Benefits Flashcards
How is FSA taxed and what are the contributions remainder assets treated?
Not income taxed, As well as FICA or FUTA
Max contribution is $3200
Does not apply to employer contributions/flex credits
$640 can remain in the account indefinitely
amount has to be spent 2.5 months after
It’s either a grace period or rolling balance, not both
What are some parameters of the Dependent care FSA payment
Reduced the dependent care credit
Both parents must work or one needs to be a student or disabled
Child must be under 13
Dependent care for FSA if you got married to a non-worker
The $5000 becomes taxable
If the funds aren’t used then it is still taxed and funds are forfeited
FSAs paying cobra and ltc
Cannot because fsas (medical treatment) cannot be used to reimburse employees for premiums paid to ltc and cobra but hsas can
FSA coverage period
The end of the plan year, typically 12/31 or when the employee separates from employment
FSA advantages
Can use benefits at the beginning of the plan year
If all is used, you don’t owe it back to your employer (not taxable)
Employer has no risk just a small admin fee $4-10
Any unused amount is returned to the employer