Flexible Spending Arrangement (FSA)

What is an FSA Employer-sponsored benefit Allows employees to reimburse medical expenses Withheld from pay check pre-tax Federal State SSN/Medicare

How does the plan work? Once a year employees elect an annual amount to be deducted from salary New employees may opt on a quarterly basis ISI withholds from pay check each month Employee submits expenses for reimbursement to plan administrator Use it or lose it

Employee voluntarily elects this option. Each employee determines what amount they want available in their FSA account annually The amount is spread out over the plan year (12 months) in an even amount Initial enrollment period will be less than 12 months New employees the period will be adjusted by the # months left in the plan year Employee cannot make monthly changes to the amount withheld Employee registers with the plan administrator Employee must fill out salary reduction agreement

Qualified expenses Medical & dental expenses for employees and their families Health insurance non-employer premiums paid after taxes Dependant day care expenses Term life and cancer non-employer premiums paid after taxes Excludes disability Transportation expenses for qualified commuter fees

Use it or lose it The annual amount withheld from payroll must be used with the current year Any amount remaining in the employees account is returned to ISI ISI chooses how that money is to be used

Benefit to employee Lessens amount of pay subject to taxes. Savings method for expected expenses. Full election amount of medical expense available upon start of new plan year.