Page 14 - 2016 Enrollment
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Flexible Spending Accounts
The other tax-favored spending accounts offered are the Flexible Spending Account (FSA)
and the Transportation Account.
There are three types of FSAs—the Healthcare FSA, Limited FSA, and the Dependent
Care FSA. Aetna will remain the administrator. If you enroll in the Traditional plan, or no
medical plan, you are eligible to contribute to the Healthcare Flexible Spending Account
(FSA). If you participate in the High Deductible Plan, you are not eligible to open a
Healthcare FSA. Instead, you are eligible to open a Limited FSA. All employees, regardless
of medical plan enrollment, are eligible to contribute to the Dependent Care FSA. Similar
to the HSA, FSAs provide you with an important tax advantage that can help you pay
healthcare and dependent care expenses on a pre-tax basis. By anticipating your family’s
healthcare and dependent care costs for the next year, you can lower your taxable income.
How Do the Healthcare and Dependent Care Accounts Differ?
Healthcare FSA
The Healthcare FSA lets you pay for certain IRS-approved healthcare expenses not
covered by your insurance plan with pre-tax dollars. For example, money you spend on
deductibles, copayments, or other out-of-pocket medical expenses can instead be placed
in the Healthcare FSA pre-tax, to pay for these expenses. The maximum amount you can
contribute in 2016 is $2,550.
Please note if you participate in the Healthcare FSA, you cannot contribute to an HSA.
Limited FSA
As previously stated, if you are participating in the High Deductible Plan, you may
participate in a Limited FSA. This account is designed to complement a Health Savings
Account and allows for reimbursement of eligible dental and vision expenses that you
may have. Similar to the Healthcare FSA, you may contribute up to $2,550 in the Limited
Account.
Healthcare and Limited FSA Carryover
Participants have the ability to carryover up to $500 of unused Healthcare FSA funds at
the end of the plan year. The amount you carryover is in addition to your regular annual
election.
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2016 New Hire Benefits Guide
The other tax-favored spending accounts offered are the Flexible Spending Account (FSA)
and the Transportation Account.
There are three types of FSAs—the Healthcare FSA, Limited FSA, and the Dependent
Care FSA. Aetna will remain the administrator. If you enroll in the Traditional plan, or no
medical plan, you are eligible to contribute to the Healthcare Flexible Spending Account
(FSA). If you participate in the High Deductible Plan, you are not eligible to open a
Healthcare FSA. Instead, you are eligible to open a Limited FSA. All employees, regardless
of medical plan enrollment, are eligible to contribute to the Dependent Care FSA. Similar
to the HSA, FSAs provide you with an important tax advantage that can help you pay
healthcare and dependent care expenses on a pre-tax basis. By anticipating your family’s
healthcare and dependent care costs for the next year, you can lower your taxable income.
How Do the Healthcare and Dependent Care Accounts Differ?
Healthcare FSA
The Healthcare FSA lets you pay for certain IRS-approved healthcare expenses not
covered by your insurance plan with pre-tax dollars. For example, money you spend on
deductibles, copayments, or other out-of-pocket medical expenses can instead be placed
in the Healthcare FSA pre-tax, to pay for these expenses. The maximum amount you can
contribute in 2016 is $2,550.
Please note if you participate in the Healthcare FSA, you cannot contribute to an HSA.
Limited FSA
As previously stated, if you are participating in the High Deductible Plan, you may
participate in a Limited FSA. This account is designed to complement a Health Savings
Account and allows for reimbursement of eligible dental and vision expenses that you
may have. Similar to the Healthcare FSA, you may contribute up to $2,550 in the Limited
Account.
Healthcare and Limited FSA Carryover
Participants have the ability to carryover up to $500 of unused Healthcare FSA funds at
the end of the plan year. The amount you carryover is in addition to your regular annual
election.
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2016 New Hire Benefits Guide
