Your Flexible Spending Account How to Maximize Your

Your Flexible Spending Account: How to Maximize Your Money

What is a Flexible Spending Account? A Flexible Spending Account is a tax benefit that allows you to set aside part of your pay before taxes for eligible medical or dependent care expenses

Account Choices Health Care Flexible Spending Account Dependent Care Flexible Spending Account

What’s the Benefit? • Pay fewer taxes • Increase spendable income • Uniform Coverage Rule allows full access to your health care election

Savings Example With an FSA: Without an FSA: Salary $30, 000. 00 Salary FSA election -$2, 500. 00 FSA election Taxable income $27, 500. 00 Taxable income $30, 000. 00 Taxes -$7, 500. 00 Taxes -$9, 000. 00 Take home pay $20, 000. 00 Take home pay $21, 000. 00 FSA funds +$2, 500. 00 FSA funds Spendable income: $22, 500. 00 Spendable income: $30, 000. 00 -$0. 00 +$0. 00 $21, 000. 00

• Deductibles and co-pays (including prescriptions)* • Dental and orthodontia expenses* • Vision expenses (exams, eyeglasses, contact lenses and solution, Lasik)* *After insurance has paid their portion

Dependent Care Child care, preschool or adult dependent day care – – Children under age 13 or adult who is your IRS tax dependent Dependent must live with you Expense must happen while you are at work Married? Your spouse must work or be a full-time student

Getting Reimbursed • After expense has happened • No proof of payment is required • Submit claims and receipts online, mobile app, mail or fax • Claims are processed within two business days • Receive a check in the mail or direct deposit

Health Care Documentation • A receipt, statement or explanation of benefits showing: – Name of patient – Date of service – Dollar amount – Service or drug provided – Name of physician or pharmacy • Your signature on the Reimbursement Request Form if submitting a manual claim

Over-the-counter Documentation • A cash register receipt showing: – Product name – Price – Date of purchase • Your signature and the name of the family member on the Reimbursement Request Form if submitting a manual claim

OTC Expenses that will be approved Bandages Splints Contact lens solution Crutches, wheelchairs and walkers • Insulin • •

OTC expenses that can be covered • • Allergy and sinus medicines Anti-itch and insect bites Ointments/creams Cold sore remedies Cough, cold and flu Digestive aids Pain relief

Dependent Care Documentation • If you have a statement or receipt: – Dependent name – To and from dates (example: January 1 to January 31) – Provider name, Tax ID# and address • Your signature on the Reimbursement Request Form • Without a statement, you may ask your provider to complete and sign the Reimbursement Request Form

The Debit Card: Easy Access

How the Debit Card Works • Use your card at the place of service • Save your itemized receipts

Why use the Debit Card? • • No money paid out-of-pocket No waiting for reimbursement Immediate identification of eligible purchases Automatic approval of certain recurring expenses

What is an Eligible Expense? • Dental, vision and medical expenses can be reimbursed through your FSA • Service must have happened • Must go through all eligible insurance first • Use your debit card after insurance has paid their portion

Co-pays and Plan Information • Office call co-pays • Co-pays for expenses through a spouse’s plan may not auto-approve • Plan year - January through December • Run-out period in which to submit claims in the plan year • Carryover of unused balance up to $500

Debit Card Follow-up • Request for your receipts by letter • First letter – shortly after swipe • Second letter – 15 days following the first letter • Third and final letter – 30 days following the first letter • Card may be temporarily deactivated

No Substantiation? • Ineligible expenses or lost receipts – – Repay the expense Send in claims to offset Add to W-2 as taxable income Withhold from pay

Not using your debit card? After expense has happened No proof of payment is required Submit claims online, mobile app, mail or fax Your claim is processed within two business days • Receive a check in the mail or direct deposit • •

How Much Should I set Aside? • Use the Flex Worksheet to help plan for your upcoming expenses • Check list of eligible expenses for items and services you need • When in doubt, underestimate! • Annual health care maximum: set by employer • Annual dependent care maximum: set by the IRS www. infinisource. net

Making an Annual Election • Annual election • Changes allowed only for life events – Marriage, birth or adoption - increase – Divorce or death - decrease – Must be made within 30 days • Forfeitures www. infinisource. net

What Else do I Need to Know? • You have anytime, anywhere online access to your account • Claims are sometimes pended or denied – Missing signature or information – Illegible fax – Ineligible expense • You will receive a letter • This protects the tax benefit status of the plan www. infinisource. net

Transportation Plan How to Lower Commuting Costs www. infinisource. net

What is a Transportation Plan? A Transportation Plan is a tax benefit that allows you to set aside part of your pay before taxes for eligible expenses for transit passes, parking and vanpooling www. infinisource. net

What’s the Benefit? You pay fewer taxes You increase your spendable income Can be partially or fully employer paid Not subject to ERISA, Cafeteria Plan rules Monthly limits You can adjust or revoke your elections monthly • Amounts carry over from month to month • • • www. infinisource. net

What’s the Benefit? With a Transportation Plan: Without a Transportation Plan: Monthly salary $3, 000. 00 Monthly election -$100. 00 Monthly election -$0. 00 Taxable income $2, 900. 00 Taxable income $3, 000. 00 FICA/Taxes -$870. 00 FICA/Taxes Take home pay $2, 030. 00 Take home pay Plan funds +$100. 00 Plan funds Spendable income: $2, 130. 00 Spendable income: www. infinisource. net -$900. 00 $2, 100. 00 +$0. 00 $2, 100. 00

Benefit Choices Transit Passes Qualified Parking Vanpooling www. infinisource. net

Parking • Must be at or near workplace or commuting location • Employee use only • Not available for temporary work locations • If payments are monthly, need not prorate for days missed www. infinisource. net

Vanpooling • Must be in commuter highway vehicle – Six or more seating capacity – 80% of use must be for commuting • Two main types – Employer-operated – Employee-operated • Not a common benefit www. infinisource. net

Monthly Limits • Transit Pass/Vanpooling: • Parking: www. infinisource. net $270. 00

Important Change to Reimbursements • In 2016, employers will no longer be permitted to provide qualified transportation fringe benefit in the form of cash reimbursement where vouchers or smart cards are readily available. • Debit card will be the only transit transaction type in 2016— manual or online reimbursements will not be available. • Debit cards will be restricted for use only at merchant terminals at point of sale at which only fare media for local transit systems can be purchased. • Debit card transactions, since they are terminal restricted, will approve at 100%. www. infinisource. net

How Much Should I set Aside? • Determine which benefit you will need • Check the cost of the benefit • Make your election • Pay attention to cost changes and make appropriate election changes www. infinisource. net

Making a Monthly Election • Monthly election • Changes allowed for any reason • Forfeitures – Must be eligible to receive benefit – No post-termination benefit www. infinisource. net

What Else do I Need to Know? • You have anytime, anywhere online access to your account • Claims are sometimes pended or denied – Missing signature or information – Illegible fax – Ineligible expense • You will receive a letter • This protects the tax benefit status of the plan www. infinisource. net

What Else do I Need to Know? • Self-employed individuals and former employees cannot participate • Infinisource provides all required documents – Plan Document – Participant Summary – Enrollment Form – Reimbursement Form – Readily Available Test www. infinisource. net

Have a Question? Infinisource Customer Service 866 -370 -3040 Monday through Thursday, 8 a. m. to 8 p. m. , ET Friday, 8 a. m. to 6 p. m. , ET www. infinisource. net

Maximize Your Money, Because it Matters Start saving money with an FSA today! www. infinisource. net

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