Benefits Flashcards

1
Q

How is FSA taxed and what are the contributions remainder assets treated?

A

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

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2
Q

What are some parameters of the Dependent care FSA payment

A

Reduced the dependent care credit
Both parents must work or one needs to be a student or disabled
Child must be under 13

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3
Q

Dependent care for FSA if you got married to a non-worker

A

The $5000 becomes taxable
If the funds aren’t used then it is still taxed and funds are forfeited

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4
Q

FSAs paying cobra and ltc

A

Cannot because fsas (medical treatment) cannot be used to reimburse employees for premiums paid to ltc and cobra but hsas can

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5
Q

FSA coverage period

A

The end of the plan year, typically 12/31 or when the employee separates from employment

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6
Q

FSA advantages

A

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

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