ALL Plans beginning January 1st 2020, the maximum contribution amount for an FSA is $2,750.00.

Effective 1/1/2020, ALL over the counter (OTC) medications ARE eligible for reimbursement without a doctor’s prescription.

Section 125 of the internal Revenue Code allows employees to pay specific health-related expenses as well as dependent care expenses with pretax dollars. This results in a reduction in your Federal. State, Social Security, and Medicare taxes.

You determine how much you, your spouse and your eligible dependents will spend annually on these expenses. That amount is deducted from your GROSS earnings through payroll deduction. The result is an increase in net take home pay because your payroll deductions become NON-TAXABLE INCOME.

First you should determine what your typical medical, dental, vision and qualifying dependent care out-of-pocket expenses may be for the upcoming year, for yourself, your spouse and your eligible dependents. You can do this with the aid of a Flex Confidential Survey Form, which is available from enrollment specialists, or your HR Department. The expenses might include any eligible out-of-pocket healthcare expenses you anticipate (such as routine medical examinations, co-pays, contact lenses prescription eye glasses, dental expenses) and dependent child care (daycare) or elder care expenses, the deductible of a Medical Plan or Dental Plan and your share of expenses under Major Medical. A list of qualifying expenses is included under the Forms section. The second point to consider is how much you can afford to redirect from your take-home pay. You should be sure you can meet all of your fixed living expenses without the amount of your salary redirection, until you are able to collect reimbursement from your Flex Account.

NO! Once you have received reimbursement from the Program for any qualified expenses, you may not claim the same amounts as a deduction or credit on your income tax return. However, you may be able to deduct expenses that exceed the amount of reimbursement under the Flexible Benefits Program. Consult your tax advisor for your specific situation.

The maximum dollar amount that each employee may contribute to the Flexible Benefits Program is determined by your employer and is indicated in your Summary Plan Description. Your Flexible Benefits Enrollment Form will indicate the per pay period dollars which will be contributed to each of the accounts (Medical, Dependent Care, Adoption Assistance, etc.). The total amount cannot be more than the annual maximum specified by the Plan, for each account.

Generally NO! During the Plan year you may not change what was on your original enrollment form. You can, however, make changes when you fill out a new enrollment form each year. You can also file a new enrollment form in the event of a change in family status. See your Summary Plan Description for an explanation of the specific events which would allow for a change in family status.

NO! Money will be credited to your account(s) on each payday in equal installments (If you should go out on an unpaid leave of absence or Family Medical Leave, please contact your Human Resource Department for your Company’s specific guidelines). You should also know that once you decide on a salary reduction amount you cannot change or cancel it until the next Plan year, unless there has been a change in family status.

NO! Contributions cannot be stopped during the calendar year. By allowing contributions to be stopped, we jeopardize the tax advantage of the Program. You may not take money out of the Program during the calendar year unless it is for reimbursement of an eligible expense.

Anyone you claim as a legal dependent on your federal income tax return is an eligible dependent for medical and dependent care expense purposes. For purposes of your medical flexible spending account, any dependent that chooses to be covered to age 26 on your plan may be covered AS LONG AS he/she does not have coverage through another employer. This is regardless of his/her marital status or living arrangements. Divorced and separated parents please refer to the IRS Code Section 152(e) - Dependent Child of Divorced or Separated Parents or Parents Who Live Apart - For more information.

Reimbursable dependent care expenses are generally defined as those that are eligible for a tax credit on your federal tax return. If you are married your spouse must be employed (unless disabled or attending school full-time), and the dependent care expense must be for the specific purpose of allowing both you and your spouse to work (attend full-time classes or care for him/herself in the case of disability). The amount of reimbursable expenses cannot exceed the lesser of either your earnings or those of your spouse. The overall maximum dependent care deduction is $5,000 per year. If you are married and file a separate income tax return, the annual maximum is $2,500. In the event of a disabled spouse or full-time student, the dependent care deduction is limited to $200 per month for one (1) child or dependent and $400 per month for more than one (1) child or dependent. Dependent care expenses can be for the care of any legal dependent under the age of 13 or any other dependent who is physically or mentally incapable of self-care. Eligible charges include those for baby-sitters, companions and day-care centers that meet local regulations. Additionally, housekeepers and summer day camps may be eligible for reimbursement under the dependent care provisions. Dependent care expenses paid to your legal dependent are not eligible for reimbursement. Also, payments made to your child under age 19, even if no longer a dependent, are not eligible for reimbursement.

Effective January 1, 1989, your federal child care tax credit will be reduced dollar for dollar by the amount of salary redirected to the dependent care spending account. You cannot take a double deduction.

YES, only if your taxable wages are less than the Social Security wage base (or are reduced below the base) for several years. The Social Security wage base is, generally speaking, the amount of wages up to which Social Security taxes are withheld. Social Security benefits are based on an average of your wages and the number of years you work. The maximum benefit available will result only If your taxable wages have met or exceeded the wage base for most of the years you worked. Therefore, if your salary is reduced below the wage base, or your salary has been below it for most of your working career, your Social Security Supplement feature is available for you to insure against that potential loss. Please discuss this with your enrollment personnel, or the FLEXBENE claim center.

You can submit as many claims as you wish, as long as the dates of services do not exceed the current date and are within the current Plan Year. Once you exceed your annual election you will receive a denial letter informing you which account is exhausted and are not required to submit any more claims for the plan year.

You can. However, each time you file a claim and receive a reimbursement payment, the reimbursement check stub/direct deposit notification will detail the current deposits, reimbursements, and balance(s) of your account(s). You will also receive a cumulative account balance semi-annually, whether or not you have submitted claims, so that you will be aware of your accumulated account balance. In addition, during the last quarter, you will receive an additional statement to remind you of the existing balance(s) in your account(s). It is important that you "use your balance, or lose it!"

Only Health FSA account balances of $550 or less can be rolled over if your company allows for the roll over provision.

The "Use it or Lose it" Principle:
Flex is established in accordance with Federal IRS regulations that determine how the Plan funds may be used. If you allocate money towards a certain benefit account during the Plan year and fail to use those funds for benefits eligible under that benefit account, you will lose the excess. Excess funds do not revert to FLEXBENE. They go back to the Plan to offset administration costs and/or offset benefit costs in the future. What you don't spend from your allocation, however, will be lost to you personally. Therefore you should be careful and conservative in your estimates!

As soon as your Plan Year begins you may file claims for eligible expenses. The expense must be incurred during the Plan Year dates. The Plan goes by the date of service NOT the date of payment.

The answer is “yes”, but only if you experience what is called a change in family status during the year. If you add a person to your family (birth, adoption, or marriage), if your family should decrease in size (death, legal separation or divorce), or if your spouse terminates employment, you may change the amounts by which your salary will be redirected. For specific information about this provision please call the M.A. Services claims center. You may be asked for proof of the change.

• Remember, unless you have a “change in family status,” you will not be able to reduce or increase the amount designated on your enrollment form, nor will you be able to shift amounts from one account to another. This is why we encourage you to plan carefully before you enroll.
• For information regarding The Family Medical Leave Act or COBRA, please see your Summary Plan Description or contact your Human Resources representative.

As a general rule, a desired election change will need to be found consistent with a Change in Status event if the even affects coverage eligibility. Qualifying Events for a Medical FSA change are as follows:

• To Increase Medical FSA election: Marriage, Birth/Adoption of a child, child who gains dependent statu
• To Decrease Medical FSA election: Divorce, Child no longer qualifies as a dependent, death of a dependent
• To Increase/Decrease Medical FSA election: If you spouse or dependent starts/ends a job, increases/decreases work hours, gains/loses eligibility from their employer sponsored health insurance for health flexible spending coverage