FSA open enrollment through 11/30!
Save by enrolling in a Medical or Dependent Care FSA today!
FLEXIBLE SPENDING ACCOUNT (FSA)
EBI offers Flexible Spending Accounts through Benefit Resource, Inc. Flexible Spending
Accounts (FSAs) allow you to use pre-tax dollars to pay for certain health care and
dependent care expenses. The IRS determines which expenses are eligible, for
Each year you decide how much to contribute on a pre-tax basis. The annual amount you
select is deducted from your paycheck in equal amounts each pay period before federal,
social security, and in most cases, state income taxes are deducted. Then, when you incur
eligible expenses during the year, you can request reimbursement with your untaxed money
from the FSA. The maximum you may set aside is $2,500 per calendar year.
Your Flexible Spending Account allows you to pay for certain health care expenses that are
not covered or are only partially covered by your health care plans (medical, dental, vision,
and prescription drugs). Eligible expenses can be incurred by you or any of the eligible
dependents that you claim on your federal income tax return.
You may use your FSA for expenses such as:
• Copays, coinsurance and deductible amounts for your medical, dental, vision, and
prescription drug plans
• Weight loss and smoking cessation programs (when prescribed by a physician)
• Out-of-pockets fees for acupuncture, chiropractic care, laser eye surgery and
DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT
The Dependent Care FSA is designed for people who work and need to pay for dependent
care. You are eligible to participate if you are single or married. However, if you are
married, your spouse must either work, or go to school full-time or be unable to care for your
dependents due to a disability. Dependent care can be for your children, spouse, or
parents. Dependents must live with you and be claimed as a dependent on your federal
income tax return. The total dollar amount you can contribute for your household is limited
to the smallest of the following amounts:
• $5,000 if single or if married & filing jointly; $2,500 if married & filing separate return
• Your earned income
• The earned income of your spouse
IMPORTANT IRS RULES
1. Plan Carefully! Any money in excess of $500 remaining in your Flexible Spending Accounts that you do not use by December 31 will be forfeited. This is sometimes known as the “use it or lose it” rule. EBI is offering a $500 annual roll over option to provide additional saving flexibility.
2. You cannot change or stop your contributions to the FSAs during the year unless you
have a qualifying change in status (see page 3 for examples of qualifying events).
3. Money cannot be transferred between accounts. For example, you cannot use your
Dependent Care FSA to reimburse yourself for health care or vice versa.
4. Over the counter drugs are not considered eligible expenses unless they are prescribed
by a doctor.