Flexible Spending Accounts (FSA)
This plan helps pay out-of-pocket costs for medical and dependent care costs while increasing your expendable income by utilizing pre-tax dollars.
This plan is administered by Trion. Each employee who elects an optional Flexible Spending Account will select an amount to be contributed through payroll deduction. You may elect payments by check or direct deposit. An FSA Benefits debit card is also available.
The maximum employee contribution for Health Care is $3,400 per year. The maximum employee contribution for Dependent Care is $7,500 per year.
- Pay deductibles, coinsurance or copays (including prescriptions) as part of your health plan
- Buy prescription eyeglasses, contact lenses or saline solution.
- Expect dental and orthodontia expenses in the coming year
- Pay a housekeeper or day care center to take care of your children or elderly parents.
These tax savings are then reflected as a decrease in your income. However, it is important to estimate your expenses as accurately as possible because you will forfeit any funds left over at the end of the year.
Important Rules to Keep in Mind
FSAs offer a sizable tax advantage. The trade-off is that these accounts are subject to strict IRS regula-tions, including the following:
- The IRS allows you to rollover up to $680 of unused funds. You will lose any remaining funds over $680.
- Once you enroll in the FSAs, you cannot change your contribution amount during the year, unless you experience a qualified status change.
- You cannot participate in both the Medical FSA and the HDHP/HSA plan. If you are currently participating in the Medical FSA and move to the HDHP/HSA plan in 2026, you must exhaust all the funds from
Health Savings Account (HSA)
A HSA is a pre-tax medical savings account available to taxpayers who are enrolled in a high-deductible plan. The HSA can be used to pay for eligible health care expenses not covered by the insurance plan.
You decide how much to contribute (up to the IRS annual limit), and which expenses you will pay out of your account. Withdrawals from the HSA are not taxed as long as they are used for qualified expenses.
The account is individually owned which means you take it with you when you change jobs or retire. You must be enrolled in an HDHP in order to enroll in a HSA.
Contributions
The 2026 IRS maximum annual contribution for your HSA is $4,400 for individuals and $8,750 for family.
HSA Advantages
- Contributions are tax deductible.
- If the account has a credit balance at the end of the year, that balance is “rolled over” to the following year.
- The account provides an opportunity to build a significant balance after years of tax-free contributions, interest, and investments.
- If you terminate the HDHP plan with ARC, you have the option to leave the funds in the HSA or roll them over to another financial institution that is a qualified HSA custodian/trustee.
Qualified Medical Expenses
A qualified medical expense is a medical care expense that is primarily for the prevention or alleviation of a physical or mental defect or illness.
In general, this includes the same services covered by your health plan. In addition, the HSA will cover money that goes toward the following:
- Deductibles & coinsurance
- Eyeglasses & contact lenses
- Dental Services
- Prescription Drugs
- Certain non-prescription drugs
- Certain services not covered by your health plan
Commuter Benefits
The Commuter FSA allows employees to pay for their commuting expenses through payroll deductions on both a pre-tax and post-tax basis. Employees can contribute up to $340 (including ARC’s $40 contribution) a month to use for eligible commuting expenses, such as:
- Public and mass transportation facility fares to and from work
- Parking fees at public and mass transportation facilities
- Parking fees for a location on or near your employer’s business to which your vehicle is left during your working hours
ARC’s commuter/parking subsidy program offers a monthly benefit for eligible employees that commute to the office in accordance with the Agency’s telework policy of three (3) days a week, using a qualified means of transportation per IRS guidelines. This benefit allows employees to use pre-tax dollars to pay for eligible parking and commuter expenses.
ARC will contribute a subsidy amount of $40 per month to an employee’s parking or commuter FSA. In addition, employees can contribute up to an additional maximum amount of $300 per month, not to exceed the maximum amount of $340 per month in accordance with IRS guidelines. All eligible employees must enroll annually during open enrollment via PlanSource benefits enrollment. Employer benefit of $40 per month subsidy does not require additional contributions to a FSA.
For more information and eligibility rules, please visit the HR Benefits page on the intranet.
Long-Term Disability (LTD)
Long-term disability is provided to regular full-time employees through Lincoln Financial at no cost. This benefit provides additional income security to employees who are unable to work for an extended period of time because of an illness or disability. On the 91st day of disability, you are eligible to receive up to 66 2/3% of your earnings to a $7,500 monthly maximum.
Basic Life Insurance AD&D
ARC provides all full-time regular employees with Basic Life Insurance and Accidental Death & Dismemberment (AD&D) after completion of your benefit enrollment online through Lincoln Financial. Your basic life benefit is 3 times your base annual earnings to a maximum of $450,000. In the event of your death, your life insurance benefit will be paid to your beneficiary.
For more information, please see the ARC Intranet under “Employee Services”, “Human Resources” and “Benefits”.
