Overview Health Care Spending Account Dependent Care Spending Account Claim Reimbursement Enrollment Form
Flexible Spending - Overview
Flexible spending accounts for medical and child care dependent care expenses allow you to put pre-tax money into an account and use it to reimburse you for payment of related bills. This money avoids federal income, Social Security taxes, as well as Kentucky state income taxes. If you would otherwise lose, for example, 25 percent of your salary to those taxes, you could save $250 of every $1,000 you run through the flex plan (exact savings depend on your tax bracket). This benefit is administered directly by ASI.
Example of the Tax Savings in Both Flexible Spending Account Plans:
Jane Smith |
Taxable Income |
Gross Pay |
$28,000/year |
Health Care FSA |
$30/month ($360/year) |
Dependent Care FSA |
$200/month ($2,400/year) |
Total Taxable Income |
$25,240/year |
Jane’s tax savings using health care and dependent care flexible spending accounts:
Without FSAs |
With FSAs |
$28,000 taxable income |
$28,000 taxable income, minus |
No tax shelter for medical expenses |
- $360 medical expenses |
No tax shelter for child care expenses |
- $2400 child care expenses |
$28,000 taxable income |
$25,240 taxable income after flex plan deductions |
Without FSAs, Jane pays $8,022! |
Jane pays $7,231 in taxes. By using FSAs, Jane enjoys a tax savings, savings of $791! |
The difference in taking deductions pre-tax for premiums and participation in the medical care spending account versus paying for expenses after-tax is $791!
*tax assumes rates of 7.65% social security, 6% state and 15% federal
Who to Contact
Call the UK Benefits Office if:
- you are checking on your eligibility to participate in a health or dependent care spending plan
- you want to change your address
- you have a change in status during the plan year and you wish to change the amount you contribute to your medical and dependent care flexible spending account.
Phone: (859) 257-9519, select option 3, or (800)999-2183
Online Account Service: www.asiflex.com
Call your flexible spending account plan administrator (ASI) if:
- you would like a summary plan description for your plan
- you have a question about the status of a claim
- you need help filing a claim
Phone: (800)659-3035
