Flexible Spending
Account

A Flexible Spending Account (FSA) is a tax-free method for you to pay out of pocket eligible medical, dental and vision expenses, as well as eligible childcare expenses. KEG 1 will deduct the amount you elect on a pre-tax basis over the number of pay periods during the plan year.

2024 FSA Funding Limits

Healthcare FSA - $3,050.00

The Healthcare FSA provides you access to your annual election on the first day that you become eligible to participant in the FSA Plan.

You may withdraw more from the account than you have contributed,

but never more than you elect.

Dependent Day Care FSA - $5,000.00

The Dependent Day Care FSA works like a bank account. You may only receive a reimbursement for as much as you have contributed at

any time during the Plan Year.

Return to Employee Benefits

Healthcare FSA Eligible Expenses

Insurance co-pays, co-insurance and deductible expenses
Prescriptions
Orthodontia & non-cosmetic dental procedures
Vision expenses, including Lasik surgery
Eligible over the counter items: Contact Lens Solution, Band Aids, Thermometers, Allergy Medicines, Pain Relievers, Cold Medicines, Antibiotic Ointments & Creams

For a complete listing of eligible expenses please visit www.taxsaverplan.com

Using the Account

Use your FSA debit card at doctor and dentist offices, pharmacies, and vision service providers. Use your FSA debit card at doctor and dentist offices, pharmacies, and vision service providers. It cannot be used at locations that do not offer services under the plan, unless the provider has also complied with IRS regulations. The transaction will be denied if you use the card at an ineligible location.

The debit card works like a regular MasterCard and is linked directly to your FSA available balance for Healthcare and/or Dependent Day Care FSA.

Provides upfront reimbursement for eligible expenses. You never pay out-of-pocket.
Sometimes, a receipt notification will be sent to your email address; follow the instructions in the email to ensure that your card will remain in good standing with the Plan.
The FSA Debit Card can be used for Healthcare FSA expenses as well as Dependent Day Care FSA expenses.
You will receive your cards in the mail within 2 weeks of your enrollment into the program. You will receive 2 cards in the mail with different card numbers. You may call the TaxSaver CSR Department to request additional cards for family members, as needed.

While FSA debit cards allow you to pay for services at point of sale, they do not remove the IRS regulations for substantiation. Always keep receipts and Explanation of Benefits (EOBs) for any debit card charges in case you need to prove an expense was eligible. Without proof an expense was valid, your card could be turned off and the expense deemed taxable.

Dependent Day Care FSA

In addition to the Healthcare FSA, you may opt to participate in the Dependent Day Care FSA. Set aside pre-tax funds into a Dependent Day Care FSA for expenses associated with caring for a child.

With the Dependent Care FSA, you can set aside up to $5,000 to pay for childcare expenses on a pre-tax basis.
Eligible dependents include children under 12 and a spouse or other individual who is physically or mentally incapable of self-care and has the same principal place of residence as the employee for more than half the year.
Expenses are reimbursable if the provider is not your dependent.

This account covers dependent day care expenses that are necessary for you and your spouse to work or attend school full time. Eligible expenses include:

In-home babysitting services (not provided by a dependent)
Care of a preschool child by a licensed nursery or day care provider
Before- and after-school care
Day camp
In-house dependent day care

General Rules

Expenses must occur during the 2023 – 2024 plan year.
You are not permitted to claim the same expenses on both your federal income taxes and Dependent Day Care FSA.
You must “use it or lose it”—any unused funds will be forfeited.
Up to $610.00 may be rolled over each year for Healthcare FSA, as long as you are an active participant in the current plan year.
KEG1 LLC also offers a grace period for the Dependent Day Care FSA, which allows you to incur expenses in the first 75 days of the new plan year that will apply to the prior year, if there are funds available in the prior year. You cannot change your FSA election in the middle of the plan year without a qualifying life event.