Page 11 - 2018 Endeavor Schools Benefit Guide

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Flexible Spending Accounts (FSA)

Endeavor Schools offers two Flexible Spending Accounts administered by Discovery Benefits. You can set aside money
in a reimbursement account before taxes are deducted to pay for certain health and dependent care expenses, lowering
your taxable income and increasing your take home pay. Only expenses for services incurred during the plan year while
you are actively employed are eligible for reimbursement from your accounts.

Healthcare Flexible Spending Account
The Health Care Flexible Spending Account (HCFSA) helps you pay for qualified medical, dental and vision expenses
that are not fully reimbursed by your other benefit plans (for example, copays, coinsurance amounts and amounts above
benefit maximums) as well as medically necessary items.
You may use your FSA debit card at the time of service or submit reimbursement requests for health care expenses
regardless of the balance in your account.

Over-the-Counter (OTC) medications are not considered eligible expenses according to the IRS and require a physician’s
prescription in order to submit the expenses for reimbursement.

Dependent Care Flexible Spending Account

The Dependent Care Flexible Spending Account (DCFSA) reimburses you for eligible dependent care expenses that
enable you (and your spouse, if you are married) to work (for example, day care and elder care). Please note, dependent
care reimbursements cannot exceed your account’s current year-to-date balance.

Maximum Contributions

Per IRS regulation, the maximum amount you can contribute to the Health Care Flexible Spending Account in 2018 is
$2,650. You can continue to contribute up to $5,000 to the Dependent Care Flexible Spending Account. The maximum
amount you may contribute to the Dependent Care Flexible Spending Account is $5,000 if you are a single employee or
married and filing jointly. If you are married and filing separately, your maximum amount is $2,500.

Please note, dependent care reimbursements cannot exceed your account’s current year-to-date balance.

Use it or Lose it

FSAs offer sizable tax advantages. The trade-off is that these accounts are subject to strict IRS regulations,
including the use-it-or-lose-it rule. According to this rule, you must forfeit any money left in your account(s)
after your expenses for the year have been reimbursed. The IRS does not allow the return of unused account
balances at the end of the plan year and remaining balances cannot be carried forward to a future plan year.
If you are unable to estimate your health care and dependent care expenses accurately, it is better to be
conservative and underestimate rather than overestimate your expenses.