new! flexible spending accounts in 2008 for trust fund employees

NEW!NEW! FLEXIBLE SPENDING FLEXIBLE SPENDING ACCOUNTS IN 2008ACCOUNTS IN 2008

FOR TRUST FUND EMPLOYEESFOR TRUST FUND EMPLOYEES

FLEXIBLE SPENDING FLEXIBLE SPENDING ACCOUNTSACCOUNTS

A Flexible Spending Account (FSA) allows A Flexible Spending Account (FSA) allows you to set aside a portion of your salary to you to set aside a portion of your salary to be used to reimburse yourself for qualified be used to reimburse yourself for qualified health care and dependent care expenses. health care and dependent care expenses. Your taxable salary is reduced by the Your taxable salary is reduced by the amount deducted from your paycheck to amount deducted from your paycheck to fund your account(s), resulting in lower fund your account(s), resulting in lower income and Social Security taxes.income and Social Security taxes.


Two types of FSAs will be available as of Two types of FSAs will be available as of January 1, 2008January 1, 2008

1.1. Health Care FSAHealth Care FSA

2.2. Dependent Care FSADependent Care FSA


HEALTH CARE FSAHEALTH CARE FSA

Allows you to set aside a Allows you to set aside a specified amount of specified amount of pretax dollars to be used pretax dollars to be used for reimbursement of for reimbursement of eligible unreimbursed eligible unreimbursed medical expensesmedical expenses

DEPENDENT CARE FSADEPENDENT CARE FSA Allows you to elect a Allows you to elect a

specified amount of specified amount of pretax dollars for the pretax dollars for the reimbursement of reimbursement of employment-related employment-related dependent care expenses dependent care expenses that you and/or your that you and/or your spouse (if married) incur spouse (if married) incur due to your need to work, due to your need to work, look for work, or attend look for work, or attend school full-timeschool full-time


ELIGIBILITY FOR PARTICIPATIONELIGIBILITY FOR PARTICIPATION

Active indefinite Trust employees who work at Active indefinite Trust employees who work at least 40 hours per pay period, least 40 hours per pay period, oror active active temporary employees with appointments of at temporary employees with appointments of at least 90 days whose work schedule is at least least 90 days whose work schedule is at least 40 hours per pay period.40 hours per pay period.


OPEN SEASON ENROLLMENTOPEN SEASON ENROLLMENT

NOVEMBER 12 THROUGH DECEMBER 10NOVEMBER 12 THROUGH DECEMBER 10

Open Season enrollment will be Open Season enrollment will be onlineonline through CONEXIS at through CONEXIS at www.conexis.orgwww.conexis.org

Follow the instructions in the handout – Follow the instructions in the handout – CONEXIS ~ Online, It’s as easy as 1,2,3 !CONEXIS ~ Online, It’s as easy as 1,2,3 !


2008 annual minimum for either plan: 2008 annual minimum for either plan: $250.00$250.00

2008 annual maximum for either plan: 2008 annual maximum for either plan: $5,000.00$5,000.00


HOW ACCOUNTS ARE FUNDEDHOW ACCOUNTS ARE FUNDED Pre-tax payroll deductionsPre-tax payroll deductions Funding may have an impact on your cash flow, i.e., Funding may have an impact on your cash flow, i.e.,

you essentially “pay twice” for your eligible expenses, you essentially “pay twice” for your eligible expenses, once via pre-tax payroll deduction to fund your once via pre-tax payroll deduction to fund your account, and again when you actually incur and pay account, and again when you actually incur and pay the expense. You will realize the FSA’s full benefit the expense. You will realize the FSA’s full benefit when you receive your tax-free reimbursement.when you receive your tax-free reimbursement.

You cannot transfer funds between the HCFSA and You cannot transfer funds between the HCFSA and DCFSADCFSA


IMPACT ON YOUR PAY AND OTHER IMPACT ON YOUR PAY AND OTHER BENEFITSBENEFITS

Pre-tax FSA contributions will reduce your Pre-tax FSA contributions will reduce your taxable wages for income tax purposestaxable wages for income tax purposes

Pay-related benefits (employer-sponsored life, Pay-related benefits (employer-sponsored life, disability insurance and retirement benefits) disability insurance and retirement benefits) are not reducedare not reduced

Social Security (FICA) taxes are based on Social Security (FICA) taxes are based on your reduced pay – future Social Security your reduced pay – future Social Security benefits may be slightly lower.benefits may be slightly lower.


The Plan Year begins January 1, 2008The Plan Year begins January 1, 2008

May incur claims until March 15, 2009May incur claims until March 15, 2009

Must submit claims for reimbursement by April Must submit claims for reimbursement by April 30, 200930, 2009

You must complete a new election each year You must complete a new election each year during Open Seasonduring Open Season..


““QUALIFYING LIFE EVENTS” PERMIT CHANGEQUALIFYING LIFE EVENTS” PERMIT CHANGE Birth or adoption of a childBirth or adoption of a child Military deploymentMilitary deployment Change in legal marital status Change in legal marital status Death of a dependentDeath of a dependent Change in dependent eligibilityChange in dependent eligibility Change in employmentChange in employment Change in child/elder care provider or significant cost Change in child/elder care provider or significant cost

changechange Change in employment affecting eligibility for benefits.Change in employment affecting eligibility for benefits.

FLEXIBLE SPENDINGFLEXIBLE SPENDING ACCOUNTSACCOUNTS

HEALTH CARE FLEXIBLE SPENDING HEALTH CARE FLEXIBLE SPENDING ACCOUNTS (HCFSA)ACCOUNTS (HCFSA)

Allows you to set aside a specified amount Allows you to set aside a specified amount of pretax dollars to be used for of pretax dollars to be used for reimbursement of eligible unreimbursed reimbursement of eligible unreimbursed medical expenses.medical expenses.

HCFSAHCFSA

ELIGIBLE DEPENDENTSELIGIBLE DEPENDENTS

HCFSA expenses must be for you, your HCFSA expenses must be for you, your spouse, your child or a tax-qualified spouse, your child or a tax-qualified dependent. dependent.

A tax-qualified dependent is someone for A tax-qualified dependent is someone for whom you can claim a federal tax exemption. whom you can claim a federal tax exemption.

HCFSAHCFSA

COST SAVINGS EXAMPLE:COST SAVINGS EXAMPLE:Estimated Eligible ExpensesEstimated Eligible Expenses ExampleExample Prescription Drug CopaysPrescription Drug Copays $400.00$400.00 Doctor Visit CopaysDoctor Visit Copays 30.00 30.00 Annual Dental DeductibleAnnual Dental Deductible 50.00 50.00 Prescription EyeglassesPrescription Eyeglasses 250.00 250.00 Prescription SunglassesPrescription Sunglasses 150.00 150.00 Chiropractor VisitsChiropractor Visits 300.00 300.00 Unreimbursed dental expensesUnreimbursed dental expenses

1,000.001,000.00

TotalTotal $2,180.00 $2,180.00 Est. 30% tax bracket Est. 30% tax bracket x .30 x .30SAVINGSSAVINGS $654.00$654.00

HCFSAHCFSA EXAMPLES OF HCFSA EXAMPLES OF HCFSA ELIGIBLEELIGIBLE EXPENSESEXPENSES

Over-the-counter medicines (allergy, antacid, aspirin, etc.)Over-the-counter medicines (allergy, antacid, aspirin, etc.) Copayments, coinsurance, and deductibles (not insurance premiums)Copayments, coinsurance, and deductibles (not insurance premiums) Dental care and orthodontia (children and adults)Dental care and orthodontia (children and adults) Vision care (including eyeglasses, contact lenses, saline solution, etc.)Vision care (including eyeglasses, contact lenses, saline solution, etc.) Laser vision correctionLaser vision correction Chiropractic careChiropractic care Diagnostic servicesDiagnostic services Diabetic suppliesDiabetic supplies ImmunizationsImmunizations Hearing aidsHearing aids Orthopedic shoes and insertsOrthopedic shoes and inserts Durable medical equipment … Durable medical equipment … and moreand more

HCFSAHCFSA

EXAMPLES OF EXAMPLES OF INELIGIBLEINELIGIBLE HEALTH CARE HEALTH CARE EXPENSESEXPENSES

Expenses that are not deductible on your federal income tax Expenses that are not deductible on your federal income tax returnreturn

Controlled substancesControlled substances Cosmetic dental workCosmetic dental work Cosmetic surgeryCosmetic surgery Diaper serviceDiaper service ElectrolysisElectrolysis Health care plan contributionsHealth care plan contributions Health club duesHealth club dues Vitamins or weight loss aidsVitamins or weight loss aids

HCFSAHCFSA

WHEN TO FILE CLAIMSWHEN TO FILE CLAIMS

Claims for unreimbursed medical expenses Claims for unreimbursed medical expenses can be submitted at any time throughout the can be submitted at any time throughout the year, regardless of the funding available in year, regardless of the funding available in your HCFSA account.your HCFSA account.

HCFSAHCFSA

HOW TO SUBMIT A HCFSA CLAIMHOW TO SUBMIT A HCFSA CLAIM The request for reimbursement (claim form) is on the The request for reimbursement (claim form) is on the

CONEXIS website, CONEXIS website, www.conexis.orgwww.conexis.org

INCLUDE ONE OF THE FOLLOWING:INCLUDE ONE OF THE FOLLOWING: Itemized statement from the service providerItemized statement from the service provider Insurance explanation of benefits (EOB)Insurance explanation of benefits (EOB) Pharmacy statement for prescription drugsPharmacy statement for prescription drugs Itemized cash register receipt for eligible OTC Itemized cash register receipt for eligible OTC

medications.medications.

HCFSAHCFSA

ITEMIZED STATEMENT MUST INCLUDE:ITEMIZED STATEMENT MUST INCLUDE:

Nature of the expense (e.g. type of service or Nature of the expense (e.g. type of service or treatment provided), or if an OTC drug, the treatment provided), or if an OTC drug, the receipt must indicate the name of the drugreceipt must indicate the name of the drug

Date of serviceDate of service Name of providerName of provider Amount of the expenseAmount of the expense Patient’s namePatient’s name

HCFSAHCFSA

QUESTIONS?QUESTIONS?


DEPENDENT CARE FSADEPENDENT CARE FSA

Allows you to elect a specific amount of Allows you to elect a specific amount of pretax dollars for the reimbursement of pretax dollars for the reimbursement of employment-related dependent care employment-related dependent care expenses that you and/or your spouse (if expenses that you and/or your spouse (if married) incur due to your need to work, married) incur due to your need to work, look for work, or attend school full-time.look for work, or attend school full-time.

DCFSADCFSA

““QUALIFYING CHILD” DEFINITIONQUALIFYING CHILD” DEFINITION

An individual who is a qualifying child of the An individual who is a qualifying child of the employee, (including brother, sister, step- employee, (including brother, sister, step- sibling) or descendant of the child (niece, sibling) or descendant of the child (niece, nephew, grandchild) who shares the same nephew, grandchild) who shares the same principal place of abode with the employee for principal place of abode with the employee for over half the year and does not provide over over half the year and does not provide over half of his/her support.half of his/her support.

DCFSADCFSA

EXAMPLES OF DCFSA EXAMPLES OF DCFSA ELIGIBLEELIGIBLE EXPENSES EXPENSES Before and after school careBefore and after school care Care for a child under age 13Care for a child under age 13 Care for disabled or elderly dependentCare for disabled or elderly dependent Care given by a nannyCare given by a nanny Care at a sick child facilityCare at a sick child facility Summer day campSummer day camp Tuition for pre-kindergarten or nursery schoolTuition for pre-kindergarten or nursery school

DCFSADCFSA

IRS LIMITATIONS IF YOUR SPOUSEIRS LIMITATIONS IF YOUR SPOUSE ALSO ALSO CONTRIBUTES TO A DCFSACONTRIBUTES TO A DCFSA

You are limited to a You are limited to a combinedcombined DCFSA contribution of DCFSA contribution of $5,000 in a calendar year$5,000 in a calendar year

If you and your spouse file separate federal tax If you and your spouse file separate federal tax returns, the most you can contribute is $2,500 a yearreturns, the most you can contribute is $2,500 a year

If you file a joint return, you can’t contribute more than If you file a joint return, you can’t contribute more than you earn (or what your spouse earns, if it is less than you earn (or what your spouse earns, if it is less than what you earn for the year), with a limit of $5,000.what you earn for the year), with a limit of $5,000.

DCFSADCFSA

COST SAVINGS EXAMPLECOST SAVINGS EXAMPLE

Estimated Eligible ExpensesEstimated Eligible Expenses ExampleExample Before/after school programsBefore/after school programs

$3,000.00$3,000.00 Summer day campSummer day camp 2,000.00 2,000.00

TotalTotal $5,000.00$5,000.00 Est. 30% tax bracketEst. 30% tax bracket x .30 x .30

SAVINGSSAVINGS $1,500.00$1,500.00

DCFSADCFSA

DEPENDENT CARE CLAIMSDEPENDENT CARE CLAIMS Must be fully completed and signed, including Must be fully completed and signed, including

provider certification.provider certification. Dependent care claims without provider Dependent care claims without provider

signature/certification must include itemized signature/certification must include itemized statement with:statement with:

• Date(s) of serviceDate(s) of service• Dependent’s name and date of birthDependent’s name and date of birth• Itemization of chargesItemization of charges• Provider’s name, address and tax ID/SSNProvider’s name, address and tax ID/SSN• Note: cancelled checks, cash register receipts and credit Note: cancelled checks, cash register receipts and credit

card receipts are card receipts are notnot acceptableacceptable..

DCFSADCFSA

WHEN TO FILE CLAIMSWHEN TO FILE CLAIMS

Claims for dependent care expenses can be Claims for dependent care expenses can be submitted at any time throughout the year, but submitted at any time throughout the year, but your dependent care account balance must your dependent care account balance must be sufficient to cover the claimed amount at be sufficient to cover the claimed amount at the time of your claim submission.the time of your claim submission.

DCFSADCFSA

QUESTIONS?QUESTIONS?


REMINDER!REMINDER!

CAREFULLY CALCULATE THE AMOUNT YOU ELECT CAREFULLY CALCULATE THE AMOUNT YOU ELECT TO CONTRIBUTE TO YOUR FSA ACCOUNTS. TO CONTRIBUTE TO YOUR FSA ACCOUNTS.

THE IRS IMPOSES A THE IRS IMPOSES A ““USE IT OR LOSE ITUSE IT OR LOSE IT”” RULE – RULE – YOU FORFEIT ANY REMAINING MONEY IN YOUR YOU FORFEIT ANY REMAINING MONEY IN YOUR ACCOUNT AFTER REIMBURSEMENT OF ELIGIBLE ACCOUNT AFTER REIMBURSEMENT OF ELIGIBLE EXPENSES FOR THE YEAR.EXPENSES FOR THE YEAR.


Estimate your annual unreimbursed Estimate your annual unreimbursed medical and/or dependent care expenses. medical and/or dependent care expenses.

Follow the step-by-step instructions to Follow the step-by-step instructions to enroll online at enroll online at www.conexis.orgwww.conexis.org between between November 12 and December 10, 2007November 12 and December 10, 2007

FSA Customer Service: (866) 279-8385FSA Customer Service: (866) 279-8385

[email protected]@conexis.com

new! flexible spending accounts in 2008 for trust fund employees

Documents

flexible spending account

dependent care fsa slide

pay period

eligible expenses

dcfsa slide

work schedule

school fulltime slide

qualified health care