Page 12 - 2022 OCFJSD Benefits Guide

Annual
Flexible Eligible Expenses Contribution Benefit

Limits
Spending Health Care FSA

Most medical, dental and
vision care expenses that are Maximum Saves on eligible
expenses not
Accounts not covered by your health contribution covered by
plan (such as copayments,
coinsurance, deductibles, is $2,750 per insurance;
The District provides the option for all staff members, eyeglasses and doctor- year reduces your
who are regularly scheduled to work at least 20 hours prescribed over the counter taxable income
per week, to enroll in a third-party administered flex medications)
plan for reimbursement of dependent care and
eligible medical expenses. Staff members will be able Dependent Care FSA
to indicate the amount of money for qualified Dependent care expenses
purposes that they would like deducted, pre-tax, from (such as day care, after Maximum
their salary to go into a flex account on an annual school programs or elder contribution Reduces your
basis, based on a calendar year. Any unused funds at care programs) so you and is $5,000 per taxable income
the end of the Plan Year must be forfeited due to IRS your spouse can work or year
rules. The District’s Flexible Spending Account Plan attend school full-time
has a Grace Period. Grace Period is a 2 months + 15
day-period after the end of a Plan year in which
participants may incur new expenses but be EXAMPLE
reimbursed with last year’s FSA funds. The District’s Here’s a look at how much you can save when you use an FSA to pay
Plan year is January 1 - December 31. for your health care and dependent care expenses.

This chart shows the eligible expenses for each FSA; Account Type With FSA Without FSA
how much you can contribute to each FSA each year, Your taxable income $50,000 $50,000
and how you benefit by using an FSA.
Pretax contribution to
Health Care and Dependent $2,000 $0
Care FSA

Federal and Social Security
$15,696 $16,350
taxes*

After-tax dollars spent on
$0 $2,000
eligible expenses
Spendable income after
expenses and taxes $32,304 $31,650
Tax savings with the Medical
$654 N/A
and Dependent Care FSA

*This is an example only; not your actual experience. It assumes a 25% federal
income tax rate marginal rate and a 7.7% FICA marginal rate. State and local
taxes vary, and are not included in this example. However, you will save on
any state and local taxes as well.
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