Flexible Spending Accounts (FSA)
AutoNation offers two flexible spending accounts (FSAs). A Healthcare FSA (HCFSA) is an account you use to pay for out-of-pocket health care expenses for you and your dependents. You can also enroll in a Dependent Care FSA to pay for expenses like day care and other allowable expenses. The Dependent Care FSA (DCFSA) is not for healthcare expenses for your dependents. You can use FSAs even if you do not enroll in any other AutoNation benefit.
Elections in an FSA account do not roll over during Annual Enrollment, so make sure to re-elect this option every year.
FSA Plans have tax advantages
When you contribute pre-tax dollars from each pay check to your FSA, the money is not taxed by federal or most state governments. Using pre-tax dollars helps you save on out-of-pocket expenses for prescription drugs, medical, dental, vision, and dependent care.
Under IRS rules, you must use your FSA balance by the claim submission deadline or lose your remaining account balance. The deadline to file for reimbursement of expenses must be filed by April 30th of each year for the prior year. If you do not file by the deadline, you forfeit any unused money in your account.
Health Care FSA (HCFSA)
Use a HCFSA to pay your, your spouse’s and your dependent children’s out-of-pocket expenses for medical, prescription drugs, dental and vision services not covered by insurance, including deductibles, co-pays and coinsurance. Orthodontia (braces) and dental services, glasses, contact lenses and certain over the-counter medications are also eligible. Choose the total contribution amount when you enroll and it will be divided and deducted equally each pay period.
Note: You may not see the HCFSA plan option during enrollment until completing one full year of regular, full-time employment. See the Summary Plan Description (SPD) for more details.
Dependent Care FSA (DCFSA)
Use this FSA to cover costs for day care, before-school and afterschool care, day camp, nursery or preschool while you or your spouse work. Covered services can be inside or outside your home for a child under age 13. This FSA also covers elder care expenses for dependents, such as a parent, who are mentally or physically unable to care for themselves and live in your home 8 or more hours per day. You cannot use this FSA to pay for your dependents’ health care expenses. Those expenses must be paid from a HCFSA or HSA. Choose the total contribution amount when you enroll and it will be divided and deducted equally each pay period.