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Olshan Properties Corporate
Flexible Spending Accounts
You have the option to contribute to a healthcare and dependent care
lexible spending accounts (FSAs). ADP administers this beneit.
The Internal Revenue Service set up FSAs as a means to provide
a tax break to employees. As an employee, you agree to set aside
a portion of your pre-tax salary in an account, and that money is
deducted from your paycheck over the course of the year. The
amount you contribute to the FSA is not subject to Social Security
(FICA), federal, state, or local income taxes—effectively adjusting
your annual taxable salary. The taxes you pay each paycheck and
collectively each year can be reduced signiicantly, depending on your
tax bracket. As a result of the personal tax savings you realize, your
spendable income will increase.
Healthcare FSA
The healthcare FSA lets you pay for certain IRS approved medical,
prescription drug, dental, and vision care expenses not covered by
your insurance plan with pre-tax dollars. For example, cash that
you now spend on deductibles, copayments, or other out-of-pocket
medical expenses can instead be placed in the healthcare FSA to pay
for these expenses. The maximum contribution to the healthcare
FSA is $2,550 for 2016.
Please remember to plan carefully when determining your
contribution amount. Because the healthcare FSA has tax beneits,
the IRS places guidelines on how long you have to spend the money.
Any money left in your account at the end of the plan year cannot
be rolled over to the next year or paid out to you. Your plan allows
an extension of up to 2½ months into the following plan year, called
the grace period, to help you spend your healthcare FSA funds. Any
excess amount after the grace period is forfeited to the plan.
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Flexible Spending Accounts
You have the option to contribute to a healthcare and dependent care
lexible spending accounts (FSAs). ADP administers this beneit.
The Internal Revenue Service set up FSAs as a means to provide
a tax break to employees. As an employee, you agree to set aside
a portion of your pre-tax salary in an account, and that money is
deducted from your paycheck over the course of the year. The
amount you contribute to the FSA is not subject to Social Security
(FICA), federal, state, or local income taxes—effectively adjusting
your annual taxable salary. The taxes you pay each paycheck and
collectively each year can be reduced signiicantly, depending on your
tax bracket. As a result of the personal tax savings you realize, your
spendable income will increase.
Healthcare FSA
The healthcare FSA lets you pay for certain IRS approved medical,
prescription drug, dental, and vision care expenses not covered by
your insurance plan with pre-tax dollars. For example, cash that
you now spend on deductibles, copayments, or other out-of-pocket
medical expenses can instead be placed in the healthcare FSA to pay
for these expenses. The maximum contribution to the healthcare
FSA is $2,550 for 2016.
Please remember to plan carefully when determining your
contribution amount. Because the healthcare FSA has tax beneits,
the IRS places guidelines on how long you have to spend the money.
Any money left in your account at the end of the plan year cannot
be rolled over to the next year or paid out to you. Your plan allows
an extension of up to 2½ months into the following plan year, called
the grace period, to help you spend your healthcare FSA funds. Any
excess amount after the grace period is forfeited to the plan.
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