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Flexible Spending Accounts

By enrolling in one or both Flexible Spending Accounts (FSAs), you can save
money on your eligible health care and/or dependent care expenses and
reduce your income taxes. When you enroll you specify how much to direct
from your paychecks to your FSA before payroll taxes are withheld. Your
contributions are deducted in equal amounts throughout the year.

How Much to Contribute: With this tax-free money in your account, you
can pay eligible expenses. You never pay taxes on this money as long as
you use it to pay eligible expenses. The amount you direct to your account(s)
should be based on an estimate of how much you will spend out-of-pocket
on eligible medical expenses for your Medical FSA.

When to Enroll: Open enrollment for the FSAs is held in November each year with an effective date
of January 1. If you are newly hired or newly eligible, you can enroll during your 30-day enrollment period.
Your participation will begin the following month and will continue through the remainder of the calendar
year. Once you enroll, you cannot change your contribution election until the next annual Open Enrollment
period or following a qualified change in status. Your annual election does not carry over from year to year.
To continue participating, you must enroll every year.

Medical FSA

You do not have to enroll in a medical plan to participate in the Medical FSA.

Contributions: You may contribute up to $2,600 annually.

Paying Eligible Expenses: You can pay for eligible health What are eligible expenses?
care expenses for you and your family if the expenses are not ?
covered by medical, dental or vision plans. This includes
expenses that count toward deductibles, copays and ? For dependent care expenses, go to
coinsurance. See the box to the right for details. A debit card www.irs.gov/pub/irs-pdf/p503.pdf.
is provided to make payment easier. However, you should
keep receipts to verify that expenses paid from your FSA are You can also go to www.discoverybenefits.com
eligible.

Dependent Care FSA What Else to Know about FSAs

Use your Dependent Care FSA to pay eligible daycare ? Money in your Medical FSA and
expenses that allow you and/or your spouse to work, or for
your spouse to attend school full-time. Eligible dependents Dependent Care FSA cannot be
include your children under age 13, handicapped children of transferred from one account to the other.
any age, and your spouse or parent who is incapable of self-
care. ? You can roll over up to $500 of unused

Contributions: You may contribute up to $5,000 annually Medical FSA funds at the end of the year
if you are married and file a joint tax return or if you are to the next year (applies to Medical FSA
single. You may contribute up to $2,500 annually if you are only).
married and file separate tax returns.
? You have up to 30 days from the end of

the plan year to submit eligible expenses
that you paid in the prior year.

Paying Eligible Expenses: You can pay expenses for day care centers, summer day camps, nursery
school, before and after-school care, and care inside the home, as long as the provider is not your
dependent child under the age of 19 or anyone that you claim as a tax dependent. See the box for a listing
of eligible expenses.

11 2016-2017 Benefits Guide