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Tax Savings Plans 15

Flexible Spending Account (FSA) Plan

The Flexible Spending Account (FSA) Plan, administered by Infinisource, allows you to pay certain qualifying
expenses with pre-tax dollars. Because deductions for these expenses are subtracted from your gross
pay, your taxable income is reduced, less taxes are withheld, and your take-home pay may increase.
ABC Company provides employees with a debit card for use with the Health Care or the Limited Health
Care Spending Account. This card allows employees to purchase and immediately pay for eligible expenses
(e.g., doctor visits, prescriptions).
Employees who enroll in the FSA Plan contribute to their account(s) during the 12-month Plan Year
(January 1 – December 31). The FSA has three accounts in which you can participate:

Health Care Spending Account
The Health Care Spending Account allows you to set aside pre-tax dollars to pay for qualifying out-of-
pocket medical, dental, vision and prescription drug expenses, including deductibles, coinsurance and
copays for yourself or your dependents. The maximum amount you can contribute to the Health Care
Spending Account for 2018 is $2,650. Please note you cannot enroll in the Health Care Spending Account
if you are enrolled in the Anthem Blue Cross Lumenos HSA Plan or the Kaiser Permanente HSA Deductible
HMO Plan.

Limited Health Care Spending Account
If you enroll in the Anthem Blue Cross Lumenos HSA Plan or the Kaiser Permanente HSA Deductible
HMO Plan, you may enroll in the Limited Health Care Spending Account to pay for eligible dental and
vision expenses. You may not use the Limited Health Care Spending Account to pay your medical plan
deductible. However, after you have met your medical plan deductible, you can use the Limited Health
Care Spending Account to pay for eligible medical plan expenses. The maximum amount you can
contribute to the Limited Health Care Spending Account for 2018 is $2,650.

Dependent Care Spending Account
The Dependent Care Spending Account allows you to set aside pre-tax dollars to pay for eligible dependent
care expenses to a maximum of $5,000 per plan year, per household. This includes child care, elder care,
or other eligible dependent care.

The Benny Prepaid Benefits Card/Direct Deposit
The Benny Prepaid Benefits Card enables you to pay for eligible health care expenses directly from
your Health Care or Limited Health Care Spending Account. Your Spending Account is electronically
debited whenever you use the card. IRS regulations require that you provide documentation to verify
eligibility of certain expenses but you don’t have to wait for reimbursement. The Benny Prepaid Benefits
Card is accepted by eligible merchants and providers who use the Mastercard or VISA system.
You may also elect to have reimbursements deposited directly into your bank account.