Page 13 - Benefits Guide
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Flexible Spending Accounts
Flexible Spending Accounts
Flexible Spending Accounts (FSAs) are a great way to save money for specific health care and dependent care expenses you know you’ll have during the year.
Each year, you have the option of enrolling in the following accounts. For each account, the minimum amount you may contribute is $120 per year.
Health Care
Flexible Spending Account
You can contribute up to $2,650 per year to pay for eligible medical, prescription drug, dental, and vision expenses. You may not enroll in this flexible spending account if you are electing medical coverage through either the SMART Value HDHP or SMART Choice HDHP option.
Dependent Care
Flexible Spending Account
You can contribute up to $5,000 per year (or $2,500 if married filing separate tax returns) to pay for eligible out-of-pocket dependent care expenses. You can enroll in the Dependent Care FSA regardless of whether you elect or waive medical coverage.
How a Flexible Spending Account Works
If you choose to participate in a FSA, you should carefully estimate the amount of eligible expenses you might incur during the plan year so you can determine how much to set aside out of each 2019 paycheck.
You cannot change the amount you contribute during the year unless you have a Qualified Life Status Change event.
The amount you choose to contribute will be deducted from your paycheck in equal amounts during the plan year on a before-tax basis.
As you incur eligible expenses and pay for them out of your own pocket, you reimburse yourself from one or both accounts.
For a list of eligible Health Care FSA reimbursable expenses, review the IRS publication at www.irs.gov/pub/irs-pdf/p502.pdf.
For a list of eligible Dependent Care FSA reimbursable expenses, review the IRS publication at www.irs.gov/pub/irs-pdf/p503.pdf.
Flexible Spending Account Facts
“Use it or lose it.” You can’t carry over a flexible spending account balance from one year to the next, so estimate your annual contributions carefully.
Money can’t be transferred between accounts for expense reimbursements.
You can’t stop or change your flexible spending account contributions during the plan year unless you have an applicable qualified status change. You must re-enroll in any flexible spending account each year during Annual Enrollment.
You have until March 31 following the end of the plan year or your termination date to submit that year’s reimbursement requests.
When you enroll in your flexible spending account, be sure to select the right account—health care and/or dependent care—and have eligible dependents.
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