Page 15 - 2021 Sample Benefit Booklet

FSA/DEPENDENT CARE

ABC Group offers two flexible spending accounts (FSAs) – Health Care and Dependent Care – that allow you
to use pre-tax dollars to pay for certain health and dependent care expenses. The IRS determines which
expenses are eligible for reimbursement from the FSAs; refer to www.irs.gov for a list of all eligible and
ineligible expenses.

You can participate in one or both of the accounts. Each year, you decide how much to contribute on a pre-tax
basis. The annual amount you elect is deducted from your paycheck in equal amounts each pay period before
federal, Social Security, and in most cases, state income taxes are deducted. Then, when you incur eligible
expenses during the year, you can request reimbursement with your untaxed money from the appropriate
account.

HEALTH CARE FSA

The Health Care FSA allows you to pay for certain health care expenses that are not covered or only partially
covered by your health care plans (medical, dental, vision and prescription drug). Eligible expenses can be
incurred by you or any of the eligible dependents that you claim on your federal income tax return.

You can contribute a minimum of $100 and up to $1,500 per year to the Health Care FSA. You may use the
Health Care FSA to pay forexpenses such as:

 Copays for office visits and prescriptiondrugs

 Coinsurance for your medical, dental andvision plans
 Deductible amounts for your medical, dental and vision plans

 Weight loss and smoking cessation programs (when prescribed by a physician)
 Fees for acupuncture, chiropractic care, laser eye surgery and orthodontia

 Effective 1/1/2011, expenses for over-the-counter drugs/medications are eligible for reimbursement only
if accompanied by a written prescription fromyour physician

DEPENDENT CARE FSA

The Dependent Care FSA is designed for people who need dependent care so that they can work. You are
eligible to participate if you are single or married. However, if you are married, your spouse must either work,
go to school full-time or be unable to care for your dependents due to a disability.
Dependent care can be for your children, spouse or parents. Dependents must live with you and be claimed as
a dependent on your federal income tax return. The most you can contribute per year to the Dependent Care
FSA is $5,000 per IRShousehold.
PUBLIC TRANSIT/COMMUTER BENEFIT

The commuter benefit allows employees to set aside a minimum of $100 and up to $270 per month on a pre-
tax basis to pay for public transportation (bus, train, ferry, subway, BART) and commuter highway vehicles
(vanpools).

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