Today’s Know ledge – Tom orrow 's Solutions
Flexible Spending Accounts (FSAs) Today we will talk about saving tax dollars Flex Spending Accounts • Medical FSA • Dependent Care FSA Limited Purpose FSA Participant Portal for online access
Employees Save Money Using FSAs • No taxes paid on every dollar you set aside • Easy payroll deduction • Eligible expenses are covered for all IRS-defined dependents Ask yourself… How about after school care for the kids? Anyone need new eyeglasses this year?
Who Can Participate? • All benefit-eligible employees – No need to be enrolled your employer’s health plan to participate. – You may also use a Medical FSA for your IRS-defined tax dependents. • Exception: Health Savings Accounts – If you or your spouse plan to open an HSA in 2013, your 2012 FSA must have a zero balance by 12/31/2012 to open an HSA in 2013. • Limited Purpose FSA: If you or your spouse contribute to an HSA, your FSA is “limited” to dental, vision and preventive care until the HSA statutory limit has been met. For 2013, after minimum deductible of $1250 Single or $2500 Family has been incurred, the account will no longer be limited and will cover FSA general medical expenses.
Medical FSA: What’s new for 2012 The Patient Protection and Affordable Care Act (PPACA) imposes a federal Medical FSA Salary Reduction Cap of $2500 for the taxable year beginning January 1, 2013. 2 0 1 3 : $ 2 5 0 0 m axim um FSA election 2 0 1 2 : $ 5 0 0 0 m axim um FSA election This applies to Medical FSA and Lim ited Purpose FSA Use-it-or-lose-it Rule still applies to all FSAs!
Dependent Care FSA • Dependent Care for (children up to their 13 th birthday) who need care while parents are working, and/or • Elder Care for your IRS-qualified elder dependent who needs care while family members are working The IRS limits for Dependent Care: Max: $5000 per year for single or married filing jointly Max: $2500 per year for married filing separately That’s $5000 a year subtracted from your taxable income! Sample of eligible expenses: Before & after school care, pre- school, day camps, fees paid to a provider in your home or their home. Sample of ineligible expenses: Kindergarten, Child Support, overnight camp, incidental babysitting.
Limited Purpose Medical FSA • I f you participate in a HDHP and you m ay open an HSA and enroll in a Lim ited Purpose FSA • I RS rules lim it the use of a Lim ited Purpose FSA to Vision & Dental expenses • W hy? Prevents “double dipping” from HSA and FSA for m edical expenses • Allow s your HSA to accum ulate for future expenses • Use your LP FSA for predictable Vision & Dental expenses ( use-it-or-lose-it)
How Much Do I Elect? . This estimator can help you decide how much you spend annually on medical, dental or vision expenses. • Is orthodontia in your family’s future? • Does anyone need glasses? • Contacts? • Prescriptions?
These are Some Ineligible Medical FSA Expenses • Teeth w hitening • Cosm etic surgery • I nsurance prem ium s • Electrolysis • Hair transplant • Care from non-licensed m edical professionals AND - new since 2 0 1 1 : • Over the Counter m edication w ithout a w ritten prescription from a provider and a diagnosis
Special Notes: The Medical FSA, Limited Purpose Medical FSA and Dependent Care FSA are IRS-regulated benefits and there are rules that go along with using these plans. Your best source of information about these plans is your Summary Plan Description Questions? Our Reimbursement Services Team is available. GDI ensures every call is answered by a live person during business hours, Monday-Friday, 8 am to 5pm. Email: reimbursementteam@gdynamic.com 800-626-3539
GDI’s Consumer Porta l
Action notices to you Shortcut to Account Details Snapshot of elections, online claim entry and available balances. Participant home Participant Account Inquiry Screen page
The Account Summary page for detailed account activity.
Summary of demographic information, ability to update bank accounts, order debit cards for dependents, etc. Account notifications are sent via email (if you provide your email address by clicking on “Update Profile” Click “Add Dependent” to add your SPOUSE and/or DEPENDENT
A history of all notifications sent to you to date
Forms for your use
Thank you for choosing GDI! More w ays to find out about FSA’s: • Your Summary Plan Description • GDI website at www.gdynamic.com • Call our Reimbursement Service Team at 800-626-3539 • Email: reimbursementteam@gdynamic.com
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