Medical Reimbursement Flexible Spending Accounts Give Yourself a Raise!
Do you have medical, dental and vision expenses you pay out of pocket? Health Insurance Deductibles Health Insurance Co-insurance Prescription Drugs Dental work, for example fillings or crowns Orthodontia (braces) Contacts, Glasses, Frames Other items of medical purpose, excluding over the counter medications
If you have eligible expenses 1.Come up with an amount that you and your family will spend on eligible expenses for the plan year (for example, $1000) 2.Complete an application for medical reimbursement and make your annual election (in this case, $1000). 3.The $1000 election is divided by your number of payrolls, and an even amount comes from each paycheck. 4.Prior to the start of the plan year, you will receive a Debit Card from Nyhart. 5.During the plan year, use the Debit Card for eligible expenses until your annual election ($1000) is expired. 6.After spending the election ($1000), begin paying out of pocket as you traditionally would
Notable Facts Keep your receipts! You may occasionally be asked to provide a copy Use it or lose it – so be sure to incur all your Medical Reimbursement Flexible Spending Account money during the plan year, because you lose any money that you do not spend. 90 day grace – if you incur bills during the plan year you may claim the expenses up to 90 days after the end of the plan year You must be eligible for the district’s medical plan to participate, but you may participate in medical reimbursement even if you do not take the district’s medical insurance plan The plan year begins September 1 each year and lasts through August 31 the following year. A short plan year is established of March 1 – August 31, 2013 for this enrollment period Have a HDHP with a HSA? - If you participate in a flexible spending account, no member of your family can contribute to a health savings account
How does Medical Reimbursement save me money? Each pay period when the payroll deduction is taken from your paycheck, the deduction reduces your taxable income Federal, State, Local, and other Payroll taxes are eliminated due to your reduction in taxable income As a result, you spend money on eligible items you would have purchased anyways through your medical reimbursement account, however, you have reduced the amount of taxes you pay
Can you show me an example? Each pay period when the payroll deduction is taken from your paycheck, the deduction reduces your taxable income
Medical Reimbursement is right for me if: You are eligible for the Zionsville Community Schools medical insurance You do not participate in a health savings account through your spouse’s employer You have out-of-pocket eligible medical, dental or vision expenses for which you have not already earmarked funds via a spouse’s employer Paying less taxes interests you