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Flexible Spending Accounts • Flexible Spending Accounts are a smart way to: o Lower your taxable income by 25% - 30% o Save money on out-of-pocket health care and daycare needs o Reimbursements are made by direct deposit 33
Health Care FSA Health Care FSA • 2018 o 2018 Maximum annual contribution was - $2,600 o $25 to $500 unused 2018 funds will roll over to 2019 o Expenses must be incurred between 1/1/18 – 12/31/18 – no more extension o Expenses for 2018 funds can be submitted until April 30, 2019 • 2019 o Maximum annual contribution - $2,650 o $25 to $500 unused 2019 funds will roll over to 2020 o Expenses must be incurred between 1/1/19 – 12/31/19 – no more extension o Expenses for 2019 funds can be submitted until April 30, 2020 Reminders o Expenses can be for you, your spouse, your dependent children or a qualifying relative o Full Election Available Immediately January 1 each year 34
Health Care FSA • Eligible expense examples o Medical — acupuncture, chiropractic care, deductibles o Vision — eye exams, contact lens and lens solution, LASIK surgery o Dental — out-of-packet fees, orthodontics o Medications — prescription drug co-pays, diabetic supplies, over-the-counter medicines (with a prescription or letter of medical necessity) o Everyday health products like - bandages, hot and cold packs, sunscreen SPF 15+, hearing aids and batteries, medical alert bracelets, orthotics, prenatal vitamins • Eligible expenses that require a letter of medical necessity o Weight loss programs such as Eat Smart Move More Weigh Less o Ear wax removal kits o Cold medicines, cough drops, syrups, lozenges • Ineligible expense examples o Premiums, cosmetic procedures (teeth whitening) 35
Health Care FSA • FSAStore.com – The Flexible Spending Account Site o National site o Online store that has over 4,000 FSA eligible products • Easily identify products: • No prescription necessary items Prescription or letter of medical necessity items • Pay with FSA card • Free shipping offers • Savings up to 40% on every day health products using tax free dollars • FSA store coupons emailed to you during the year 36
Dependent Day Care FSA Dependent Daycare FSA • Funds available via convenience card once payroll deducted o Same card as HFSA Reminders • $5,000 account maximum for most employees (per household) • Both employee and spouse must work to participate • Reimbursement is limited to your available account balance • Special rules for separated/divorced employees • Check with your tax professional about tax issues related to DDCFSA 37
Dependent Day Care FSA • Eligible expenses o Daycare through age 12 o Or disabled dependents of any age o Before/after-school care beginning with kindergarten through age 12 o Payments (in lieu of regular day care) to day camps, but not overnight camps o Elder day care services and expenses* o eligibility rules on page 7 of the NCFlex 2019 guide • Ineligible expense examples o Kindergarten tuition expenses o Overnight camps • More examples can be found on our website, www.ncflex.org 38
NCFlex Convenience Card NCFlex Convenience Card • For 2019 you can use the card to pay for eligible DDCFSA expenses in addition to eligible health care expenses Reminders • Cards issued at no cost to participants o Cards are good for 3 years from date of issue (date on card) o P&A will automatically re-order • Use like a credit card – no PIN required • No reimbursement delays or out of pocket expenses • No additional charge for dependent or replacement cards • Report lost of stolen card immediately to P&A Group 39
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