Flexible Spending Accounts
FSA Over the Counter Educational Resources
Participation
Participating in a flexible spending account (FSA), such as the Standard Health Care FSA or Limited FSA (for Plan C members) and the Dependent Care FSA, is an easy way to set aside money for eligible anticipated out-of-pocket health care expenses and dependent care expenses. You can choose to enroll in one or both accounts.
Reimbursement
Effective January 1, 2013 all Health Care, Dependent Care and Limited Scope FSA claim reimbursements will only be made via direct deposit. If you are not already signed up for Direct Deposit with ASI, you will receive signup information in your Welcome Packet, including a Direct Deposit application.
Through an FSA, you are reimbursed for certain eligible expenses with pre-tax dollars that you set aside upfront—money that comes out of your paycheck before Social Security, federal and most state and local taxes are deducted. Because you do not pay taxes on your FSA contributions, the amount of money you would have paid for taxes is available to you for other purposes. Each year, you specify how much of your salary you want to have deducted from your paycheck and deposited into your FSA account to cover eligible expenses.
To file a claim for an eligible expense, fill out a claim form and fax or mail the form and receipts to ASI. You may also fill out a claim form electronically and e-mail the form along with electronic copies of the receipts to claims@asiflex.com The money in your account, which has never been taxed, is then used to reimburse you for those expenses. Reimbursement of FSA claims is handled by ASI and can be paid by check or direct deposit into your bank account.
Standard Health Care FSA
For those enrolled in either Plan A or Plan B, the Standard Health Care FSA allows you to use pretax dollars to pay health care expenses allowed by the IRS, but not reimbursed by medical, dental, prescription drug or vision insurance. The minimum amount you can contribute for the year is $192.00 and the maximum is $2,500.00.
Here are a few examples of the types of expenses that are considered eligible for reimbursement under the Standard Health Care FSA:
- Health Care FSA expenses incurred in the grace period from January 1 of the plan year to March 15 of the next calendar year.
- Medical, prescription drug and dental deductibles, coinsurance and copayments
- Over-the-counter medications, such as aspirin, cold medicines, antacids and cough supplements with a prescription from a doctor
- Contact lens solution or cleaners
- Orthodontic treatment
See the table below for the minimum and maximum allowed for semi-monthly paycheck deductions of funds for your FSAs. (The 16 deduction amounts apply only to certain Kansas Board of Regents employees.) It’s important that you calculate the right amount to contribute to your FSA. Unlike the Health Savings Account, the amounts in your FSA cannot be carried over from year to year. Instead, IRS regulations require that any unspent funds in your FSA are forfeited. The “grace period” to incur expenses for Plan Year 2013 is March 15, 2014. The deadline to submit a claim is April 30, 2014.
Limited Purpose Health Care FSA - Available for Plan C with Health Savings Account Members
The minimum and maximum range amounts to deposit per semi-monthly paycheck are:
Standard and Limited Purpose Health Care FSA |
||
Health Care Flexible Spending Account |
Minimum |
Maximum |
24 deduction period employees / deduction |
$8.00/ |
$104.16/ |
16 deduction period (at regents) / deduction |
$12.00/ |
$156.25/ |
Dependent Care FSA
With the Dependent Care FSA, you can also use pre-tax dollars to pay for work-related dependent care (child(ren) or adult) expenses. The dependent must be claimed on your tax return. Your child must be under the age of 13 or if care is for an older person, he/she must be incapable of self care. If you are married, your spouse must also work, be a full-time student or disabled. If you are divorced, you must be the custodial parent, but are not required to claim the exemption on your tax return. Annually, the minimum amount you can contribute for the year is $384 and the maximum amount you can contribute is $5,000.
Refer to the table on the next page for paycheck deduction amounts.
Below are a few examples of the types of expenses eligible for reimbursement under the Dependent Care FSA. Dates of service must be between January 1st and December 31st of the plan year. (You can refer to IRS publication 503 for more information.)
- Payments to a private babysitter
- Payments to a day care center
- Payments for summer day camp (if it allows you to work)
- Payments to an adult dependent day care center
Note: To receive reimbursement, you must submit your provider’s Social Security Number or Employer Identification Number (EIN).
There is no grace period for the Dependent Care FSA. You have until April 30, 2014 to submit documentation for reimbursement of the Plan Year 2013 dependent care expenses. This means you must plan carefully the amount you put into your FSA so that it does not exceed the amount you are likely to pay for eligible expenses. Fortunately, many of these expenses can be predicted in advance.
Dependent Care Flexible Spending Account |
Minimum |
Maximum |
24 deduction period employees / deduction |
$16.00/ |
$208.33*/ |
16 deduction period (at regents) / deduction |
$24.00/ |
$312.50*/ |
* Subject to tax filing status