Page 15 - 2022 Oerlikon Benefits Guide

Flexible Spending Accounts

A Flexible Spending Account (FSA) helps you pay for health care or dependent care costs using tax-free dollars.

Your contribution is deducted from your paycheck on a pretax basis and is put into the FSA. When you incur expenses,
you can access the funds in your account to pay for eligible expenses.

Your FSAs are offered through Medcom. If you enroll in the Health Care FSA, expect to receive a debit card in the
mail that you can use at the point of sale.

This chart shows the eligible expenses for each FSA and how much you can contribute each year. Each of these options
reduces your taxable income.

Account type Eligible expenses Annual contribution limits

Most medical, dental and vision care expenses that are Maximum contribution is $2,850* per year.
Health Care FSA not covered by your health plan (such as copayments,
coinsurance, deductibles, eyeglasses and prescriptions). Funds are deducted throughout the year, but
You cannot enroll if you all funds are available on January 1.
are enrolled in the HDHP A list of qualified expenses can be found on
plan with an HSA.
www.irs.gov.

Dependent care expenses (such as day care, after Maximum contribution is $5,000* per year
school programs or elder care programs) for children ($2,500 if married and filing separate tax
Dependent Care FSA
under age 13 or elder care so you and your spouse can returns).
work or attend school full-time.
Funds are deducted throughout the year,
and only available as accrued.
A list of qualified expenses can be found on
www.irs.gov.

*subject to change
Here is an example of how much money you can save when you use the FSA to pay for your health care expenses.

Account Type With FSA Without FSA
Your taxable income $50,000 $50,000
Pre-tax contributions to Health Care FSA $2,000 $0
Federal and Social Security taxes* $11,701 $12,355
After-tax dollars spent on eligible expenses $0 $2,000
Spendable income after expenses and taxes $36,299 $35,645
Tax savings with the Health Care FSA $654 N/A
*This is an example only and may not reflect your actual experience. It assumes a 25% federal income tax rate marginal rate a nd
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.

Important information about FSAs
Your FSA elections are effective from January 1 through December 31. Claims for reimbursement must be
incurred by March 15 of the following year and submitted by March 31.

Please plan your contributions carefully. Any unused money remaining in your account(s) will be forfeited. This
is known as the “use it or lose it” rule and it is governed by Internal Revenue Service regulations. Note that FSA
elections do not automatically continue from year to year; you must actively enroll each year.

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