FSAs

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Smiths offers two Flexible Spending Accounts (FSAs) — the Heath Care FSA and the Dependent Care FSA. 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. You can participate in one, both or neither of these accounts.

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.
  • Convenient payroll deductions.
  • Helpful budgeting tool — Plan for upcoming expenses, such as orthodontia or new glasses, by setting aside money each paycheck.

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 WageWorks/Health Equity.

Note, you cannot contribute to the Health Care FSA if you are enrolled in the Anthem Advantage HSA medical plan.

Dependent Care FSA

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 WageWorks/Health Equity. They may be contacted at 1-866-206-1165 and http://www.wageworks.com/

Note: The Dependent Care FSA is not to be used for health care expenses for your dependents.

Carry Over

In the past, Health Care FSA funds were use it or lose it, meaning any unused funds were forfeited. Beginning August 1, 2024, you can carry over up to $640 this upcoming plan year, to help you make the most of your money.