Your FSA Options
Health Care FSA — If you do not elect medical coverage or do not qualify for a Health Savings Account (HSA), you may contribute from $300 to $2,700 per year to the Regular Health Care FSA to pay for eligible unreimbursed medical, dental, vision and over-the-counter medication expenses obtained with a prescription. If you enroll in the CDHP and participate in an HSA, you may contribute from $300 to $2,700 per year to the Limited Purpose Health Care FSA to pay for eligible unreimbursed dental and vision expenses only.
Dependent Care FSA — You may contribute from $300 to $5,000 ($2,500 if married and filing separate tax returns) each year to help pay for eligible child- and elder-care expenses you incur to take care of your eligible child or parent while you are working. The Dependent Care FSA cannot be used to pay medial expenses.
You can participate in either a Health Care FSA or Dependent Care FSA, or you can participate in both. While you can participate in both, the amounts in your Dependent Care FSA can only be used to pay for child care or elder care expenses you incur to enable you to work. The Dependent Care FSA cannot be used to pay any health care expenses. The Health Care FSA can only be used to pay health care expenses. The Limited-Purpose Health Care FSA can only be used to pay dental and vision expenses.
When FSA Coverage Begins and Ends
When Coverage Begins
When you first join the company as an eligible employee, participation in the flexible spending accounts begins on the first of the month after you have two continuous months of service, provided you have enrolled within 31 days of your eligibility period.
When Coverage Ends
Generally, participation in the flexible spending accounts ends when you:
Terminate employment with DallasNews Corporation (effective on your last day of active employment)
Cancel or drop coverage
Stop making any required contributions to the accounts
Die
Coverage also ends if the plan is terminated, your employer stops participating in the plan or the plan is amended to terminate coverage for a group or class of individuals that includes you.
You may be able to continue your participation in the Health Care FSA through COBRA. More information is provided in
Continuation of Coverage.
How the Accounts Work
Save on Taxes
Federal tax laws allow employers to offer flexible spending accounts that help you save money by reducing the amount of your pay that is subject to federal (and most state) income taxes, Social Security and Medicare taxes.
The flexible spending accounts allow you to be reimbursed for eligible dependent and health care expenses using dollars deducted from your paycheck before taxes are taken out. These before-tax dollars are contributed to each account. Then, when you submit an eligible expense, you are reimbursed with dollars that are never subject to tax. This lowers your taxable income, so you pay less in tax.
Both the health care and dependent care flexible spending accounts are administered by TaxSaver Plan, an independent company, which establishes your accounts and processes your reimbursements.
You make contributions to your account through before-tax payroll deductions. When you incur an eligible health or dependent care expense, you submit a claim for reimbursement. The claims administrator then reimburses you from the appropriate account for the amount of the expense.
Process Overview
Decide if you want to participate. Your estimated expenses and tax savings may affect your decision. You may want to consult a tax advisor before enrolling in these accounts.
If you choose to participate, decide how much you are going to contribute to each account based on your estimated expenses for the coming year. Your annual election is divided by the number of pay periods per year and deducted from each paycheck on a before-tax basis.
When you incur an eligible expense, obtain a receipt with a date, type of service and cost of services rendered.
Submit a claim form for reimbursement to the claims administrator and attach your receipt. You may be required to submit documentation for proof of eligibility if you use the Flex Debit Card (the debit card is available to Regular Health Care FSA participants only).
The claims administrator reimburses you by check or electronic fund transfer with before-tax dollars from the appropriate account.
No Transfers Between Accounts
Your Health Care FSA and Dependent Care FSA are separate accounts. You cannot transfer money between them. For example, you could not use money in your Dependent Care FSA to pay for an eligible health care charge and you cannot transfer unused dollars in your Dependent Care FSA to your Health Care FSA.
Use It or Lose It Rule
The law requires that the accounts operate on a use-it-or-lose-it basis, meaning you forfeit any money remaining in your flexible spending accounts after all eligible expenses have been reimbursed. Your expenses claimed for reimbursement must be for health care or dependent care services you or your dependents received during the plan year (January 1 through December 31) or during the grace period (ending March 15 of the following year) and will be paid only with amounts you contributed to the accounts (plus any matching amounts you receive from the company).
To receive reimbursement for health care expenses, you and your dependents must incur the eligible expenses during the time period you are making contributions to your Health Care FSA. All claims for reimbursement must be postmarked by April 30 of the following year to be eligible for payment.
You will receive a statement of your account activity each time you are reimbursed, so that you can track your reimbursements. You can also access your account information on the TaxSaver Web site at
www.taxsaverplan.com.
Changing Your Contributions
Each fall during annual open enrollment, you can make a new decision on how much you want to contribute to your accounts for the coming year. Your decision remains in effect for the rest of the calendar year. You may not change the amount of your contributions unless you have a qualified
change in status.
Health Care FSA
A Health Care FSA reimburses you for health care expenses that are not reimbursed by any other plan.
Who Is Covered
You can use a Health Care FSA to pay eligible expenses for:
You
Any
child who lives with you and whom you claim as a tax exemption (a child of a divorced employee is eligible for coverage even if the employee does not claim the child as an exemption)
Any individual who lives with you at least eight hours a day and depends on you for at least half of his or her financial support or is claimed as an eligible dependent on your federal tax return
Even if you, your spouse or children are not covered by DallasNews Corporation’s medical, dental or vision plans, you may still make contributions to the Health Care FSA.
Your Contributions
During annual enrollment, you decide how much to contribute to the Health Care FSA for the coming year. If you elect to participate, you can contribute a minimum of $300 and a maximum of $2,700 to the account each year.
The amount you elect to contribute is divided by the number of paychecks you receive during the year and deducted from each paycheck before taxes are taken out.
Getting Reimbursed
Here is how the Health Care FSA works:
You incur a health care expense while you are making contributions to the Health Care FSA and submit a claim to your health care plan.
When you receive an Explanation of Benefits (EOB) from your health plan, send a copy, along with your Health Care Account claim form, to the address on the form.
If your health care expense is not reimbursed by any health care plan, submit the receipt with your Health Care Account claim form. The receipt should show the name of the provider, the date of service, the cost of the service and a list of the different services or items you received.
Claims are processed weekly. You may be reimbursed up to the full amount you have elected to contribute for the year (less any amounts you have already claimed). If your claim is for more than the amount in your account, your ongoing contributions will repay your account for any earlier reimbursements that you received.
You may obtain a claim form on this site (see left navigation), from the
claims administrator or from the TaxSaver Web site at
www.taxsaverplan.com. Your claim must be postmarked by April 30 of the following year to receive reimbursement. Any money from the prior plan year that is left in your account after April 30 will be forfeited, as discussed in
Use It or Lose It Rule.
Flex Debit Card
The Flex Debit Card allows you to pay for current-year health care expenses directly from your Health Care FSA. Limited Purpose Health Care FSA participants may only use the debit card for dental and vision expenses.
You can use your Flex Debit Card at your health care provider’s office or service location, such as an eye care center (or pharmacy with the Regular Health Care FSA). You do not need to provide supporting documentation if:
The amount you are paying with your card is the amount of your company-sponsored plan’s copay.
You have already filed your initial monthly orthodontia claim for this plan year and the amount is the same as the previous orthodontia payment.
The amount you are paying is for a recurring charge for which you have previously filed a claim.
When You Must Provide Supporting Documentation
When you use the Flex Debit Card for certain expenses, you must provide supporting documentation. If required, you will receive an e-mail from TaxSaver Plan advising what is needed. Some examples are if:
Regular Health Care FSA Examples
The amount you are paying with your Flex Debit Card does not equal your medical plan’s copay (applicable after you meet your deductible and use the card for prescriptions that have a flat copay). For example, you can use the card but will also need to provide supporting documentation if you use it to pay deductibles, coinsurance expenses, non-covered items, or copays under your spouse’s or dependent’s plan.
You use the card to buy eligible non-prescription items, such as bandages, orthodic shoe inserts or contact lens solution. If you are buying prescriptions at the same time as the eligible non-prescription items, you should pay for your prescriptions as one transaction and pay for your eligible non-prescription items separately. This way, you only need to include the non-prescription items on your claim. (Remember that you may not use the card to pay for any expenses that are not eligible for reimbursement under the Health Care FSA.)
You are using the card for the first time during the plan year to pay a monthly orthodontia visit or a coinsurance amount on a prescription.
Limited Purpose Health Care FSA Examples
You use your Flex Debit Card to pay deductibles and coinsurance expenses under your vision or dental plan, or copays under your spouse’s or dependent’s vision or dental plan.
You are using the card for the first time during the plan year to pay a monthly orthodontia visit.
Eligible Health Care Expenses
Eligible health care expenses must be:
An expense not paid by any other benefit plan (whether sponsored by DallasNews Corporation or any other plan)
Incurred while you were an eligible participant during the plan year
For procedures that are
medically necessary (an expense that could be considered cosmetic will not be eligible, for example teeth whitening)
Here are some examples of eligible expenses:
Out-of-pocket expenses,
deductibles and
coinsurance not paid by your health care plan or your spouse’s employer-sponsored plan
Charges in excess of your health plan’s benefits, such as orthodontia
Other health care expenses (except insurance premiums) considered tax-deductible by the IRS — refer to IRS publication 502 for detailed information
For a complete listing of eligible expenses, refer to the TaxSaver Web site at
www.taxsaverplan.com.
Ineligible Health Care Expenses
You must reimburse your Health Care FSA if you use your Flex Debit Card to pay for an ineligible expense or do not provide supporting documentation when requested. TaxSaver Plan will notify you if it receives an ineligible expense. You must either verify the expense with a claim or reimburse your account. Your card will be deactivated if you do not substantiate the expense.
You may not use your debit card for eligible expenses from the prior plan year. These prior year’s claims for reimbursement must be submitted directly to TaxSaver Plan.
Excluded Health Care Expenses
Expenses that the IRS does not allow you to have reimbursed through your Health Care FSA include, but are not limited to:
Expenses reimbursed by any other benefit plan
Expenses not considered deductible for federal tax purposes, such as teeth whitening
Expenses claimed as deductions on a federal or state income tax return
Expenses incurred while you were not eligible to participate in the plan
Premiums for any type of health insurance
For a complete listing of excluded expenses, refer to the TaxSaver Web site at
www.taxsaverplan.com.
Tax Considerations
The Health Care FSA is one way the government allows you to save taxes. You may also be eligible to claim the expenses on your federal income tax return as itemized expenses. However, you cannot do both.
You must determine which method is best for your situation. You may want to consult a tax advisor when making your decision. You may also want to consider the following:
Under current tax laws, only the portion of your health care expense that is greater than 7.5% of your adjusted gross taxable income may be deducted on your federal income tax return. In addition, you must file an itemized federal income tax return to claim itemized health care expenses.
The Health Care FSA provides a tax break on the very first dollar of expenses, but only up to the amount you choose to contribute. Expenses and reimbursements do not have to be reported on your federal income tax return.
Of course, the advantages of using before-tax dollars depend on your individual circumstances. While before-tax dollars reduce your taxes, they may slightly lower your Social Security benefits when you retire. Consult a financial advisor before participation.
Dependent Care FSA
The Dependent Care Flexible Spending Account reimburses you for eligible dependent care expenses. Eligible expenses include day care for your children under age 13 or a disabled dependent of any age when the care enables you (and your spouse, if you are married) to work. If you participate in this account, DallasNews Corporation also makes a contribution on your behalf.
Who Is Covered
You may use the Dependent Care Flexible Spending Account to pay for eligible day care or elder care expenses for dependents who depend on you for at least half of their support and whom you can claim on your federal income tax return. These must be eligible dependent care and eligible elder care expenses you incur for the care of your dependents while you are working to enable you (and your spouse, if you are married) to work.
To qualify as a dependent, the person must be:
Under age 13
A person over age 13 (including your child, spouse or parent) if the person meets all of the following criteria:
Lives with you and depends on you for more than half of his or her financial support
Is physically or mentally incapable of self care
Is claimed as a dependent on your federal income tax return
Your Contributions
Federal tax rules regarding your family and tax filing status determine the maximum amount you can contribute per calendar year. The following table illustrates the amounts you are permitted to contribute to your Dependent Care Flexible Spending Account according to your circumstances. Keep in mind that these maximums also include the company’s dollar-for-dollar matching contributions.
Description | Maximum Annual Contribution |
You are single or married and filing a joint income tax return | $5,000 |
You are married and both you and your spouse are making contributions to a dependent care account | Total of $5,000 (your contribution + your spouse’s contributions) |
You are married and you and your spouse file separate income tax returns | $2,500 |
You may not contribute more than your earned income or your spouse’s earned income, whichever is less. If your spouse is a full-time student or is unable to care for himself or herself, you may calculate your contribution amounts as if your spouse had annual earned income of $3,000, if you have one qualified dependent, or $6,000, if you have two or more qualified dependents.
Company Contributions
DallasNews Corporation will contribute up to $20 per week on a dollar-for-dollar match if you participate in the Dependent Care Flexible Spending Account (not to exceed $1,040 annually). Take this into account when deciding how much to contribute during enrollment. To be sure your total contribution is within the $5,000 legal limit, during annual enrollment the most you can elect to contribute from your paychecks is $3,960 each year.
Getting Reimbursed
Here is how the Dependent Care Flexible Spending Account works:
Pay your dependent care expense and submit a claim form with proof of the expense to the claims administrator. Proof of expense is an itemized bill from the provider showing:
The date(s) of service
The name(s) of the dependents who received the service
Cost of service provided
You will be reimbursed up to the amount currently in your account. If your claim is more than your account balance, the unreimbursed amount will pend and will be reimbursed after your next contribution (up to your current account balance).
You may obtain a
claim form from this site (see left navigation), the
claims administrator or by going to the TaxSaver Web site at
www.taxsaverplan.com. Your claim must be postmarked by April 30 of the following year to receive reimbursement. Any money left in your account after April 30 will be forfeited, as discussed in
Use It or Lose It Rule.
Eligible Dependent Care Expenses
To qualify as an eligible dependent care expense, the expense must be necessary for you (and your spouse, if you are married) to work or be a full-time student.
Here are some examples of expenses that are eligible for reimbursement:
Charges for a licensed day care center if it provides care for at least six people and complies with state and local laws
Dependent care in your home or someone else’s home, as long as the care provider is not your spouse or dependent child
Day care services outside your home, as long as the dependent spends at least eight hours a day in your home, or is under age 13
Education expenses if your child is not yet in kindergarten
Day camp expenses for children under age 13
Other expenses that satisfy IRS guidelines are described in IRS Publication 503 and included on the TaxSaver Web site at
www.taxsaverplan.com.
Ineligible Dependent Care Expenses
Here are some examples of expenses that do not qualify for reimbursement through the Dependent Care Flexible Spending Account:
Weekend or evening baby-sitting when you or your spouse are not at work
Overnight camp
Schooling in kindergarten or higher
Transportation services
Expenses for activities or lessons when a separate fee is charged through day care or camp
Tax Considerations
The Dependent Care Flexible Spending Account is one way the government allows you to receive a tax break on your dependent care expenses. You may choose not to participate and pay dependent care expenses with after-tax dollars and take a credit on your federal income tax return instead. You may also use a combination of the two within certain limitations:
The tax credit and the Dependent Care Flexible Spending account cannot be used for the same expenses.
Any expenses reimbursed through the account will reduce your tax credit dollar-for-dollar. For example, if your expenses were $2,300 and you contributed $2,000 to your Dependent Care Flexible Spending Account, you would be able to claim a tax credit for $300 ($2,300 – $2,000 = $300). This example assumes you qualify for a tax credit. Some people may not qualify.
DallasNews Corporation cannot provide tax advice, nor suggest how much to contribute to the Dependent Care Flexible Spending Account. You must decide which tax-saving method, if any, is best for you. Of course, the advantages of using before-tax dollars depend on your individual circumstances. While before-tax dollars reduce your taxes, they may slightly lower your Social Security benefits when you retire. Consult a financial advisor before participating.