Page 16 - Enrollment Guide
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Definitions of Flexible Spending Accounts (FSA)
Flexible Accounts
Healthcare Flexible EnTrans offers participation in our Flexible Spending Accounts program
Spending Accounts administered by Blue Cross. Read below to ind out more about this
This account allows you to set money offering.
aside pre-tax to reimburse yourself
for eligible medical, dental or vision How Do FSAs Work?
expenses not covered by an insurance
plan. Examples are deductibles, FSAs work like a personal savings account. You elect to set aside a certain
coinsurance, and copayments. You amount of your paycheck into an account before income taxes are paid.
must incur the expenses during There are two types of accounts that your money can fund and you can
the plan year (by December 31), elect either account or both accounts. A more detailed summary of the
otherwise you will lose it!
FSA accounts is provided under the heading, “Deinitions of Flexible
Dependent Childcare Accounts” in this section.
Flexible Spending
Accounts The Healthcare FSA
This account allows you to set aside You may contribute up to $2,550 to this account.
pre-tax money to cover the costs of
dependent child care so you and/ The Dependent Care FSA
or your spouse may work or attend
school on a full-time basis. The IRS You may contribute up to $5,000 to this account depending on your
maximum contribution allowed is personal tax situation. Consult a inancial advisor for more information.
$5,000 per year. This maximum
applies to both single and married You will not be charged Federal, State, Social Security, and Medicare taxes
employees with families (when iling on money that you set aside in the FSA. Therefore, participation in the
taxes jointly). This plan may also FSA can save you valuable tax dollars by lowering your taxable income.
cover the costs of elder care, provided
that IRS criteria are met. You must During the year, you will have access to the money for reimbursement of
incur the expenses during the plan healthcare and/or dependent care expenses.
year (by December 31), otherwise you
will lose it! Plan Carefully
It is important you contribute only as much money to an FSA as you
know you will use during 2016. Because this is a tax-favored plan, the IRS
requires any money left unused at the end of 2016 be forfeited. You will
have 90 days at the end of the year to ile claims, but the expenses must
have been incurred during 2016.
Once the plan year has started, you cannot change your contribution
elections unless there is an IRS qualifying event (such as birth, change in
marital status, etc.).
Definitions of Flexible Spending Accounts (FSA)
Flexible Accounts
Healthcare Flexible EnTrans offers participation in our Flexible Spending Accounts program
Spending Accounts administered by Blue Cross. Read below to ind out more about this
This account allows you to set money offering.
aside pre-tax to reimburse yourself
for eligible medical, dental or vision How Do FSAs Work?
expenses not covered by an insurance
plan. Examples are deductibles, FSAs work like a personal savings account. You elect to set aside a certain
coinsurance, and copayments. You amount of your paycheck into an account before income taxes are paid.
must incur the expenses during There are two types of accounts that your money can fund and you can
the plan year (by December 31), elect either account or both accounts. A more detailed summary of the
otherwise you will lose it!
FSA accounts is provided under the heading, “Deinitions of Flexible
Dependent Childcare Accounts” in this section.
Flexible Spending
Accounts The Healthcare FSA
This account allows you to set aside You may contribute up to $2,550 to this account.
pre-tax money to cover the costs of
dependent child care so you and/ The Dependent Care FSA
or your spouse may work or attend
school on a full-time basis. The IRS You may contribute up to $5,000 to this account depending on your
maximum contribution allowed is personal tax situation. Consult a inancial advisor for more information.
$5,000 per year. This maximum
applies to both single and married You will not be charged Federal, State, Social Security, and Medicare taxes
employees with families (when iling on money that you set aside in the FSA. Therefore, participation in the
taxes jointly). This plan may also FSA can save you valuable tax dollars by lowering your taxable income.
cover the costs of elder care, provided
that IRS criteria are met. You must During the year, you will have access to the money for reimbursement of
incur the expenses during the plan healthcare and/or dependent care expenses.
year (by December 31), otherwise you
will lose it! Plan Carefully
It is important you contribute only as much money to an FSA as you
know you will use during 2016. Because this is a tax-favored plan, the IRS
requires any money left unused at the end of 2016 be forfeited. You will
have 90 days at the end of the year to ile claims, but the expenses must
have been incurred during 2016.
Once the plan year has started, you cannot change your contribution
elections unless there is an IRS qualifying event (such as birth, change in
marital status, etc.).
