Flexible Spending Accounts (FSA) “Health Care” & “Dependent Care”

1. Flexible Spending Accounts (FSA)To proceed to the next slide, click the “NEXT” buttons as shown here:

2. Flexible Spending Accounts (FSA)“Health Care” & “Dependent Care” A way for you to set aside money on a tax-free basis for health care and/or dependent care expenses Health Care FSA: Covers out-of-pocket healthcare expenses, such as prescription drugs, co-pays, doctor visits, glasses, chiropractic, exams, dental care and more. • Who can use the funds? The FSA account can be used for the healthcare expenses of yourself and your tax dependents. Dependent Care FSA: Covers expenses associated with child day care, after-school care. school camps, adult daycare, etc. • Who can use the funds? The Dependent Care account can be used for children under age 13 who are claimed as qualifying dependents and disabled spouses or dependents. Click here for a complete list of eligible expenses

3. Flexible Spending Accounts (FSA)“Health Care” & “Dependent Care” Contributions & Claims: • Whatever amount you sign up for at the beginning of a calendar year will be deducted in equally-sized deductions 26 times per year; If you’re enrolling mid-year, your election will be divided by the remaining number of pay periods in that year • Healthcare FSA: • You may contribute up to the $2,700 limit in 2019 • Allows you be reimbursed for eligible expenses right away, even before you’ve contributed enough money to cover the reimbursement costs • You can pay for HC expenses using a Discovery debit card that’s provided upon enrollment, or request reimbursement afterwards via check or direct deposit • Dependent Care FSA: • You may contribute up to the $5,000 limit in 2019 • Requires you to have contributed enough money to cover each reimbursement of expenses before a reimbursement is made • Reimbursements are made though checks mailed to your home or via direct deposit • If you re-enroll in an FSA in the following year, you receive the benefit of a 2 ½ Month Grace Period. This grace period allows you to spend remaining FSA dollars through March 15 of the following year. All claims must be submitted by no later than March 30th of the following year. (This grace period applies to either FSA type.)

4. FSA Tax Savings An example of the tax savings you could see… A couple work outside the home and together they earn $50,000/year. Let’s suppose they elect a Healthcare FSA in the amount of $2,000 or $166.67/month. Let’s also assume they pay 20% in income taxes. This couple, spending the same amount of $ on healthcare in both circumstances, has an extra $33.33 remaining at the end of the month with an FSA than they would without an FSA because of tax savings. That’s an extra $400 per year!

5. Flexible Spending Accounts (FSA) – Tax Savings A few things to note… • Don’t forget that Alex can help you with FSA’s too (in addition to just the medical plan selection) • In order to continue an FSA from year to the next, you must re-enroll during Annual Enrollment. One year’s election for FSA will not roll over in to the next year • If you separate employment with LSS, you can elect to continue your Healthcare FSA participation through COBRA and continue to submit claims for reimbursement. If you do not though, you can not submit any claims for services after your last day of employment. For more information visit the LSS Benefits site at https://lsslife.com/benefits/#fsa

6. Additional Resources Have more questions beyond what’s explained in this video? • Visit the LSS Benefits Website @ www.LSSLiving.org/Benefits • The site provides detailed information regarding all benefits offered by LSS • Contact your Human Resources representative(s) • Your local HR team is available to answer any questions you may have and/or assist you in the enrollment process within Workday • Contact the vendor directly • A complete list of contact information is posted on the LSS Benefits Website