FLEXIBLE SAVINGS ACCOUNT (FSA)
What is a Flexible Spending Account? A Flexible Spending Account enables you to set aside a predetermined dollar amount in an account to cover eligible out-of-pocket health care and dependent day care expenses throughout the year. IRS rules allow you to contribute to your account(s) through payroll deduction on a pre- tax basis (before federal income tax & social security) reducing your taxable income. The dollars set aside in a Flexible Spending Account are actually worth more because they are tax-free. As a participant, you pay no taxes on the contributions or the withdrawals. Any unused money left in the account at the end of the year will be forfeited. Please be conservative with your elections.
Health Care Reimbursement FSA This program allows Gracepoint employees to use pre-free FSA dollars to pay for certain IRS-approved medical*, dental and vision expenses to a maximum of $2,700 a year*. Elected funds will be available as of January 1, 220. Remember to keep receipts for all items purchased through your FSA. The IRS may require you to provide proof of qualified expenses to Discovery Benefits.
Dependent Care FSA The Dependent Care FSA allows Gracepoint employees to use pretax dollars toward qualified dependent care such as caring for children under the age 13. The annual maximum amount you may contribute to the Dependent Care FSA is $5,000 (or $2,500 if married and filing separately) per calendar year*. Examples include:
• The cost for an individual to provide care either in or out of your house • Nursery schools and preschools (excluding kindergarten)
220 Flexible Spending Account Maximums
Health Care Reimbursement
Dependent Care
Monies can be put aside for reimbursement for dependent daycare expenses incurred during the upcoming year up to a $5,000 maximum.
Monies can be put aside to pay for non-covered medical, dental or vision expenses up to a maximum of $2,700. Employees and eligible dependents do not need to participate in the Gracepoint medical, dental or vision plans to participate in the healthcare reimbursement account.
Dependent Care Reimbursement Account & the Federal Tax Credit You have the option to take either a tax credit on your federal income tax return for your dependent care expenses or receive pretax reimbursement of expenses through the reimbursement account. You cannot use the reimbursement account and the federal tax credit for the same expenses.
10
Made with FlippingBook - Online magazine maker