Page 11 - 2018 Fontbonne Benefit Guide
P. 11
Fontbonne University
Flexible Spending Accounts
Why Section 125 Flexible Spending Healthcare FSA
(Reimbursement) Accounts? A healthcare FSA provides you
Fontbonne University sponsors a Section 125 lexible spending plan with the ability to save money on a
which lets you redirect a portion of your pay through payroll deduction pre-tax basis for any IRS-allowed
into healthcare and dependent care reimbursement accounts. You may health expenses not covered by
be reimbursed from your accounts as you incur eligible dependent care your healthcare coverage. These
expenses as well as expenses not covered by health, dental, or vision expenses include deductibles, copays
insurance. The money which goes into your FSAs is deducted on a pre- and coinsurance payments, routine
tax basis, which means it is deducted from your pay before federal and physicals, uninsured dental expenses,
Social Security taxes are calculated. Because you do not pay taxes on vision care expenses (e.g., eyeglasses
money which goes into your FSA, you decrease your payroll tax liability or contact lenses), and hearing care
and potentially reduce your Federal income tax liability, thus increasing expenses (e.g., a hearing exam or a
your net money. hearing aid).
How do FSA Contributions Work? BeneFLEX is the third party
How much money should you put into your accounts each pay period? administrator for our FSA plans.
That depends on your eligible expenses. The best way to estimate your Per IRS guidelines, you may
expenses for the upcoming year is by looking over the eligible expenses deposit up to $2,650 (pre-tax)
you incurred over the past few years. Divide the total predictable for the 2018 plan year into your
expenses by the number of pay periods in the plan year. The resulting healthcare FSA to cover you and
number represents the amount you should consider contributing your dependents during the plan
each pay period to your reimbursement accounts. If, at the end of the year. Pre-tax contributions are
plan year, you have unused funds remaining in your FSA, Fontbonne withheld from each paycheck. It
will allow you to roll-over up to $500 to be used on qualiied medical is important to estimate carefully;
expenses in the next year. if your FSA balance exceeds $500
on December 31, 2018, anything
over $500 will be forfeited.
Participants in the HSA plan
cannot participate in the
healthcare FSA except on a
“limited FSA” basis, which allows
for immediate access to funds for
dental and vision expenses.
11
Flexible Spending Accounts
Why Section 125 Flexible Spending Healthcare FSA
(Reimbursement) Accounts? A healthcare FSA provides you
Fontbonne University sponsors a Section 125 lexible spending plan with the ability to save money on a
which lets you redirect a portion of your pay through payroll deduction pre-tax basis for any IRS-allowed
into healthcare and dependent care reimbursement accounts. You may health expenses not covered by
be reimbursed from your accounts as you incur eligible dependent care your healthcare coverage. These
expenses as well as expenses not covered by health, dental, or vision expenses include deductibles, copays
insurance. The money which goes into your FSAs is deducted on a pre- and coinsurance payments, routine
tax basis, which means it is deducted from your pay before federal and physicals, uninsured dental expenses,
Social Security taxes are calculated. Because you do not pay taxes on vision care expenses (e.g., eyeglasses
money which goes into your FSA, you decrease your payroll tax liability or contact lenses), and hearing care
and potentially reduce your Federal income tax liability, thus increasing expenses (e.g., a hearing exam or a
your net money. hearing aid).
How do FSA Contributions Work? BeneFLEX is the third party
How much money should you put into your accounts each pay period? administrator for our FSA plans.
That depends on your eligible expenses. The best way to estimate your Per IRS guidelines, you may
expenses for the upcoming year is by looking over the eligible expenses deposit up to $2,650 (pre-tax)
you incurred over the past few years. Divide the total predictable for the 2018 plan year into your
expenses by the number of pay periods in the plan year. The resulting healthcare FSA to cover you and
number represents the amount you should consider contributing your dependents during the plan
each pay period to your reimbursement accounts. If, at the end of the year. Pre-tax contributions are
plan year, you have unused funds remaining in your FSA, Fontbonne withheld from each paycheck. It
will allow you to roll-over up to $500 to be used on qualiied medical is important to estimate carefully;
expenses in the next year. if your FSA balance exceeds $500
on December 31, 2018, anything
over $500 will be forfeited.
Participants in the HSA plan
cannot participate in the
healthcare FSA except on a
“limited FSA” basis, which allows
for immediate access to funds for
dental and vision expenses.
11
