flexible spending accounts: the basics
Post on 01-Jul-2015
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DESCRIPTIONLearn the ins and outs for Flexible Spending Accounts (FSA). This presentation outlines who is covered, what's covered, how much you can set aside in an FSA, healthcare reform such as the OTC prescription requirement and much more!
- 1. FSA Basics What is a Flexible Spending Account (FSA)?
2. Millions of Americans have Flexible Spending Accounts (FSAs), and were here to set the record straight on these great employee benefit plans. FSAs allow employees to set aside pre-tax money throughout a given year through payroll deductions. Employees can use their FSA for qualifying healthcare expenses such as medical services and healthcare products. What is an FSA? 3. Coverage for a Flexible Spending Account FSAs are an employee benefit. Check to see if your company offers one. FSAs can cover you, your spouse and children through the age of 26, or anyone who qualifies as a tax dependent. Who is covered by an FSA? 4. How much can I set aside in an FSA? Employees can set aside up to $2,500 per FSA. If your spouse has a separate FSA account, you could effectively set aside up to $5,000 per household. Sometimes, an employer may also contribute to an FSA (if so, these contributions are non- taxable and do not count toward the $2,500 limit). 5. FSA Eligible Expenses Include: -Medical products -Prescription drugs -Visits with healthcare providers -Specialists not covered by regular health insurance (chiropractors, etc.) -Routine dental & eye care -Medical Procedures (LASIK eye surgery) If youre unsure of what medical products and services are covered by your benefits, check out FSAstore.coms Eligibility List for the most comprehensive listing of FSA eligible expenses on the web! What is covered by an FSA? 6. Does my FSA cover over-the-counter (OTC) items? Yes, there are thousands of products that you can buy, and FSAstore.com makes it easy to shop because everything we sell is FSA eligible. If you plan to use your FSA to purchase eligible OTC items containing medicine including pain relief (Advil and Tylenol), allergy, cold and flu medicines and much more, these items require a prescription in order to be reimbursed. These rules were put into effect by HealthCare Reform in 2011. FSAstore.com makes it easy by allowing you to submit your prescription through our site to pay with your FSA card, or by paying with a credit card and submitting your prescription directly to your FSA provider. 7. How can I tell which products require a prescription? All items sold at FSAstore.com feature a Red Checkmark or a Blue Rx logo. Red Checkmarks are products that are available without a prescription and can be purchased with an FSA or major credit/debit card. Blue Rx Symbols are items that require a prescription from a doctor to be reimbursed through an FSA, and can be purchased with an FSA or major credit/debit card. 8. Are there any restrictions with FSAs? Flexible Spending Accounts are Use it or Lose it accounts, meaning that FSA account holders lose any remaining funds not used by the end of their plan year. However, the U.S. Treasury and IRS changed this rule to make FSAs a lot more flexible. Employers can now offer one of two options: a two-and-a-half month grace period that allows people to spend down remaining funds or incur new expenses, or a carryover of up to $500 into the next year. These options are left up to the employer, so workers will need to find out exactly what rules are in place to maximize their benefits. 9. How can I keep track of my FSA? One of the biggest problems employees have with their FSAs is planning ahead. It can be difficult to tell over the course of a year how much they will need to spend or set aside. FSAstore.com makes it easy to keep track of these expenses with our FSA Calculator. This handy tool can help estimate yearly health spending to make informed decisions and take maximum advantage of an FSA. 10. Want to learn more? FSAstore.com is your one-stop destination for FSA eligible products, and is a great resource for anyone looking for information about their employee benefits. Check out our FSA Learning Center for answers to your questions about FSAs, HSAs, Dependent Care FSAs and more. Last but not least, check out the FSA Blog for news that could affect your benefits, as well as ideas on how you can use your FSA year-round to improve the health and wellbeing of you and your family.