Page 18 - Example
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Flexible Spending Accounts (FSAs) (continued)
Limited Purpose Healthcare Flexible Spending Account
Employees who choose to enroll in the HSA plan are eligible to participate in a Limited Purpose FSA Plan.
Eligible FSA expenses incurred while you are contributing to the HSA will only be reimbursed for the following
(so plan your FSA goal amounts carefully if you are participating in the HSA):
> Dental Care
> Vision Care (including prescription eyeglasses and contact lenses)
Limited Purpose FSA and Healthcare FSA Contribution Limits
You can contribute up to $2,650 to your Healthcare and Limited Purpose FSA in 2019. GLG’s open
enrollment period will take place in November for the plan year beginning January 1 through December 31.
For the Healthcare FSA, your entire annual contribution amount is available immediately at the beginning of
the plan year to pay for eligible healthcare expenses. However, your total FSA election amount is deducted
from your paycheck in equal amounts during the year. So, if you decide to contribute $2,000 for the year,
you can use that amount right away. Please note that you can only rollover up to $500 of unused HCFSA
contributions that remain at the end of the plan year. In addition, such carryovers will not count against the
annual limit.
The beneit to you is that the funds are set aside on a pre-tax basis. Below is an example of what this might
mean for an employee earning $50,000 a year.
No FSA With an FSA
Employee Annual Salary $50,000 $50,000
Contribution to Healthcare FSA $0 $2,000
Taxable Salary $50,000 $48,000
Employee Tax Rate 30% 30%
Estimated Taxes $15,000 $14,400
Savings to Employee $0 $600
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Limited Purpose Healthcare Flexible Spending Account
Employees who choose to enroll in the HSA plan are eligible to participate in a Limited Purpose FSA Plan.
Eligible FSA expenses incurred while you are contributing to the HSA will only be reimbursed for the following
(so plan your FSA goal amounts carefully if you are participating in the HSA):
> Dental Care
> Vision Care (including prescription eyeglasses and contact lenses)
Limited Purpose FSA and Healthcare FSA Contribution Limits
You can contribute up to $2,650 to your Healthcare and Limited Purpose FSA in 2019. GLG’s open
enrollment period will take place in November for the plan year beginning January 1 through December 31.
For the Healthcare FSA, your entire annual contribution amount is available immediately at the beginning of
the plan year to pay for eligible healthcare expenses. However, your total FSA election amount is deducted
from your paycheck in equal amounts during the year. So, if you decide to contribute $2,000 for the year,
you can use that amount right away. Please note that you can only rollover up to $500 of unused HCFSA
contributions that remain at the end of the plan year. In addition, such carryovers will not count against the
annual limit.
The beneit to you is that the funds are set aside on a pre-tax basis. Below is an example of what this might
mean for an employee earning $50,000 a year.
No FSA With an FSA
Employee Annual Salary $50,000 $50,000
Contribution to Healthcare FSA $0 $2,000
Taxable Salary $50,000 $48,000
Employee Tax Rate 30% 30%
Estimated Taxes $15,000 $14,400
Savings to Employee $0 $600
14
