Flexible Spending Accounts (FSAs) Flexible Spending Accounts (FSAs) help you manage your out-of-pocket expenses by allowing you to set aside money from your pay on a pre-tax basis to help pay for eligible healthcare (medical, dental and vision) and dependent care expenses. Since taxes are not taken out, the money you are reimbursed through the FSA goes further than after-tax dollars when paying for out-of-pocket expenses. Because of the tax benefits associated with FSAs, there are also some restrictions: • You must use the money placed in the account for any given year to pay for eligible expenses you have during that same year. • If you have money left in your account that is not used for eligible expenses during the year that money is forfeited. In other words, “use it or lose it.” • You cannot transfer money back and forth between the healthcare and the dependent care accounts. • You may not change, start or stop your healthcare FSA contributions once the plan year begins, however certain status changes may allow changes in your dependent care FSA. There are three kinds of flexible spending accounts. Each one is described below: Dependent Care FSA The Dependent Care FSA allows you to contribute up to $5,000 annually to cover certain expenses for the care of dependents which allow either you or your spouse to work or attend school full time. A dependent is defined as a child under age 13 claimed as a tax dependent, or other individual living with you (e.g. child over 12, spouse, parent, sibling) who is physically or mentally unable to care for him/herself. UNIFI offers a subsidy of up to $1,000 for the dependent care FSA depending on your annual salary. For example: If You Earn…
You Contribute…*
$25,000 or less
$4,000
$25,001-$35,000
$4,250
$35,001-$45,000
$4,500
$45,001-$55,000 $55,001 or more
$4,750 $5,000
UNIFI Matches… 20% of your contribution 15% of your contribution 10% of your contribution 5% of your contribution 0%
Up to…* $1,000
$5,000
$ 750
$5,000
$ 500
$5,000
$ 250 $ 0
$5,000 $5,000
*Divide these amounts in half if you and your spouse file separate tax returns. - 13 -
For a Total of…*