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FLEXIBLE SPENDING ACCOUNT

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Medical Flexible Spending Account
Dependent Care Flexible Spending Account
Limited Purpose Flexible Spending Account
FSAs are a great way to save money for eligible medical, dental, vision and dependent care costs. 
Two types of Healthcare FSAs – FSA and Limited FSA – are used for healthcare-related expenses. The account you can elect depends on the medical plan you choose.
The Dependent Care FSA is used for dependent care expenses.
ALL FSAS
  • Are tax-advantaged. You do not pay federal taxes on your pre-tax contributions or on reimbursements made from the account.
  • Allows you to make contributions with pre-tax dollars through payroll deduction.
  • Can be accessed online, through mobile technology or by phone.
  • Are regulated by the IRS and subject to yearly contribution limits.
  • Only accept the deposit amount you select when the account is opened. Deposit amounts cannot be changed during the year unless you have a Qualified Life Event.
  • Elections will be in effect from January 1 through December 31. Any funds remaining in your account as of of March 15 of the following year will be forfeited.
  • Is administered by Wex.

Your FSA elections will be in effect from January 1 through December 31. Claims for reimbursement must be submitted by March 31 of the following year for expenses incurred through March 15. Please plan your contributions carefully. Any money remaining in your account as of March 15 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.

Flexible Savings Account Type Who Can Have an FSA? Eligible Expenses Annual  Contribution Limits
Flexible Spending Account Anyone covered by a non-high deductible health plan Most medical, dental and vision care expenses that are not covered under your health plan (such as copayments, deductibles, eyeglasses and doctor prescribed over the counter medications). $3,200
Limited-purpose Flexible Spending Account Anyone covered by a high deductible health plan Limited to qualifying dental and vision expenses (such as copayments, eyeglasses).
Dependent Care Flexible Spending Account Any benefit-eligible employee Dependent care expenses (such as day care, after school programs or elder care programs) so you and your spouse may continue working, look for employment or attend school full-time. $5,000 
($2,500 if married and filing separate 
tax returns)
FSA Savings Example

Here is an example of how much you can save when you use the FSAs to pay for your predictable health care and dependent care expenses.

* This is an example only. It assumes a 25% federal income tax marginal rate and a 7.7% FICA marginal rate. You will save on state and local taxes which are not reflected in this example.

Account Type With FSA Without FSA
Your taxable income $50,000 $50,000
Pre-tax contribution to Health Care and Dependent 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 and Dependent Care FSA $654 N/A