How an FSA Works You are responsible for projecting the eligible - PowerPoint PPT Presentation

There are two types of FSA Accounts: Health Care Spending Account (HCSA) & Dependent Care Assistance Program (DCAP) You may elect to participate in one or both types of accounts How an FSA Works You are responsible for projecting the eligible expenses that you will incur during the plan year to determine your election amount You agree to have that amount taken from your paycheck in equal installments on a pre-tax basis during the plan year You use the funds to reimburse eligible expenses You must re-enroll every year and make a new election. You are not able to change your election amount within the plan year unless you experience a qualifying life event Per IRS regulations you forfeit any remaining balances at the end of the plan year • Use our online tools to make a careful decision on your annual election amount • You have additional time at the end of the plan year to spend your balance

Example of Tax Savings Through an FSA Approximately $25 is saved for every $100 contributed pre-tax to an FSA account Assumptions for this example: • Employee earns $30,000 per year • Has $2,000 annual expense for out-of-pocket medical care (RX, copays, glasses, etc.) • Has $4,000 annual expense for dependent care assistance (childcare expenses for children under 12) Without FSA SA With FSA SA Enrollm lment An Annual l Earn arnings $3 $30,000 $30,000 $3 Health Care Reimbursement Account Contribution $0.00 -$2,000 Dependent Care Assistance Account Contribution $0.00 -$4,000 Total al Pr Pre-Tax x Dedu Deduction $0 $0.00 $6,000 $6 Taxa axable le Sala alary $3 $30,000 $24,000 $2 Total Taxes Paid (25%) -$7,500 -$6,000 Net Sala alary $22,500 $2 $1 $18,000 Exp xpenses (Po Post Tax) ax) -$6,000 $0.00 Spendable le Inc ncome $1 $16,50 500 $1 $18,000 Net Sav avings $0.00 $0 $1 $1,500

Benefits of an HCSA You increase your spending power by receiving a portion of your income pre-tax You can also easily budget for higher cost health care expenses You can spend your entire election at any point during the plan year, your full HCSA election is preloaded It’s like an interest-free loan! You can reimburse all eligible family members’ eligible expenses, even if they’re not covered on your medical plan You can draw funds directly from your HCSA via the debit it card we send you The debit card linked to your flexible spending account works just like a normal credit card

Guidelines on Who can use the Plan for Eligible Expenses If you are considered a GIC Benefit-Eligible Employee, you are eligible for the FSA benefit You do not need to enroll in a GIC medical plan to enroll in the medical FSA Your legally married spouse (they do not need to be enrolled in your medical plan) Please refer to your GIC Handbook for Your tax dependent(s) (they do not need to be enrolled in your medical plan) additional information on Eligibility Plea Please Not ote : A domestic partner’s or ex - spouse’s expenses are not eligible for reimbursement per federal regulations

HCSA Eligible Expenses Medical Plan Vision Over-the-Counter* Dental Cost Sharing • Prescription Glasses • Medical Equipment • Fillings • Office Copays • Prescription Sunglasses • Bandages & Splints • Root Canals • Hospital Copays • Contact Lenses & Solution • Crutches • Implants • Prescription Copays • Vision-correction Surgery • Much More! • Crowns • Deductibles *See Eligible Expense List • Orthodontia Please Not ote: The HCSA Contribution Limits for the GIC 2021 Plan Year are $250 Minimum/ $2,750 Maximum See our Eligible Expense list on benstrat.com/gic-fsa for more examples * Use the mobile app to easily scan items for eligibility

Benefits of a DCAP Funds in a DCAP may be used towards expenses for the care of your child(ren) while you (and your spouse, if married) are at work or attending school full time You can pay your childcare related expenses with pre-tax dollars Eligible Dependents are children up to age 13 or tax dependents of any age who are mentally or physically incapable of self-care and reside with you DCAP funds are not pre- loaded, you can’t access any more than you’ve had withheld from your paycheck at any point in the year You are only able to use funds after they have been taken out of your paycheck You cannot submit for expenses with dates of service in the future, they will not be paid Please Please Not Note: e: You are re not ot able to use your debit card for DCAP. But you can file a claim through the mobile app by taking a picture of your receipt!

DCAP Eligible Expenses Babysitters Before & After Daycare Centers Vacation Day Camps School Programs (Non-Family members; In & out of your home) Please Not ote: The DCAP Contribution Limit for the GIC 2021 Plan Year is $5,000 Maximum; $2,500 if single or married filing separately (Max per Pay Period: $96.15 Weekly; $192.30 Biweekly) Tuition, Tui , ki kindergarten, and and ove overnight cam amp ex expe penses ar are not ot el eligible le See our Eligible Expense list on benstrat.com/gic-fsa for more examples

Plan Year Details Plan Year July 1, 2020 through June 30, 2021 Cl Claim aims Fili ling Dea Deadli line Forfeiture Dat Date 2 2 ½ Month Gr Grace Peri Period Open Enro nroll llment Pe Period Your deadline for filing claims You forfeit any remaining Your deadline to incur Open enrollment dates are: for all reimbursements is: balance as of: eligible expenses during a Monday, Monday, April April 6, 6, 2020 2020 – grace period ends: October 15 October 16 Monday June 1, 1, 2020 2020 September 15 Use the Mobile app for easy Keep spend dates and plan Enrollment Deadline: Debit Card transactions claim filing year in mind when making after this date will only apply May ay 1st your annual election to the new plan year El Electio tion Calc lculatio ion Ass ssis istance: Review your Explanation of Benefits (EOBs), RX Copays, Daycare bills, Tax Savings Expense Cost of summer day camp, what you spent in your prior year elections to select the right amount for Calculator Worksheet your annual election. Visit our Expense Worksheet and Tax Savings Calculator for additional guidance!

Enrollment is all Online – Portal Enrollment Opens 4/6/20 Member Portal Login Page: benstrat.com/gic-fsa 3 1 Already Enrolled; never Re-Enrolling Portal User used the Portal If you already have an Visit the online portal and 1 account, login using your click New User to create your online portal credentials. 3 online portal credentials 2 2 4 Forgot Pas Password? Newly Enrolling 4 e-Form for New Election (newly enrolling in plan) Visit the online portal and Use Electronic Form click the corresponding link Please Note: No o pap paper op optio tion is s av availa lable le

Mobile Account Access The Benefit Strategies mobile application is available on iOS & Android. Download the app for your chosen device from the Apple App Store or Google Play ✓ Quickly check your account balance and important filing dates ✓ Submit claims for medical and dependent care FSA ✓ Capture the receipt the moment the transaction happens ✓ Report a debit card as lost or stolen ✓ Scan product bar codes to determine eligibility as qualified medical expense 11

Receipts The IRS requires that we verify all debit card transactions used for eligible expenses which means you’ll need to save your receipt even if you swipe your card for the charge. Make sure your receipt contains the 4 D’s of Acceptable Documentation: 1. 1. Dat Date the expense was incurred 2. 2. Do Doctor or name of provider 3. 3. Do Doll llar amount of the expense 4. 4. Des Description of the expense(s) It’s easy to submit documentation for a claim right through our Mobile App, Online Portal, or Secure Email 1. 1. Swip wipe your ca card or purchase eligible expenses 2. 2. Tak ake a a picture of your receipt with your phone 3. 3. Ge Get an an ema email l notification requesting a receipt 4. 4. Up Uplo load the the picture you took to your Mobile App or Online Portal Please Not ote: Cancelled checks, Credit card statements, and “balance forward” statements are not acceptable documentation

Debit Cards The Benefit Strategies debit card provides easy access to HCSA and Commuter Choice* funds. ✓ Debit cards are issued in sets of 2 ✓ Cards are good for 3 years ✓ A Free set of cards is issued to all enrolled HCSA participants ✓ You can get an additional set of cards for $5.00. Fee also applies for lost/stolen card replacement ✓ Replacement and/or additional cards can be ordered via consumer portal or mobile app ✓ Cards are issued in the employee’s name but a dependent can sign the back of the card and use for eligible FSA expenses HCSA SA Re-enroll llment DCAP Only DCA ly Enroll llee Commuter Cho Co Choice Only nly HCSA SA New Enroll llee Keep your card! You’ll be No card. Download mobile for If you have a card but you’re You’ll be getting a set of cards getting a new set of cards quick claim reimbursement! skipping HCSA and only mid-June when your current card electing CC this year: Keep expires. your card to use for commuter choice benefits Please Not ote: DCAP funds cannot be accessed with the debit card – you must file a claim for DCAP reimbursement *Commuter Choice is a separate benefit. To learn more please visit benstrat.com/clients/commonwealth for Commuter Choice program details