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0 Flexible SpendingAccounts (FSAs)Smart, simple ways to save
1 This presentation covers: Flexible Spending Accounts (FSAs) overviewHealth Care FSADependent Care FSAHow to use your fundsThe PayFlex Card®, your account debit cardHelpful tools and resourcesThe PayFlex Mobile™ Application
2 What is a Flexible Spending Account? An FSA lets you set aside money from your paycheck to use for eligible out-of-pocket expenses.You contribute to an FSA with pretax money from your paycheck.Your FSA is administered by PayFlex®.We will be discussing two types of FSAs:Health Care accountDependent Care account
3 What is the benefit of an FSA? Here’s an example of how having an FSA can help reduce your taxes and increase your take home pay!Annual SalaryHealth Care FSA Annual ContributionDependent Care FSA Annual ContributionSavings$30,000$1,500$0$340$50,000$1,750$4,000$1,303$70,000$2,000$4,500$1,472*This example is based on 7.65% FICA and 15% tax bracket Note: Be advised that this example is for illustrative purposes only. These projections are only estimates of tax information and should not be assumed to be tax advice. Be sure to consult a tax advisor to determine the appropriate tax advice for your situation. Actual tax savings depends on several variables, including state and local tax rates and the tax bracket of the individual.
4 Health Care FSAA Health Care FSA makes it easy to save funds to use for eligible health care expenses that are not covered by insurance.The Internal Revenue Service (IRS) annual health care FSA pretax contribution limit is $2,500.If you and your spouse each have a health care FSA, you can each contribute $2,500.Your minimum contribution limit is $20.00/month ($240 annually)Your entire contribution is available at the beginning of the plan year.Your health care FSA funds can be used by you and:Your spouseYour child (to age 26)Your tax dependent who is permanently and totally disabledYou (and/or your spouse) don’t need to be covered by your employers health plan to participate in a Health Care FSA.
5 Health Care FSA Expenses Some common eligible expenses include:Medical & dental deductibles, co-pays and co-insurancePrescriptionsOver-the-counter items (OTC)Note: OTC drugs and medicines require a prescriptionHospital expensesLASIK surgery and eye glassesContact lenses and saline solutionHearing aids and batteriesOrthopedic devicesView a complete list of common eligible expenses on HealthHub.com, your PayFlex member website.This material is for informational purposes only. Eligible expenses and benefits may vary from employer to employer. In case of a conflict between your plan documents and the information in this material, the plan documents will govern. Please refer to your employer’s Summary Plan Description (“SPD”) for more information about your covered benefits
6 As a recap, let’s watch a video! View: https://www.youtube.com/watch?v=psGZJZdb1YU
7 Dependent Care FSAA Dependent Care FSA is a great way to save funds to use for eligible child and adult care expensesThe IRS annual dependent care FSA limit is $5,000 per household/family.If you and your spouse each have a dependent care FSA, you are limited to up to $5,000 between the two of you.Your minimum contribution limit is $40.00/month ($480 annually).To use your funds, you must be working.If you are married, your spouse must either be working, looking for work, be a full-time student or incapable of self-care.Account funds are used for your:eligible dependent under age 13.or for a spouse or dependent unable to take care of him/herself.Funds become available as they are deducted from your paycheck, and deposited into your account.You (and/or your spouse) don’t need to be covered by your employers health plan to participate in a Dependent Care FSA.
8 Dependent Care FSA Some common eligible expenses include: Licensed day care providerIn-home provider (this can’t be your child under age 19, or someone you claim as a tax dependent)Summer camps (not overnight)Tuition through preschoolBefore and after school care (under age 13)View a complete list of common eligible expenses on HeathHub.com, your PayFlex member website.This material is for informational purposes only. Eligible expenses and benefits may vary from employer to employer. In case of a conflict between your plan documents and the information in this material, the plan documents will govern. Please refer to your employer’s Summary Plan Description (“SPD”) for more information about your covered benefits
9 To help sum it all up!View: https://www.youtube.com/watch?v=3h7jYw-pvIw
11 Planning your FSA contribution You can ONLY change your contribution amount if you have a change in status. Such as marital status, tax dependents, employment, etc.Use-it-or-lose-it rule -- Any funds left in your FSA at the end of the plan will be forfeited.The grace period allows you to incur expenses up to November 15.The run out period gives you more time submit claims to pay yourself back from your account. Your last day to submit claims is December 31.Specific to the Dependent Care FSA:Pay yourself back for services already received.You can ONLY change your contribution if:There is a change in your providerThere is a change in the cost for a provider(this provider can’t be a relative)Note: To help plan your contribution… Think about the eligible expenses you had last year and/or this year. Then, what you expect this year.
12 Using your FSA dollars1Use the PayFlex Card®, your account debit cardYou may use the card to pay for eligible health care FSA expenses.Optional for Healthcare FSA$9.00 Annual Fee (deducted from your election amount)If you currently have a PayFlex Card and would like to continue using the card during the upcoming plan year, you must elect the card during annual enrollmentThe card can be elected at anytime during the plan yearPay yourself back from your accountPay for an eligible expenses with cash, check or a personal credit card, you can pay yourself back.Submit a claim online.Use the PayFlex Mobile™ app.Fill out a paper claim form and fax or mail it to PayFlex.2Quick tips:Download/print a claim form your account website.An Explanation of Benefits (EOB) or a detailed receipt must be sent with your claim.Enroll in direct deposit, for quick reimbursements!Manage your account/s and transactions online.Order cards for you spouse or dependent at no cost.
14 It’s easy to get started! Estimate the amount you’ll spend on out-of-pocket health care and/or dependent care expenses during the plan year.Review expenses from prior plan year.Use the planning tools available at HealthHub.com.Decide how much you wish to set aside in your health care and/or dependent care FSA.Divide your annual contribution by the number of pay periods in your plan year.
15 PayFlex MobileManage your account 24/7 with the free PayFlex Mobile™ ApplicationAvailable for iPhone® and iPad® mobile digital devices, as well as Android™ and BlackBerry® smartphones.The PayFlex Mobile app lets you:Manage your account fundsView your account balanceSubmit a claim and view claims processedView PayFlex Card® purchases and submit documentationView a list of common eligible expenses itemsUse same username and password as the PayFlex member portalThe iPhone and iPad are trademarks of Apple Inc., registered in the U.S. and other countries. BlackBerry and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. Used under license from Research In Motion Limited. Android is a trademark of Google Inc. Standard text messaging and other rates from your wireless carrier still apply.
16 We’re here to help! Visit HealthHub.com or call us atRepresentatives are available Monday – Friday, 7 a.m. – 7 p.m. CT and Saturday, 9 a.m. – 2 p.m. CT.This material is for informational purposes only. The information describes the Flexible Spending Account (“FSA”) in general terms. FSA plans are governed by the rules of Section 125 of the Internal Revenue Code and will be administered in accordance with those rules. Estimate fund amounts carefully. Unused funds may be forfeited. Eligible expenses may vary from employer to employer. In case of a conflict between your plan documents and the information in this material, the plan documents will govern. Please refer to your employer’s Summary Plan Description (“SPD”) for more information about your covered benefits.The iPhone and iPad are trademarks of Apple Inc., registered in the U.S. and other countries. BlackBerry and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. Used under license from Research In Motion Limited. Android is a trademark of Google Inc.This material is for informational purposes only. MasterCard® is a registered trademark of MasterCard International Incorporated. Information is believed to be accurate as of the production date; however, it is subject to change. For more information about PayFlex, go to PayFlex.com.