Flexible Spending Account
Below is a description of what a Medical FSA is and the proper procedure for maintaining an employee's Medical FSA.
A Medical FSA allows you to set aside funds on a tax-free basis to pay for eligible medical services provided to you, your spouse and your dependents. Some eligible expenses may include:
- Co-payments, co-insurance and deductible expenses
- Dental care (e.g. exams, fillings, crowns)
- Vision care, eyeglasses, contact lenses
- Chiropractic care
- Prescription drugs and certain over-the-counter medical items
What are the limits for a Medical FSA?
The maximum limit that an employee can contribute to a Medical FSA on a tax-free basis is set by the IRS. For the 2020 plan year, elections cannot exceed $2,750.
When are funds available?
On the first day of the coverage period you will have access to your full annual Medical FSA election.
Can I change my election?
Generally, you are not able to change your FSA election once a plan year has started. There are certain life status changes that may permit changes, such as: marriage, divorce, birth of child.
Dependent Care FSA
A Dependent Care FSA allows an employee to set aside funds from payroll to pay for certain dependent care expenses. These expenses must be for a dependent child under the age of 13 or a spouse or other dependent adult who is incapable of self-care.
What are the limits for a Dependent Care FSA? The federal government sets the amount that can be contributed per calendar year to a Dependent Care FSA. The current amount is limited to the smallest of the following amounts:
- $5,000 if single or if married and filing jointly.
- $2,500 if married and filing separately.
- The participant’s earned income.
- The earned income of the participant’s spouse.
What expenses are eligible? In order to qualify, the care must be necessary to enable you and, if married, your spouse to work, look for work or attend school full-time. Some eligible expenses include:
- Child care
- Nursery school
- Before- and after-school care
- In-home dependent care
- Adult care
Using Your Money
- Benefit Resource will issue you a debit card that you can use for eligible medical, dental, and vision expenses (it should be noted that all receipts should be retained from expenses for auditing purposes).
- You can also incur expenses and submit the receipt for reimbursement through the online portal if you pay for services without your Benefit Resource debit card.
Spending Previous Years Money
- When you sign up for a flex spending account it is for money spent during January-December of that calendar year. However, if you have money left over after December, you are eligible to incur expenses through March 15 and submit receipts through March 31 for the remaining money from the previous year. When you are incurring expenses for last year's money, you cannot use your debit card. You will need to use your own money then submit a claim online by uploading the receipt for reimbursement. When uploading this claim you should check the box that says "Yes" for "pay from prior plan year."
- If you have excess money to use in your account, please visit the FSA store to purchase eligible items. Just remember that you will need to pay with your own credit/debit card and submit for reimbursement.
Find FSA Eligible Products and Services by visiting the Benefit Resource site.
Changes to Your Benefit Elections
Generally, employees may only make changes to your benefit elections during Open Enrollment; however, mid-year changes can be made, should you experience an IRS qualifying change in status listed below:
- Marriage; Birth or adoption of a child;
- Divorce/Dissolution of Domestic Partnership;
- Death of your spouse/domestic partner or child;
- Change in employment status that affects benefit eligibility for you or your spouse/domestic partner; or
- Change of eligibility status of a dependent (i.e., your child reaches the age limit of a benefit plan).
Benefit changes must take place within 30 days of the qualifying change in status OR during Open Enrollment.