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Using tax-free dollars is the smarter way to pay medical expenses YourFlex makes it easy.

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Presentation on theme: "Using tax-free dollars is the smarter way to pay medical expenses YourFlex makes it easy."— Presentation transcript:

1 Using tax-free dollars is the smarter way to pay medical expenses YourFlex makes it easy

2 SIR, Inc. Flexible Spending Account What is a Flexible Spending Account? A Flexible Spending Account (FSA) allows you to shift a portion of your income from taxable to tax-free to pay for allowable medical expenses. Completely voluntary. Free to participate—your employer pays us Separate from health/dental insurance.

3 YourFlex tools for tax-savings 1.Medical Reimbursement 2.Dependent Care Reimbursement 3.Private Premium Reimbursement 4.Debit Card

4 Medical Reimbursement Pay for out-of-pocket medical expenses for your whole family. Examples: Doctor co-pays Prescription co-pays and deductibles Dental Work Vision Services

5 Medical Reimbursement 2 Options for Medical Reimbursement: General Purpose Spousal Exclusion

6 Dependent Care Reimbursement Tax-free funds placed in a Dependent Care Reimbursement account can be used for the physical care of a child age 12 and under while both parents are: Working Seeking employment, or Attending school. - Benefit Solutions, Inc.

7 Private Premium Reimbursement A Private Premium Reimbursement Account uses tax-free dollars to reimburse for a health related insurance premium on a policy that is paid for personally (outside the company). Policy has to be in the employee’s name or for a dependent child only The policy must pay only if a specific condition occurs Can not accrue cash value Can not be for Long-Term Care or Life Insurance

8 Quick Fact Sheet The “Plan Year” dates March 1st, 2014 – April 30th, 2015 Minimum & Maximum Medical: $2,500/yr maximum. No minimum. Dependent Care: $5,000/family/yr maximum. No minimum. $2,500/yr maximum if married and filing separately.

9 Important Points ONE Chance a year to sign up Limited Changes - the amount of money you put into your accounts cannot normally be changed during the plan year unless a life event occurs (See the YourFlex guidebook for the IRS exceptions) Use it or Lose it ( 2 ½ month extension adopted).

10 Some of the finer points... For Medical Reimbursements, you can use the amount you have committed to contributing immediately. For Dependent Care & Private Premium you cannot you use the funds until the money is in your account

11 How does it work?: 3 easy steps Step 1: Sign up with an Enrollment Form Estimate your expenses for the next year based on:  When services will be received  Services must be received in the PLAN YEAR or during the extension.  Guess low to limit risk

12 How does it work?: 3 easy steps Step 2: Put money in your account pre-tax automatically through payroll Your employer will take your election amount, Divide it by the number of remaining pay periods for the plan year, and Deduct a little out of each paycheck tax free.

13 How does it work?: 3 easy steps Step 3: Take your money out of your account Submit Reimbursement Request (All Accounts) Or Pay with Debit Card (Med Reimb. Only)

14 Reimbursement Request When you have qualified expenses, send in a Request for Reimbursement with support: fax, mail, or web upload We review the claim for compliance with IRS regulations. We send you your money back from your account within a week! in by Tuesday at 5, out by Friday. You have through June 30, 2015 to submit dates of service that are on or before May 15, 2015.

15 Debit Card Improves cash flow Card for employee and spouse Tied to the available balance in your medical reimbursement account Integrated on our website – Usable at most merchant types Significantly reduces paperwork you must submit If documentation is needed, you have 6 weeks Card good for 3 years

16 Debit Card Emails 6 Week Process Email #1 – Notification – debit made Email #2 – Status email – no support vs. need support Email #3 – Reminder (3 weeks later) – need receipts submitted Email #4 – Final email that card has been frozen

17 For More Details... Read the YourFlex Guidebook Visit Consult Welcome Package that will be coming in the mail Call The Capitol Group: 804.741.4444

18 Using tax-free dollars is the smarter way to pay medical expenses YourFlex makes it easy

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