32 Flexible Spending Accounts Flexible Spending Accounts are a - - PowerPoint PPT Presentation

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Flexible Spending Accounts

• Flexible Spending Accounts are a smart way to:
• Lower your taxable income by 25% - 30%
• Save money on out-of-pocket health care and daycare needs
• Reimbursements are made by direct deposit

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Health Care FSA

Health Care FSA

• 2018
• 2018 Maximum annual contribution was - $2,600
• $25 to $500 unused 2018 funds will roll over to 2019
• Expenses must be incurred between 1/1/18 – 12/31/18 – no more extension
• Expenses for 2018 funds can be submitted until April 30, 2019
• 2019
• Maximum annual contribution - $2,650
• $25 to $500 unused 2019 funds will roll over to 2020
• Expenses must be incurred between 1/1/19 – 12/31/19 – no more extension
• Expenses for 2019 funds can be submitted until April 30, 2020

Reminders

• Expenses can be for you, your spouse, your dependent children or a qualifying

relative

• Full Election Available Immediately January 1 each year

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Health Care FSA

• Eligible expense examples
• Medical — acupuncture, chiropractic care, deductibles
• Vision — eye exams, contact lens and lens solution, LASIK surgery
• Dental — out-of-packet fees, orthodontics
• Medications — prescription drug co-pays, diabetic supplies, over-the-counter

medicines (with a prescription or letter of medical necessity)

• 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
• Weight loss programs such as Eat Smart Move More Weigh Less
• Ear wax removal kits
• Cold medicines, cough drops, syrups, lozenges
• Ineligible expense examples
• Premiums, cosmetic procedures (teeth whitening)

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Health Care FSA

• FSAStore.com – The Flexible Spending Account Site
• National site
• 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

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Dependent Day Care FSA

Dependent Daycare FSA

• Funds available via convenience card once payroll deducted
• 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

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Dependent Day Care FSA

• Eligible expenses
• Daycare through age 12
• Or disabled dependents of any age
• Before/after-school care beginning with kindergarten through age 12
• Payments (in lieu of regular day care) to day camps, but not overnight camps
• Elder day care services and expenses*
• eligibility rules on page 7 of the NCFlex 2019 guide
• Ineligible expense examples
• Kindergarten tuition expenses
• Overnight camps
• More examples can be found on our website, www.ncflex.org

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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
• Cards are good for 3 years from date of issue (date on card)
• 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