Flexible Spending Account
Effective October 1, 2020 A Flexible Spending Account, or FSA, lets you set aside pre-tax money from your paychecks to spend on out-of- pocket healthcare expenses (i.e. co-pays, deductibles, over-the-counter items, etc.). Money that goes into an FSA is pre-tax, so by anticipating your family’s health care and dependent care costs for the next year, you can actually lower your taxable income. Health Care Reimbursement FSA This program lets employees pay for certain IRS-approved medical care expenses not covered by their insurance plan with pre-tax dollars. The annual maximum amount you may contribute to the Health Care Reimbursement FSA is $2,750. Some examples include: Deductible, Prescriptions & Doctor Visit Co-Payments Over-the-Counter Medicines with a Prescription Vision services, including Lasik Eye Surgery, Glasses & Contacts
Hearing services, including hearing aids and batteries Orthodontics, Dental deductibles and coinsurance Acupuncture Dependent Care FSA – Access To Amount Contributed Year To Date Only
The Dependent Care FSA allows employees to use pre-tax dollars towards qualified dependent care for children under the age 13 or caring for elders. The annual maximum amount you may contribute to the Dependent Care FSA is $5,000 for 2020, (or $2,500 if married and filing separately). Examples include: The cost of child or adult dependent care The cost for an individual to provide care either in or out of your house Nursery schools and preschools (excluding kindergarten) FSA Smart Tips Cover any significant medical expenses early in the year using your FSA. You’ll spend the remainder of the year paying yourself back with the regular payroll deductions. Save your receipts as proof of purchase in order to be reimbursed for your health care expenses from your FSA. So if you are making purchases that are eligible for reimbursement, you’ll want to keep them separate from other items. Take advantage of the pre-tax savings and use your FSA dollars. Remember, unused money in an FSA at the end of the year is lost.
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