ASI Flexible Spending Account
A Flexible Spending Account enables you to increase your take-home pay by decreasing your taxable income. You can reduce the costs of insurance premiums, medical expenses not covered by insurance and dependent daycare expenses by paying these costs on a pre-tax basis. Pre-tax denotes that you will not pay state, federal, or FICA withholdings on these earnings. The Plan Year for this benefit is January 1, 2017 through December 31, 2017. There are two Flexible Spending Accounts available: HealthCare Spending account, and the Day Care Spending account.
1. The Healthcare Spending Account allows you to pay for medical, dental, vision, and alternative care expenses with pre-taxed earnings by setting aside a specific monthly portion of your salary into the FSA account for future use. When you incur an applicable expense, you can simply use your FSA debit card at both healthcare and non-healthcare merchants. The IRS requires an annual re-enrollment for the HealthCare Spending account during the annual Open Enrollment period. The amount allowed this year remains at $2,600.
2. The Dependent Day Care Spending Account allows you to pay for dependent daycare expenses with pre-taxed earnings. By enrolling in the Day Care Spending account, you are instructing SSH to set aside a specific monthly portion of your salary into the FSA for daycare expenses. The IRS requires an annual re-enrollment for the Day Care spending account during the annual Open Enrollment period. The amount allowed this year remains at $5,000.