Page 13 - 2015 New Hire Guide
P. 13
Fontbonne University
Flexible Spending Accounts
Why Section 125 How much money should you put into your accounts each pay? That
Flexible Spending depends on your eligible expenses. The best way to estimate your
(Reimbursement) expenses for the upcoming year is by looking over the eligible expenses
Accounts? you incurred over the past few years. Divide the total predictable
Fontbonne University sponsors a expenses by the number of pay periods in the plan year. The resulting
number represents the amount you should consider contributing each
Section 125 Flexible Spending Plan pay to your reimbursement accounts. If, at the end of the plan year,
that lets you redirect a portion of you have unused funds remaining in your FSA, Fontbonne will allow
your pay through payroll deduction you to roll-over up to $500 to be used on qualiied medical expenses in
into healthcare and dependent care the next year.
reimbursement accounts. You may
be reimbursed from your accounts Health vs . Dependent Care Spending Accounts—
as you incur eligible dependent care An Important Difference
expenses as well as expenses not
covered by health, dental, or vision While health and dependent care spending accounts do function quite
insurance. The money that goes into similarly, they are very different when it comes to how you can use your
your FSAs is deducted on a pre-tax account balance. For health accounts, you are able to begin using your
basis, which means it is deducted entire plan year balance as soon as the plan becomes effective.
from your pay before Federal and
Social Security taxes are calculated. Dependent care spending accounts are different in that reimbursements
Because you do not pay these taxes are based upon the amount of your balance. If you submit a claim
on money that goes into your FSA, for an amount that is greater than your balance, then you will only
you decrease your payroll tax liability be reimbursed at that point in time for the amount of your account
and potentially reduce your Federal balance. The remainder of the balance will be reimbursed to you as
income tax liability, thus increasing additional funds are deposited into your account.
your net money.
13
Flexible Spending Accounts
Why Section 125 How much money should you put into your accounts each pay? That
Flexible Spending depends on your eligible expenses. The best way to estimate your
(Reimbursement) expenses for the upcoming year is by looking over the eligible expenses
Accounts? you incurred over the past few years. Divide the total predictable
Fontbonne University sponsors a expenses by the number of pay periods in the plan year. The resulting
number represents the amount you should consider contributing each
Section 125 Flexible Spending Plan pay to your reimbursement accounts. If, at the end of the plan year,
that lets you redirect a portion of you have unused funds remaining in your FSA, Fontbonne will allow
your pay through payroll deduction you to roll-over up to $500 to be used on qualiied medical expenses in
into healthcare and dependent care the next year.
reimbursement accounts. You may
be reimbursed from your accounts Health vs . Dependent Care Spending Accounts—
as you incur eligible dependent care An Important Difference
expenses as well as expenses not
covered by health, dental, or vision While health and dependent care spending accounts do function quite
insurance. The money that goes into similarly, they are very different when it comes to how you can use your
your FSAs is deducted on a pre-tax account balance. For health accounts, you are able to begin using your
basis, which means it is deducted entire plan year balance as soon as the plan becomes effective.
from your pay before Federal and
Social Security taxes are calculated. Dependent care spending accounts are different in that reimbursements
Because you do not pay these taxes are based upon the amount of your balance. If you submit a claim
on money that goes into your FSA, for an amount that is greater than your balance, then you will only
you decrease your payroll tax liability be reimbursed at that point in time for the amount of your account
and potentially reduce your Federal balance. The remainder of the balance will be reimbursed to you as
income tax liability, thus increasing additional funds are deposited into your account.
your net money.
13
