FLEXIBLE SPENDING ACCOUNTS ( FSA )
Looking for a way to save money on healthcare and / or dependent day care ? Flexible Spending Accounts ( FSAs ) save you money by reducing the taxes you pay . Your FSA contributions are deducted from each paycheck before federal , FICA and , in most cases , state taxes are calculated . So in effect , you do not pay taxes on your eligible FSA expenses .
HOW DOES AN FSA WORK ?
FSA contributions are taken from your paycheck on a pre-tax basis according to your annual elections . Once you have elected your annual deductions , you cannot change your elections under most circumstances .
When you have an eligible healthcare or dependent day care expense , you can pay for it with tax-free money . The accounts are not connected : you pay for healthcare expenses and dependent day care expenses with separate accounts .
You may use money in your FSA to pay for eligible expenses incurred by you , your spouse and your dependents . You and / or your dependents do not have to be enrolled in the medical plan to participate in the healthcare FSA .
MAXIMUM CONTRIBUTIONS
Healthcare FSA : $ 3,200
Dependent Care FSA : $ 5,000 for single employees or married employee filing jointly . $ 2,500 for married employees filing separately
CARRY OVER
You may carry over up to $ 640 in unused healthcare FSA money from one year to the next . Unused amounts in your Dependent Care FSA cannot be carried over and will be forfeited .
Important : You may only carry over amounts from one year to the next if you enroll in the FSA the following year . If you do not elect the FSA the following year , you will forfeit those rollover funds .
Prepared by Gallagher for the Employees of The Suquamish Tribe 20