Flexible Spending Accounts (FSAs)

Flexible Spending Accounts (FSAs) offer a convenient way for you to pay for certain health and dependent care expenses while saving on taxes. When you direct part of your pre-tax salary to an FSA, you lower your taxable income. Generally, this means you pay less in taxes and have the opportunity to receive more take-home pay.

You may participate in one or both FSAs, administered by Benefit Strategies, even if you do not enroll in medical, dental, and/or vision plans offered by the Elliot Health System.:

Health Care FSA

The Health Care FSA helps you pay eligible out-of-pocket health care expenses for you and your eligible dependents, that are not covered or fully reimbursed by your medical, prescription drug, dental, and vision coverage. Examples of eligible expenses under a Health Care FSA include plan deductibles, coinsurance, and copayments (please visit www.benstrat.com for a full list of eligible expenses). The calendar year max is $2,500.00.

Dependent Care FSA

The Dependent Care FSA helps you pay for eligible dependent care expenses incurred while you (and your spouse) work. Examples of eligible expenses under a Dependent Care FSA include costs for eldercare or childcare for eligible dependents. The calendar year max is $5,000.00.

Money is diverted out of each of your paychecks on a pre-tax basis and put into a Health Care FSA and/or a Dependent Care Assistance Account. Since the money you choose to put into the FSA accounts are non-taxable, you will save Federal Income Tax (10% – 35%), FICA (7.65%), and, if applicable, State Income Tax (0-6+%). The savings range from 17.65% to 48.65% depending on your federal tax bracket and the state you live in.

Once enrolled, you are allowed to draw money out of the accounts to reimburse yourself for out-of-pocket medical and/or dependent care expenses incurred during the plan year which are not reimbursed from insurance or other sources.

Special Notice

As we are moving to a calendar year, Flexible Spending Account elections made during the May 2016 Open Enrollment will be effective July 1, 2016 through December 31, 2016. During this six month period your maximum election will be half of the calendar year allowance, which is $1,250 for the Health Care FSA and $2,500 for the Dependent Care FSA. There will be a special Open Enrollment period in October 2016 just for the Flexible Spending Accounts. Elections made during this Open Enrollment will be effective January 1, 2017 through December 31, 2017 and you will be able to elect the full annual maximums. As always, up to $500 unused dollars in your Health Care FSA will automatically roll-over into the following plan year.

For a list of possible eligible expenses under the health care and dependent care FSAs, visit the IRS Web site at www.irs.gov and download IRS publications 502 (health care) and 503 (dependent care).

Benefit Strategies, LLC.

Claims Department: (888) 401-3539
www.benstrat.com