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FSA•s City of Cocoa I Employee Benefit Highlights 12020-2021 Flexible Spending Accounts The City offers Flexible Spending Accounts(FSA)administered through TASC.The FSA plan year is from October"!to September 30. If employee or family member(s)has predictable health care or work-related day care expenses,then employee may benefit from participating in an FSA.An FSA allows employee to set aside money from employee's paycheck for reimbursement of health care and day care expenses they regularly pay.The amount set aside is not taxed and is automatically deducted from employee's paycheck and deposited into the FSA.During the year,employee has access to this account for reimbursement of some expenses not covered by insurance.Participation in an FSA allows for substantial tax savings and an increase in spending power.Participating employee must re-elect the dollar amount to be deducted each plan year.There are two(2)types of FSAs: Health Care FSA Dependent Care FSA This account allows participant to set aside up to an This account allows participant to set aside up to an annual maximum of$5,000 if annual maximum of $2,750. This money will not be single or married and file a joint tax return ($2,500 if married and file a separate taxable income to the participant and can be used to tax return)for work-related day care expenses.Qualified expenses include day care offset the cost of a wide variety of eligible medical j centers,preschool,and before/after school care for eligible children and adults. expenses that generate out-of-pocket costs.Participating employee can also receive reimbursement for expenses Please note,if family income is over$20,000,this reimbursement option will likely related to dental and vision care(that are not classified i save participants more money than the dependent day care tax credit taken on a tax as cosmetic). return.To qualify,dependents must be: • A child under the age of 13,or Examples of common expenses that qualify for reimbursement are listed below. • A child, spouse or other dependent who is physically or mentally incapable of self-care and spends at least eight(8) hours a day in the • participant's household. Please Note:The entire Health Care FSA election is available for use on Please Note:Unlike the Health Care FSA,reimbursement is only up to the amount that has been deducted the first day coverage is effective. from participants paycheck for the Dependent Care FSA. A sample list of qualified expenses eligible for reimbursement include,but not limited to,the following: ✓ Prescription/Over-the-Counter Medications ✓ Physician Fees and Office Visits ✓ LASIK Surgery ✓ Menstrual Products ✓ Drug Addiction/Alcoholism Treatment ✓ Mental Health Care ✓ Ambulance Service ✓ Experimental Medical Treatment ✓ Nursing Services ✓ Chiropractic Care ✓ Corrective Eyeglasses and Contact Lenses ✓ Optometrist Fees ✓ Dental and Orthodontic Fees ✓ Hearing Aids and Exams ✓ Sunscreen SPF 15 or Greater ✓ Diagnostic Tests/Health Screenings ✓ Injections and Vaccinations ✓ Wheelchairs Log on to http'/www.irs.gov/publications/p502/index.html for additional details regarding qualified and non-qualified expenses. 21 13 ©2016,Gehring Group,Inc.,All Rights Reserved