Page 12 - Guide
P. 12
2017 BENEFITS ENROLLMENT
Employee Connect/Flexible Spending
Flexible Spending Account
You must enroll each year FSA accounts are subject to the IRS “use it or lose it” rule, which means
to participate in the lexible any amount not used to cover eligible expenses incurred during the year is
spending account (FSA). forfeited. You must make a new FSA election each year; elections do not
roll over from one year to the next. There are two types of FSA accounts:
A lexible spending account (FSA) healthcare and dependent care.
allows you to pay for eligible
out-of-pocket healthcare and/or Healthcare Flexible Spending Account
dependent care expenses with pre- This account can be used to pay for many healthcare expenses incurred
tax dollars. by you and eligible dependents which are not covered by your medical,
dental, or vision insurance.
The amount you elect for these
accounts is deducted before taxes The new annual 2017 maximum amount allowed for this plan is $2,600.
are calculated, thus lowering your Common eligible expenses include orthodontia, coinsurance, copays,
taxable income. This means you prescriptions, and some over-the-counter medications.
save money when you pay eligible
expenses from the money you Dependent Care Flexible Spending Account
defer into your FSA (the amount This account can be used to reimburse you for child care, elder care, and
you save will depend on your tax care for other eligible dependents which enables you and your spouse to
bracket). work outside the home or attend school. The maximum annual amount
allowed for this plan is $5,000 or $2,500 for married taxpayers iling
Discovery Beneits is the FSA
administrator. When enrolling, separate returns. Eligible expenses include licensed nursery school and
you determine how much money daycare facilities for children or elderly disabled dependent(s) and child
you want to contribute to the care in or outside your home.
healthcare and/or dependent care The amount you elect to contribute to each account will be deducted
account. Your annual election automatically from your paycheck before Social Security and federal
amount will be withheld from your income taxes are withheld.
payroll before taxes are calculated.
If you want to save money without changing your spending habits,
enrolling in an FSA is a smart investment. If you are new to FSAs
and unsure about the “use it or lose it” rule, be conservative with your
election until you are more conident.
12 ALCO MANAGEMENT
Employee Connect/Flexible Spending
Flexible Spending Account
You must enroll each year FSA accounts are subject to the IRS “use it or lose it” rule, which means
to participate in the lexible any amount not used to cover eligible expenses incurred during the year is
spending account (FSA). forfeited. You must make a new FSA election each year; elections do not
roll over from one year to the next. There are two types of FSA accounts:
A lexible spending account (FSA) healthcare and dependent care.
allows you to pay for eligible
out-of-pocket healthcare and/or Healthcare Flexible Spending Account
dependent care expenses with pre- This account can be used to pay for many healthcare expenses incurred
tax dollars. by you and eligible dependents which are not covered by your medical,
dental, or vision insurance.
The amount you elect for these
accounts is deducted before taxes The new annual 2017 maximum amount allowed for this plan is $2,600.
are calculated, thus lowering your Common eligible expenses include orthodontia, coinsurance, copays,
taxable income. This means you prescriptions, and some over-the-counter medications.
save money when you pay eligible
expenses from the money you Dependent Care Flexible Spending Account
defer into your FSA (the amount This account can be used to reimburse you for child care, elder care, and
you save will depend on your tax care for other eligible dependents which enables you and your spouse to
bracket). work outside the home or attend school. The maximum annual amount
allowed for this plan is $5,000 or $2,500 for married taxpayers iling
Discovery Beneits is the FSA
administrator. When enrolling, separate returns. Eligible expenses include licensed nursery school and
you determine how much money daycare facilities for children or elderly disabled dependent(s) and child
you want to contribute to the care in or outside your home.
healthcare and/or dependent care The amount you elect to contribute to each account will be deducted
account. Your annual election automatically from your paycheck before Social Security and federal
amount will be withheld from your income taxes are withheld.
payroll before taxes are calculated.
If you want to save money without changing your spending habits,
enrolling in an FSA is a smart investment. If you are new to FSAs
and unsure about the “use it or lose it” rule, be conservative with your
election until you are more conident.
12 ALCO MANAGEMENT
