FLEXIBLE SPENDING ACCOUNT (FSA) DEPENDENT CARE ACCOUNT
TYPICAL ELIGIBLE EXPENSES The following is a partial list of typical expanses eligible for health care FSA reimbursement. A complete list can be found at https://www.irs.gov • Deductible for group health and/or dental plan • Copayments for group health and/or dental plan • Many charges that are not covered by health/dental plan are also eligible for FSA reimbursement, such as: • Eye exams, eyeglasses, contact lenses; • Hearing exams, hearing aids, • Physical exams and mammograms in excess of one per year; • Medical expenses of a dependent not covered by a health plan • Orthodontia YOUR CONTRIBUTION The Internal Revenue service limits the amount you can contribute to a dependent care FSA, up to: • $5,000 per year, if you are married and filing a joint return, or if you are a single parent • $2,500 per year, if married and filing separate federal tax returns Estimate what your daycare expenses will be for the year, and allocate enough from your pay, up to the allowable contribution, to cover those expenses. JUST REMEMBER THIS: FSA dollars are “use-it-or- lose-it” funds. Account balances cannot be carried over from year to year. If you have unused funds at the end of the plan year, or at the end of any applicable grace a period, those funds will be forfeited. That’s an IRS requirement. So estimate the amount you want to contribute to your FSA carefully. • A spouse who is physically or mentally incapable of self-care and has the same principal residence as you • A tax dependent of yours who is under age 13, or • Any other tax dependent of yours, such as an elderly parent, who is physically or mentally incapable of self-care and has the same principal residence as you QUALIFYING DEPENDENT A qualifying dependent is: • Vision corrective surgery (such as Lasik) • Smoking cessation programs an related prescription drugs.
JL Marine Systems offers a both Health Care and Dependent Care Flexible Spending Account to all active employees working 24 or more hours per week. You may elect to have both types of accounts and contribute separate pretax dollar amounts to each. These accounts are kept completely separate; for instance, you could not be reimbursed for dependent care expenses from the health care account. HEALTH CARE ACCOUNTS A health care FSA can reimburse you for eligible medical, dental and vision expenses, up to the amount you elect to contribute for the plan year. Beginning in January 2018, the IRS limits the amount you may contribute to $2,650 per year. This amount will increase in future years to reflect cost-of-living increases. A Dependent Care FSA is a great way to pay dependent care expenses and lower your taxable income. Dependent Care Spending Accounts are pre-tax, payroll deduction accounts established to reimburse employees for out-of-pocket dependent care expenses. To be considered eligible, dependent care expenses must be incurred by an employee who must arrange for care of an eligible dependent in order to work. For married employees, dependent care must be necessary so that both spouses can work YOUR CONTRIBUTION The Internal Revenue service limits the amount you can contribute to a dependent care FSA, up to: • $5,000 per year, if you are married and filing a joint return, or if you are a single parent • $2,500 per year, if married and filing separate federal tax returns Estimate what your daycare expenses will be for the year, and allocate enough from your pay, up to the allowable contribution, to cover those expenses. JUST REMEMBER THIS: FSA dollars are “use-it-or-lose- it” funds. Account balances cannot be carried over from year to year. If you have unused funds at the end of the plan year, or at the end of any applicable grace a period, those funds will be forfeited. That’s an IRS requirement. So estimate the amount you want to • elderly parent, who is physically or mentally incapable of self-care and has the same principal residence as you • A spouse who is physically or mentally incapable of self-care and has the same principal residence as you
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