FLEXIBLE SPENDING ACCOUNTS (FSA)
FLEXIBLE SPENDING ACCOUNTS (FSA)
The Flexible Spending Accounts (FSAs) allow you to pay for eligible healthcare and dependent care expenses using tax-free dollars - money taken out of your paycheck before income or Social Security taxes have been calculated. Our FSAs are administered by TaxSaver Plan. Call 800.328.4337 or go to www.taxsaverplan.com for more information.
HEALTH CARE FSA
A Health Care FSA allows you to set aside pre-tax dollars to help pay for certain out-of-pocket healthcare expenses.
- Most medical, dental and vision care expense that are not covered by your health plan, such as co-pay, co-insurance, deductibles, eyeglasses and doctor-prescribed over-the-counter medications.
- Annual Contribution Limited Maximum contribution is $2,750 per year.
- You must actively enroll in an FSA each year if you want to participate.
DEPENDENT CARE FSA
Reimbursement for dependent care claims is limited to the total amount that is deposited in your account at that time.
- Allows you to set aside up to $5,000 to pay for child or elder care expenses on a pre-tax basis.
- Eligible dependents include children under the age of 13 and dependents of any age that are incapable of caring for themselves.
- Dependent care expenses are reimbursable as long as the provider is not anyone considered your dependent for income tax purposes.
- In order to be reimbursed, you must provide the tax identification number or Social Security number of the party providing care.
Eligible Dependent Care Reimbursement Account Expenses
This account covers dependent day care expenses that are necessary for you and your spouse to work, or attend school full time. The dependent must be a child under age 13 and claimed as a dependent on your federal income tax return, or a disabled dependent that spends at least eight (8) hours a day in your home. Examples of eligible dependent care expenses include:
In-home baby-sitting services (not by an individual you claim as a dependent)
- Care of a preschool child by a licensed nursery or day care provider
- Before- and after-school care
- Day camp
- In-house dependent care provider
General FSA Rules and Restrictions
In exchange for the tax advantages FSAs offer, the IRS has imposed the following rules and restrictions for Dependent Care FSAs:
- For Dependent Care FSAs, your expenses must be incurred during the plan year. The filing deadline is the last day in April following plan year end or 30 days after termination.
- You cannot participate in Dependent Care FSA and claim a tax deduction at the same time.
- You must “use it or lose it”— any unused funds will be forfeited.
- You cannot change FSA election in the middle of the plan year unless you have a qualified life status change such as a marriage, divorce or birth of a child.
If you have benefits questions, send them to psbenefits@clubcorp.com