Page 21 - CC 2017 Benefits Booklet

2017 EMPLOYEE BENEFITS GUIDE

FLEXIBLE SPENDING ACCOUNTS

HEALTHCARE FSA
What is a Section 125 Flexible Spending
(Reimbursement) Account? A healthcare FSA provides you
the ability to save money on a
Columbia College sponsors a Section 125 flexible spending pre-tax basis for any IRS-allowed
plan which lets you redirect a portion of your pay through health expenses not covered by
payroll deduction into healthcare and dependent care your healthcare coverage. These
reimbursement accounts. You may be reimbursed from expenses include deductibles,
your accounts as you incur eligible dependent care copays and coinsurance
expenses as well as expenses not covered by health, payments, routine physicals,
dental, or vision insurance. The money which goes into uninsured dental expenses,

your FSAs is deducted on a pre-tax basis, which means it is vision care expenses (e.g.,
deducted from your pay before federal and Social Security eyeglasses or contact lenses),
taxes are calculated. Because you do not pay taxes on and hearing care expenses (e.g.,
money which goes into your FSA, you decrease your payroll a hearing exam or a hearing aid).
tax liability and potentially reduce your Federal income tax
liability, thus increasing your net money. ASI (www.ASIflex.com) is the
third party administrator for our
How do FSA Contributions Work? FSA plans.

How much money should you put into your accounts each Per IRS guidelines, you may
pay period? That depends on your eligible expenses. The deposit up to $2,600 (pre-tax)
best way to estimate your expenses for the upcoming year for the 2017 plan year into your
is by looking over the eligible expenses you incurred over healthcare FSA to cover you and
the past few years. Divide the total predictable expenses by your dependents during the plan
the number of pay periods in the plan year. The resulting year. Pre-tax contributions are
number represents the amount you should consider withheld from each paycheck.

contributing each pay period to your reimbursement It is important to estimate
accounts. If, at the end of the plan year, you have unused carefully; if your FSA balance
funds remaining in your FSA, Columbia College will allow exceeds $500 on December 31,
you to rollover up to $500 to be used on qualified medical 2017, anything over $500 will be
expenses in the next year. forfeited.

Participants in the HSA plan
cannot participate in the
healthcare FSA except on a
“limited FSA” basis, which
allows for immediate access
to funds for dental and vision
expenses.
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