Flexible Spending Accounts
FSAs offer a convenient way to pay for out-of-pocket health care and dependent care expenses while also saving on taxes.
First, you estimate the amount of your out-of-pocket expenses for the year. That amount is then deducted from your pre-tax income through payroll deductions from each paycheck and deposited into a personal reimbursement account.
Then, when you use your account for eligible expenses, you do not pay federal, social security or state (if eligible) taxes on your contributions.
SCL Health offers two FSA choices. Associates may choose one or both plans to participate in.
Health Care FSA:
- You can use the funds in your FSA to pay for qualified medical expenses not covered by insurance, such as copays, deductibles, dental and vision expenses.
- The maximum annual contribution for 2016 is $2,500.
Dependent Care FSA:
- You can pay for daycare and other similar expenses during your and your spouse’s working hours away from home. To be eligible, the providers must claim this income on their tax return.
- The maximum annual contribution for 2016 is $5,000. A comprehensive Dependent Care contribution chart is listed under the "Dependent Care FSA Contribution Limits" section below.