Flexible Spending

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Flexible Spending Accounts (FSAs)

Offering choice and tax savings through a
Health Care and Dependent Care Account
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• What if you could buy
• your eyeglasses on sale?

200
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• With
• a Flexible Spending Account...

Only 150
200
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• What if you could pay less for your
  orthodontia expenses?

1,500
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• With
• a Flexible Spending Account...

You could save 375!
1,500
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• What if you could pay for your
• childs daycare tax-free?

5,000 annually
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• With
• an Flexible Spending Account...

Tax- free
5,000 annually
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• Would you pass up savings like these?

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• You can save on many health
• care and dependent care expenses, if you
  participate in the flexible spending account
  
• plans.

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• Heres how the tax savings available
• through FSAs work

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• 1 of your pay before taxes

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• Take out social security taxes

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• And federal income taxes

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• And state income taxes

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• Heres what is left...

Ouch!
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• FSAs allow you to set aside
• before-tax money

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• Without an FSA, you would need more
  money to pay for the same
• item

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How much can you save?

• Federal Income Tax 15 to 39
• State Income Tax 0 to 9
• Social Security Tax 7.65

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• Two kinds of Flexible Spending
  Accounts
• (FSAs)

• Health Care AccountYou wont have to pay taxes
  on eligible out-of-pocket health care expenses.
• Dependent Care AccountYou can be reimbursed for
  eligible child and dependent care with pre-tax
  dollars.

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• Your FSA dollars are
• never taxed...

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• Not when they go into your account

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• And not when you receive your reimbursement

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• Lets take a closer look at eligible
• expenses for each
• account...

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• Health Care FSA

• Any out-of-pocket medical expense

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• Eligible expenses

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• Eligible expenses

Eye care, glasses, contacts and solutions
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• Eligible expenses

Eye care, glasses, contacts and solutions
Dental and orthodontic care
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• Eligible expenses

Doctor visit copayments and deductibles
Eye care, glasses, contacts and solutions
Dental and orthodontic care
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and more...

• Prescription drugs
• Prescribed birth control
• Fees over reasonable and customary
• Vaccinations
• School and work physicals
• Chiropractic care
• Psychiatric care
• Hearing aids/batteries
• Dermatologists fees

• Wheelchair
• Crutches
• Assistance for the handicapped
• Diabetic supplies
• Orthopedic shoes
• Well baby care
• Amounts over plan limits
• Physical therapy
• Acupuncture

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• And theres still more ...

Check your enrollment kit for more information on
eligible and ineligible expenses
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• Should you enroll?

Do you expect to pay for any of these expenses
for you and your family out of your own pocket?
Yes No
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• Should you enroll?

Do you expect to pay for any of the expenses
mentioned out of your own pocket?
Yes No
You should enroll!
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Dependent Care FSA

• Any dependent care that makes it possible for you
  (and your spouse, if applicable) to work
• Care providers must report the income

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• Eligible expenses

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• Eligible expenses

Child care
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• Eligible expenses

Child care
Elder care
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• Eligible expenses

Child care
Elder care
Care for disabled dependents
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• Eligible providers

Dependent/child care centers ? If more than 6
children, state and local regulations
must be met
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• Eligible providers

In-home providers ? your home or
providers ? cannot be spouse, dependent or your
child under 19 ? can be housekeeper who provides
care
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• More information...

Check your enrollment kit for more information on
eligible and ineligible dependents and expenses
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• Should you enroll?

If you have dependent care expenses Complete
the worksheet to compare FSA savings to the
Federal Tax Credit Consider your needs
throughout the year Make sure your provider
meets the requirements
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• Should you enroll?

If you have dependent care expenses Complete
the worksheet to compare FSA savings to the
Federal Tax Credit Consider your needs
throughout the year Make sure your provider
meets the requirements
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You need to know...

• Expenses must be incurred during the plan year
• You cannot roll over leftover funds to the next
  plan year
• Cannot change election amount unless you have an
  eligible change in status

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You cant lose money if you estimate carefully!
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• Eligible expenses must be incurred during plan
  year

PLAN YEAR END
LAST MONTH OF PLAN YEAR
START OF NEW PLAN YEAR
PAID BILL
DENTIST
ELIGIBLE
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• Eligible expenses must be incurred during plan
  year

PLAN YEAR END
LAST MONTH OF PLAN YEAR
START OF NEW PLAN YEAR
DENTIST
PAID BILL
INELIGIBLE
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• FSAs Start to Finish

Lets walk through the process from your
election through reimbursement so you can see
how easy it is.
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FSAs Start to Finish

• You elect how much you want to put into each
  account for the plan year
• Health care and dependent care accounts are
  separate

FLEXIBLESPENDINGACCOUNT
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FSAs Start to Finish

• Each payday, an equal portion of your election is
  taken out of your paycheck before taxes
• These whole dollars are put into your FSA

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FSAs Start to Finish

• Incur an eligible expense
• Then, submit a Reimbursement Request to Ceridian
  Benefits Services.

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FSAs Start to Finish

• You are reimbursed with tax-free dollars!
• By check or direct deposit, whichever you choose.

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FSAs Start to Finish

• Annual election available for Health Care Account
  on Day One
• Can only be reimbursed for Dependent Care
  expenses as money is contributed

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• FSAs Start to Finish

Its that simple!
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To enroll, follow these steps...

• Review your enrollment kit.
• The plan year runs from July 1, 2001 to June 30,
  2002
• Estimate your expenses.
• Your election form is due May 31, 2001

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• Questions?
• Call Brenda Robinson 757-226-4021
• I will only be in the office May 25 and May 30.
  You may also call Ceridian directly
• 1-877-799-8820