Page 9 - PPP Guide
P. 9
Flexible Spending Accounts (FSA)
New—Effective August 1, 2015
A great way to plan ahead and save money over the course of a year is to participate
in the Flexible Spending Account (FSA) programs.
These accounts allow you to redirect a portion of your salary on a pre-tax basis into
reimbursement accounts. Money from these accounts is then used to pay medical
and dental expenses which are not reimbursed by your medical and dental plans or
dependent care expenses.
Pre-tax means the dollars you use for eligible expenses are not subject
to Social Security tax, federal income tax, and in more cases, state and
local income taxes— money you would have paid in taxes.
Spend wisely! FSA programs allow you to pay for qualified expenses
from contributions which are tax free, keeping more money in your
pocket.
Under the Healthcare FSA, you can use the funds for eligible expenses
incurred between August 1, 2015 and March 15, 2016. Dependent Care
expenses are for eligible expenses incurred between January 1, 2015
and December 31, 2015. All of the accounts are subject to an IRS “use
it or lose it” requirement, so make sure to carefully decide how much
to set aside for this account.
In 2015, the FSA will be a short plan year since we are starting it in
August. In December, you will have an opportunity to enroll in the
FSA for the 2016 calendar year.
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New—Effective August 1, 2015
A great way to plan ahead and save money over the course of a year is to participate
in the Flexible Spending Account (FSA) programs.
These accounts allow you to redirect a portion of your salary on a pre-tax basis into
reimbursement accounts. Money from these accounts is then used to pay medical
and dental expenses which are not reimbursed by your medical and dental plans or
dependent care expenses.
Pre-tax means the dollars you use for eligible expenses are not subject
to Social Security tax, federal income tax, and in more cases, state and
local income taxes— money you would have paid in taxes.
Spend wisely! FSA programs allow you to pay for qualified expenses
from contributions which are tax free, keeping more money in your
pocket.
Under the Healthcare FSA, you can use the funds for eligible expenses
incurred between August 1, 2015 and March 15, 2016. Dependent Care
expenses are for eligible expenses incurred between January 1, 2015
and December 31, 2015. All of the accounts are subject to an IRS “use
it or lose it” requirement, so make sure to carefully decide how much
to set aside for this account.
In 2015, the FSA will be a short plan year since we are starting it in
August. In December, you will have an opportunity to enroll in the
FSA for the 2016 calendar year.
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