Flexible Spending Accounts

Smiths offers three Flexible Spending Accounts (FSAs) — the Heath Care FSA, Limited Purpose FSA, and the Dependent Care Account. Using these accounts effectively will help you take full advantage of their money-saving potential. It’s like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money.

Key Features At A Glance:

• Tax-free money — Money goes in tax-free and comes out tax-free when it’s used for eligible expenses.
• You choose how much money you wish to contribute to your FSA.  This annual amount will be available on Day 1, and you will pay back the “loan” in increments on each paycheck. 
• Helpful budgeting tool — Plan for upcoming expenses, such as orthodontia or new glasses, by setting aside money each paycheck. When an expense is incurred, you may use your FSA card to pay for that expense.
• Unused funds up to $660 may be rolled over to the next year.

Health Care FSA

With the Health Care FSA, you put money aside each paycheck and save money by using pre-tax dollars to pay for medical, dental and vision expenses not paid by your health care plans, including deductibles, coinsurance and Rx copays.

When you incur an eligible expense, you either pay the expense and submit for reimbursement from your FSA account, or you use your FSA debit card and eliminate the paperwork and reimbursement wait time.

There are dozens of eligible healthcare expenses eligible to be paid with a FSA or HSA. Checkout the full list at www.irs.gov/publications/p502.

The Health Care FSA is administered by BenefitsAssist

Run out period – If you have funds left over from 2024/2025 plan year, you must submit for reimbursement through BenefitsAssist. 

Note, you cannot contribute to the Health Care FSA if you are enrolled in the HDHP (HSA Eligible) medical plan.

New! Limited Purpose FSA

With the Limited Purpose FSA, it works much the same as the Health Care FSA, except it may only be used on eligible dental and vision expenses.

Anyone is eligible.  You can elect both and HSA and a Limited Purpose FSA!

Dependent Care Account (DCA)

Opening a Dependent Care FSA is a smart way to manage costs for your eligible children and for elder care for your eligible dependent adults. When you enroll, you contribute each paycheck — before Social Security (FICA) and income taxes are calculated — to pay for eligible out-of-pocket  dependent care expenses.

This includes:

• Licensed day care
• Nursery school fees
• Babysitter fees
• Elder care facilities

You may contribute up to $5,000 per married couple (or up to $2,500 if you are married and file separate tax returns) annually to a Dependent Care FSA. Unlike the Health Care FSA, the full amount of your election is not available at the beginning of the plan year.

The Dependent Care FSA is administered by BenefitsAssist. They may be contacted at 1-865-769-2800 and www.benefitsassist.net

Note: The Dependent Care Account (DCA) is not to be used for health care expenses for your dependents.

Carry Over

You can carry over up to $660 this upcoming plan year, to help you make the most of your money. This applies only to the 2 FSAs. There is no carry over for the DCA.