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The Health Care Flexible Spending Account
The Dependent Care Flexible Spending Account
Joining The Plan
How The Accounts Work
How You Save Money
Requesting Reimbursement
Changing Your Selections

THE HEALTH CARE FLEXIBLE SPENDING ACCOUNT

Vought Aircraft provides you with broad-based health care coverage. The Health Care Flexible Spending Account allows you to save money on the portion of your eligible health care expenses that is not covered by the Vought Aircraft medical plan or any other health care plan.

Eligible expenses may include your share of the cost of medical, dental, vision, and hearing care for you or a dependent. These expenses can be a deductible, coinsurance or a copayment. They can also be a medical, dental, vision or hearing expense that is not covered by a health care plan. However, many health care expenses are not eligible for reimbursement, including your premium payments.

THE DEPENDENT DAY CARE FLEXIBLE SPENDING ACCOUNT

You can save money if you pay for the services of a day care provider while you work. If you are married, your spouse also must work (or actively search for work). The only exception is if he or she is disabled or a full-time student. Eligible expenses include the cost of day care for your dependent children under age 13. Day care also can be for a spouse or dependent relative who is incapable of caring for himself or herself.

JOINING THE PLAN

Within 31 days of your hire date, you may choose to participate in a Flexible Spending Account. In addition, you can join the plan during any Annual Enrollment period, or within 60 days of a qualified change in status.

Contributions

You can contribute as little as $1 each week ($52 each year) to one or both Flexible Spending Accounts. The most you can contribute is the smallest of the following:

$96 each week
($4,992 each year)
Half your annual salary
Your annual taxable income if you earn less than $4,992.

Additional limits may apply to the Dependent Day Care Flexible Spending if you are married.

When you open an account in the middle of the benefit plan year, your maximum contribution is the weekly maximum multiplied by the number of weekly pay periods left in the benefit plan year. For example, suppose you have a qualified change in status effective February 1, and you enroll in the Health Care Flexible Spending Account. Your participation in the account will continue for five months (21 weeks), until June 30. Your maximum contribution to each account is $96 each week for 21 weeks, for a total of $2,016.

HOW THE ACCOUNTS WORK

If you choose to participate, you decide how much money to set aside in each account, and you can make before-tax contributions from your pay The amount you select is deducted automatically from your paycheck each week. The money then is credited to an account in your name.

When you enroll, you should carefully estimate your expenses for the coming plan year. Why? Because IRS rules say you:

Cannot transfer money from one Flexible Spending Account to another
Cannot change the set amounts you choose to contribute during the benefit plan year, unless you have a qualified change in status
Will lose your unused account balances at the end of the benefit plan year
Will lose your unused account balances if you leave Vought Aircraft in midyear for any reason (unless you elect to continue coverage through COBRA). However, you can submit a claim for reimbursement of expenses that you incur before leaving Vought Aircraft
Cannot file for an income tax deduction or tax credit for expenses reimbursed through the Flexible Spending Accounts.

HOW YOU SAVE MONEY

Your spending account contributions reduce your taxable income. That means the amount you contribute is not subject to federal income tax, Social Security tax, or most state and local income taxes. Your reimbursements for eligible expenses literally are tax-free; you will not be taxed at a later date.

Your tax savings will depend on your household income, your tax filing status, and your eligible expenses. You may want to consult your tax advisor on any questions.

REQUESTING REIMBURSEMENT

During the benefit plan year, you can use the money in your accounts to reimburse yourself when you pay an eligible expense. Simply send your claim form and supporting documents to the claims administrator. Each time you file a claim, the claims administrator sends you a new form and mailing envelope. Forms also are available from the Download Forms page or the Vought Benefits Center at 1-866-689-5999.

Submit your claims for reimbursement to:

United Healthcare Insurance Company
Attn: FSA Unit
P.O. Box 981178
El Paso, TX 79998-1178

or fax to 915-781-1085

To ask about the status of any claim, call UHC at 1-888-567-4662 or visit their website at www.myuhc.com (for claim and account info). If you have additional questions, please call the Vought Benefits Center, 1-866-689-5999. The Center operates Monday through Thursday 8am to 8pm and Friday 8am to 4:30pm, Central time.

The Health Care Flexible Spending reimburses you for eligible expenses up to your annual contribution amount, whether or not that amount is already in your account. However, the Dependent Day Care Flexible Spending works differently. Under this account, you can file a claim for reimbursement of eligible expenses only after your contributions are deposited.

Within six weeks of submitting a claim, you should receive your reimbursement check and a statement of your account balance.

CHANGING YOUR SELECTIONS

If your family status changes during the benefit plan year, you can enroll in the Flexible Spending Accounts or change the amounts you contribute. That is the only time you can make a change, except during Annual Enrollment.

You have 60 days after a qualified change in status to enroll or to change your existing selection. The change you make must relate directly to your change in status, and you will have to submit documentation of the event. For example, if you marry and wish to increase your contribution to the plan, you have to submit a copy of your marriage license along with your election form.

At the time of a qualified change in status, you may have a negative balance in your health care Flexible Spending Account. A negative balance occurs when you contribute less money to your account than you receive in reimbursements. In this case, any changes you make to your contributions must allow you to repay the negative balance by the end of the benefit plan year.