Yin and Yang of Cafeteria Plans

Transcription

1 Yin and Yang of Cafeteria Plans Stacey Noland Jan Jackson Agenda Commuter Program Health Care FSA NEW Limited Scope Health Care FSA Dependent Care FSA NEW Grace Period NEW User ID & Password NEW Contest Commuter Program Do you pay to park? If so, you could save money by enrolling in this program Do you pay to commute to work? If you commute in a van pool or by mass transit, you could save money by enrolling Monthly Limit = $230 Not limited to open enrollment You can stop and start at any time 1

2 What is a Flexible Spending Account (FSA)? Pre-tax money for medical or dependent care Three separate accounts: Health Care FSA Limited Scope Health Care FSA NEW THIS YEAR! Dependent Care FSA Provide savings of at least 25% for eligible items Check out tax savings calculator for your estimated savings Avoid paying federal & state income & FICA taxes These are expenses you will be incurring regardless, so you might as well save some money Let s inspect the Health Care FSA and the NEW Limited Scope Health Care FSA Health Care FSA Pre-tax dollars for medical Medical expenses can be for you, your spouse or any tax dependents Lots of eligible expenses Check out the eligible expense list at Full election available up front The State fronts your entire annual election, so if you plan a large expense early in the year, you get a 0% loan! 2

3 Election Amount You can set aside up to $2,500 This is a new limit set forth by the Federal government The more you set aside, the more you save! Per enrollee limitation If your spouse has access to a Health Care FSA through the State or his/her employer, you can each set aside up to $2,500 What expenses are eligible for the Health Care FSA? Co-pays, co-insurance & deductibles Prescription drug costs Dental expenses including orthodontia Eye care including glasses, laser surgery & contact lenses And many more...check out for more The NEW Limited Scope Health Care FSA Works outside of the box You can enroll in the HDHP, have an HSA, and an FSA for dental and vision expenses Dental and Vision Expenses Only This new plan will only reimburse expenses related to dental and vision services and medications Similar to the Health Care FSA Other than being limited to dental and vision expenses, it works the same way You can have both an HSA and a Limited Scope Health Care FSA! 3

4 Let s review the Dependent Care FSA Dependent Care FSA Tax savings on child/elder care You can set aside up to $5,000 per household for child or elder care expenses Save at least 25% Most people save at least 25% on each dollar that is set aside in the plan Age Limit Federal rules require that the child be under the age of 13 or incapable of selfcare NEW -FSA Grace Period Put your pencil to paper and figure out your expenses Year-to-year accounts You have to use funds each year Unused funds are forfeited to the State FSA Grace Period Extends coverage to March 15 th following end of plan year Claims Filing Deadline You still have until April 15 th to file claims 4

5 POP is Opt-Out Insurance Benefit Everyone is Auto-enrolled for all premium categories Pay post-tax requires action to opt out You can opt out via or by completing an enrollment form CAUTION: Remember to remind employees about voluntary products Annual Enrollments Pay post-tax requires opt out action each year POP benefits everyone The State and You Employee - Federal and State income and FICA tax savings Employer - FICA tax savings Direct Deposit Sign up for Direct Deposit Get your money back faster! Checking or savings account You can choose either a checking or a savings account /Text Notification ASIFlex can provide you /text notices when a claim has been processed Just a few quick things Use it or lose it The FSA accounts are annual commitments and you must use up your money each year Re-Enroll Each Year Federal rules require that you re-enroll in the FSA each year Elections are Fixed Election amounts are fixed for the entire plan year, once OE has closed NOTE: This does not apply to the Commuter Program! 5

6 User ID & Password Effective September 1, 2012, you can now create a User ID & Password on You will need your PIN to set this up On confirmation sheet Call us at After the initial set up, you will no longer need your PIN New Contest During Open Enrollment Answer some questions One entry per employee Winners will be randomly selected Win an ipad HAVE QUESTIONS? There is no such thing as a bad question! For Questions or Comments please call ASIFlex at 1 (800)