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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 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. All employees that are working 30 hours per week can participate. Free to participate—your employer pays us Separate from health/dental insurance. Benefits you, your spouse and your dependents.

3 How can this benefit me? More $ in your pocket The example located on the back of the YourFlex Guidebook shows how someone making $1,600 a month could see their take-home increase by $135 a month... that is $1,620 a year back in your pocket!

4 YourFlex tools for tax-savings Medical Reimbursement Dependent Care Reimbursement Private Premium Reimbursement

5 Medical Reimbursement The most common account in an FSA; this account allows you to provide tax-free funds that can be used for medical expenses for you, your spouse, and/or your dependents.

6 Medical Reimbursement 2 Options for Medical Reimbursement: General Purpose Sign up for this account if you would like to be reimbursed for you, your spouse and your children. You or your spouse cannot contribute to an HSA and participate in this account. Exclude Spouse Sign up for this account if your spouse contributes to an HSA where they work. You can be reimbursed for you and your children’s expenses under this account. Expenses incurred by your spouse are not reimbursable.

7 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.

8 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

9 Changes & Highlights New Definition of a Dependent An employee can get reimbursed for dependents up to the end of the calendar year in which the child turns 26 years old 2013 Maximum Decrease As of January 1, 2013 the maximum for medical reimbursement accounts will be reduced to $2,500. This will affect you at the next plan year renewal.

10 Quick Fact Sheet The “Plan Year” dates October 1, 2012—September 30, 2013. 2 ½ month extension adopted. Minimum & Maximum Medical: $5,000/yr Maximum. No minimum. Dependent Care: $5,000/family/yr Maximum. No minimum.

11 Quick Fact Sheet Cost to the employee Free! Important dates to remember For all reimbursement accounts, services must be received between October 1, 2012—December 15, 2013 (including 2 ½ month grace). All receipts must be received by January 31, 2014.

12 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

13 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

14 How does it work?: 3 easy steps Step 1: Sign up! 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

15 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.

16 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)

17 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 5pm, out by Friday at 5pm. You have all year to submit reimbursement requests through January 31, 2014.

18 mySource Card.

19 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 Debit cards will be mailed in September.

20 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

21 How Do I enroll? Complete the debit card form located in your enrollment packet. Note: if you already have a mySourceCard you will not receive a new card unless your card has expired(your card is good for 3 years). You will receive an email notification informing you that your mySourceCard has been mailed.

22 For More Details... Read the YourFlex Guidebook Visit Consult Welcome Package that will be coming in the mail Call The Capitol Group: (800) 527-0669. Call FSA Administrators: (800) 858-9546.

23 Use YourFlex to sign up for a pretax break / pay increase Questions?

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

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