Flexible Spending Accounts (FSAs)

Flexible Spending Accounts (FSAs) allow you to pay for eligible expenses using tax-free dollars. Manage your account at www.optumfinancial.com.

 The Three Types of FSAs Are:

    Healthcare FSA

    Contribute up to $3,300 per year, pretax, to pay for for health care expenses such as copays, prescription expenses, lab exams and tests, contact lenses and eyeglasses. Your entire election amount is available to you on your first day of eligibility. You are not eligible for the Health Care FSA if you are contributing to an HSA. Visit irs.gov Publication 969 for a list of eligible FSA expenses.

    Limited Purpose FSA

    Those enrolled in the HDHP can contribute up to $3,300 per year, pretax, to pay for eligible vision and dental expenses. Your entire election amount is available to you on your first day of eligibility.

    Dependent Care FSA

    Contribute up to $5,000 per year ($2,500 if married and filing separate tax returns), pretax, to pay for daycare expenses associated with caring for elder or child dependents that are necessary for you or your spouse to work or attend school full-time. You cannot use your Healthcare FSA to pay for Dependent Care expenses. Contributions to the Dependent Care FSA are only available for reimbursement after they are deducted from your paycheck.

    How Much Could You Save?

    Here’s an example. Let’s say Tom decides to set aside $2,000 in an FSA for the year. Normally, on that money, he’d pay $560 in federal income tax, $100 in state income tax, and $153 in FICA tax. So, by contributing that $2,000 to his FSA, he’ll get an $813 tax savings for the year.

    Without the FSA, Tom would pay:

    • 28% in federal income tax: $560 savings
    • 5% in state income tax: $100 savings
    • 7.65% in Federal Insurance Contributions Act (FICA) tax: $153 savings

    His total tax savings for the year with an FSA: $813

    Health Care FSA

    Limited Purpose FSA

    Dependent Care FSA
    $100 Minimum
    $3,300 Maximum    		 $100 Minimum
    $3,300 Maximum    		 $100 Minimum
    $5,000 Maximum

    USE IT OR LOSE IT!

    These accounts are “use it or lose it”, which means any funds remaining at the end of the plan year are lost. Spectrum Brands added a 2.5 month grace period to the plans, which means you can incur expenses through March 15 of the next year, that can be used towards your current FSA election. All claims must be submitted no later than March 31.