If you need fast, accurate answers to some of the most commonly asked Flexible Spending
Account questions, look here first. As always, we'd be happy to hear from you, too. Contact
us if you need additional information.
| Q: |
What is a Flexible Spending Account Plan? |
| A: |
A benefit provided by your Employer that lets you set aside a certain amount of your
paycheck into an account before paying income taxes. Then, during the year, you can be directly
reimbursed from your account(s) for qualified health care and dependent care expenses. |
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| Q: |
Why should I participate in the Unreimbursed Medical Spending Account when I already have health insurance? |
| A: |
This account is used to reimburse you for expenses that are not covered by insurance. For
example, your insurance may not cover annual physicals, copayments, eye exams, eye surgery,
glasses, orthodontics, or prescription drugs. |
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| Q: |
If I set aside part of my pay, won't I make less money? |
| A: |
No. Your net take-home pay will increase by the amount of taxes you did not pay. |
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| Q: |
Can I change my contributions during the year? |
| A: |
For the Unreimbursed Medical Spending Account, you can only make a change if you have a
qualified change in family status such as: marriage, birth, adoption, or a change in your
or your spouse's employment status. For the Dependent Care Spending Account, you may also
make a change if you experience a cost or coverage change in Dependent Care expenses during
the plan year. |
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| Q: |
What if I currently take the Dependent Care credit on my annual tax return? |
| A: |
If your family income is over $43,000, you will most likely benefit from this plan rather than
taking advantage of the current income tax credit. The amount you deposit in your Dependent
Care Account reduces the amount, dollar for dollar, that you can claim as a credit on your
tax return. |
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| Q: |
How do I get reimbursed for my expenses? |
| A: |
Once you have elected to enroll in the program, you will receive a Welcome Kit mailed to
your home address, including instructions on how to file your claims. Our Web site allows
you to submit your claims electronically, or you may download FSA Claim Forms for paper
submission. Reimbursement checks are made payable to you, mailed to your home address. |
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| Q: |
Do I have to wait for the money to be deposited into my account in order to make a claim for reimbursement? |
| A: |
The annual amount you set aside each year for the Unreimbursed Medical Spending Account is
available to you at any time throughout the plan year. The amount available to you from your
Dependent Care Spending Account is the amount you have contributed to date. |
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| Q: |
How do I know how much is available in my accounts? |
| A: |
With each reimbursement check, an attached statement will provide you with a YTD description
of your account(s), including annual election, deposits to date, claims received and paid to
date, denied claims and account balance. You may also check your account online. The Website
provides account balance information and detailed claims and payment information as well. |
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| Q: |
What happens to my Unreimbursed Medical Account if I terminate employment? |
| A: |
You will be able to request reimbursement for any expenses incurred prior to your termination
date for the Unreimbursed Medical Spending Account plan. |
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| Q: |
What if I don't use all of the money I have set aside in my account(s)? |
| A: |
Carefully review your expenses by utilizing our online worksheets for both Unreimbursed
Medical and Dependent Care before making the decision to participate. Any contributions that
are not used during the plan year will be forfeited and cannot be paid to you in cash or used
in a later plan year. Expenses must be incurred in the current plan year, though you will
have 90 days in the following plan year to submit prior year's expenses. |
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| Q: |
What if I am not covered under my company's health insurance plan? |
| A: |
You and your family can still participate in the Unreimbursed Medical and Dependent Care
Spending Accounts. |
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| Q: |
How do I benefit by participating? |
| A: |
Your biggest advantage is the tax savings. Every dollar you set aside in your account reduces
how much you pay later in income taxes. Plus, you can be reimbursed for qualified expenses
that you are already paying for! |
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| Q: |
Are there any negatives that I should know about? |
| A: |
Yes. Because you are not paying Social Security tax on that portion of your income that has
been set aside, your Social Security benefits may be slightly reduced. Most tax advisors
would tell you that the benefit of saving taxes now will be far greater than the potential
loss of Social Security benefits when you retire. |