Presented by City of Flagstaff Flexible Spending Account Overview.
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Presented by City of Flagstaff Flexible Spending Account Overview
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Transcript of Presented by City of Flagstaff Flexible Spending Account Overview.
Presented byCity of Flagstaff
Flexible Spending Account Overview
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Who is ASIFlex?Who is ASIFlex?
• Flexible Spending Account Administrator for over 20 years
• Located in Columbia, MO
• Customer Service is our Priority!
• Toll-free phone number 800-659-3035 is always answered by a live customer service rep
• On average, one business day turn around time on claims processing
• Toll-free fax for claims submission, 877-879-9038
• Online claims submission portal, secure message center, account detail and more at: http://my.asiflex.com
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Pre-Tax Spending AccountsPre-Tax Spending Accounts
• Health Care Flexible Spending Account (HCFSA)– Pre-tax money for out-of-pocket medical expenses
– Includes deductibles, co-pays, dental work, etc.
– Expenses can be for you, your spouse or any of your tax dependents (regardless of whose insurance the dependent is on)
• Dependent Care Flexible Spending Account (DCFSA)
– Reimbursement for qualified care of a tax dependent
– Reimbursement for childcare expenses
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How much can you save?How much can you save?
• Most people save at least 25% on each dollar they contribute
Example:
You could save at least $125 on a $500 pair of glasses by using pre-tax dollars!
• Check out the Tax Savings Calculator at www.asiflex.com
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How do Flexible Spending Accounts work?How do Flexible Spending Accounts work?
• First, you decide how much money you want to set aside into your Flexible Spending Account (FSA)
• Make this decision during Open Enrollment or when you are first eligible to enroll
• Your annual election is deducted evenly from each paycheck over the course of the year before income and FICA taxes are assessed
• This means more money in your pocket!!
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How do you access your money?How do you access your money?
• Incur an eligible expense (co-pay, prescription, chiropractic adjustment, etc.)
• Submit claims with supporting documentation for reimbursement
• Complete claims typically processed within 1-2 days of receipt
• Use your FSA debit card to pay for your out-of-pocket medical expenses
• The debit card is available only for the health care FSA. Dependent Care FSA expenses must be submitted to ASIFlex for reimbursement.
Health Care Flexible Spending AccountHealth Care Flexible Spending Account
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Commonly Claimed ExpensesCommonly Claimed Expenses
Glasses Dental Work Lab Work
Medical imaging Chiropractic Care Prescriptions
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REGULATORY CHANGEREGULATORY CHANGE
• Over-the-Counter Drugs/Meds– Eligible but only with a prescription– Effective for items purchased 1/1/2011 forward– Examples of items that will now require a
prescription for reimbursement include:
• For a complete list go to www.asiflex.com
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How much to set asideHow much to set aside
• Maximum of up to $2,500 per plan year– If your spouse works for the City (or another employer
offering this benefit), you may each set aside up to the maximum annual contribution
• Deducted over the course of the plan year
• Available to you in full on July 1
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Your funds are…Your funds are…
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Easy ReimbursementEasy Reimbursement
• ASIFlex can issue direct deposits to a checking or savings account
• You can receive e-mail letting you know when a reimbursement has come through
• FSA Debit Card to pay for eligible out-of-pocket health care expenses.
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FSA Debit CardFSA Debit Card
• Use the debit card for out-of-pocket medical expenses only
• Card use is restricted to use at:
– Known health care providers
– Many (but not all) retail outlets; some are:
– Wal-Mart– Sam’s Club– Walgreen’s– Safeway
– Rite Aid– Target– Fred Meyer– Costco
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FSA Debit Card FSA Debit Card (continued)(continued)
Doesn’t necessarily eliminate paperwork
− Every transaction must be substantiated somehow
− Some substantiation can be done electronically
− Remaining purchases prompt a request for documentation
− Always keep your documentation even if ASIFlex does not ask for it
Dependent CareDependent CareFlexible Spending AccountFlexible Spending Account
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DCFSADCFSA
• Provides a tax break on child or other dependent care expenses incurred while:– You go to work (single parent)
– You and your spouse go to work
– You go to work and your spouse:
– Looks for work
– Pursues an educational opportunity full-time
– Is the dependent who needs the care
• Other expenses are not eligibleFor example, getting a babysitter for a Friday night date is not an eligible expense
Or
Or
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Eligible DependentsEligible Dependents
• Children under the age of 13*
• Older dependents unable to care for themselves– Who live in your home at least 8 hours per day
– Must meet IRS income guideline
*You or your spouse must be custodial parent with over 50% custody if divorced
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Eligible ExpensesEligible Expenses
• Day care services
• General purpose day camps
• Babysitters
• Pre-school
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Ineligible Expenses IncludeIneligible Expenses Include
• Cost of food and transportation if itemized
• Educational expenses– Includes private schools
• Overnight camps
• Payments to your spouse or any other dependent
• Payments to your child under 19, even if he or she is not your dependent
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Deduction AmountDeduction Amount
Family maximum of $5,000/year
This is an IRS maximum per household
• Deposit directly into your bank account• Receive notice of deposit via e-mail
Receiving PaymentReceiving Payment
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Important Points to RememberImportant Points to Remember
Regarding both Health Care & Dependent Care FSA
• Debit card is not available for DCAP expenses
• Employees who wish to continue to participate in either HCFSA or DCFSA must enroll every year, even if they want to set aside the same amounts
• Election is generally fixed for the entire plan year
• Unused funds will go back to the plan administrator– Use it or lose it by the deadline
– Start small if you are unsure of how much you will actually spend
– Keeping track of your account is very easy
