Pre-Tax Savings Accounts

Flexible Spending Account (FSA)

 

Participating in the Flexible Spending Account (FSA) available through Ameriflex can increase your take-home pay by reducing your taxable income. It allows you to potentially save up to 30% on your eligible healthcare and/or dependent care expenses every year by using pre-tax dollars instead of post-tax dollars to pay for those expenses.

We recommend prior to making an election, you consider and derive a conservative estimate of how much you spend on healthcare and/or dependent care expenses for you and your qualified dependents in one year. For example, you may want to consider your estimated cost for prescription drugs, medical and dental office visit copays and/or deductibles, as well as vision related needs including exams and prescription glasses/lenses.

Calendar Year Maximum Contributions:

  • Health Care FSA: $2,700
  • Dependent Care FSA: $5,000
  • Limited Purpose FSA: $2,700 (eligible for those employees also enrolled in the Anthem HSA plan and Health Savings Account; these funds can only be used on Dental and Vision expenses)

Your FSA includes a $500 rollover provision, meaning you can rollover up to $500 of unused FSA funds to the following year. Please review the plan documents for more details on the maximum contributions you can make toward the healthcare and/or dependent care Flexible Spending Account.

Health Savings Account (HSA)

 

A Health Savings Account is similar to the Flexible Spending Account, except that eligibility for this account is tied to enrollment in the City of South Fulton HSA plan, and any funds that you contribute will roll over year to year rather than be forfeited. The IRS determines what health care expenses are considered “qualified health care expenses,” but there is a long list of items like deductible, copays, coinsurance, prescriptions, dental, and vision expenses that qualify, meaning you can ultimately save money on these out-of-pocket costs.

City of South Fulton HSA Contributions:

If you chose to enroll in the Anthem HSA plan, you will also be enrolled in a Health Savings Account, and the City will deposit $187.50 (Individual coverage) or $375.00 (Family coverage) into your HSA each quarter. Should you wish to contribute as well, you can contribute a designated amount per pay period, so long as the total amount of funds does not exceed the calendar year maximum contributions set by the IRS.

2020 Calendar Year Maximum Contributions:

  • Individual: $3,550
  • Family: $7,100