Account Type Eligible Expenses Benefit
(subject to IRS adjustments)
Most medical, dental and vision Saves on eligible
care expenses that are not expenses not
covered by your health plan Maximum contribution is
Health Care FSA (such as copayments, $2,750* per year covered by
coinsurance, deductibles, insurance; reduces
your taxable
eyeglasses and over the counter income
medications)
*Subject to change by the IRS
Dependent care expenses (such
as day care, after school Maximum contribution is $5,000
Dependent Care programs or elder care per year ($2,500 if married and Reduces your
FSA programs) so you and your filing separate tax returns) taxable income
spouse can work or attend school
full time

Note: You may not participate in both the Health Care FSA and the Health Savings
Account (HSA).
*Annual Contribution Limits are subject to change by the IRS.
Important Information About FSAs

Your FSA elections will be in effect from January 1
through December 31. It is important to plan your
contributions carefully. Claims incurred between January
1 and December 31 must be submitted for reimbursement
by March 31 of the following year, and any remaining
funds after March 31 will be forfeited. This is known as
the “use it or lose it” rule and is governed by IRS
regulations. Please also note that FSA elections do not
automatically continue from year-to-year; you must
actively enroll each year.

What Are the Advantages of an FSA?
With an FSA, the money you contribute is never taxed—
not when you put it in the account, not when you are
reimbursed with the funds from the account, and not
when you file your income tax return at the end of the
year.

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