2016 FSA Benefit Alert

Transcription

1 2016 FSA Benefit Alert Fairview Park Schools FSA Open Enrollment In This Alert: Page Content 2 Online Enrollment Info 3 FSA Benefit 4-6 FSA Eligible / Ineligible Expenses FSA Open Enrollment November 9th through November 30th Dear Staff: Now s your chance to set aside money and dependent care expenses on a tax-differed basis. Beginning now (Nov 9) through November 30, log into your BenXpress portal and sign-up for an FSA account for the 2016 calendar year. Instructions are included below. If you are currently enrolled in the Flexible Spending Account Plan and would like to participate in 2016, you must re-enroll through BenXpress. Your elected amount does not carry over from year to year. During this enrollment, you can enroll in our Flexible Spending Benefit plan. This is an ACTIVE enrollment, which means you must enroll by Monday, November 30, If you do not elect to contribute to a Flexible Spending Account you will have no benefit for the Plan Year According to eligibility rules, you may only change benefit elections mid year if you experience a Qualifying Event. You must wait until the next annual enrollment to Waive the FSA benefit plan Participate, if you did not sign up within the first 30 days of becoming eligible. The Healthcare Flex Spending Account annual maximum is $2,500 The Dependent Care Account annual maximum is $5,000 (please see page 3 for further details) To make enrollment quick and easy, we put all the information you need right at your fingertips; flip the page to see your login instructions. Questions? Please contact the Treasurer s office at (440) ext and ask for Patti Riccardi. intended as a detailed overview of benefits, limitations and/or exclusions may apply. Please refer to your Plan Booklet for a complete explanation of your benefits. In the event a discrepancy exists, the policy provisions will prevail. 1

2 Online Enrollment Instructions Open enrollment will be conducted through EASE featuring BenXpress November 9th through November 30th. All employees must log in to the system and take action no later than November 30th in order to elect and confirm FSA benefits for a January 1st effective date. Go to: Username: First six letters of last name, plus first initial of first name (all lower case), then last four digits of your social security number (example Sarah Miller login: millers1234) Password: Full first name and birth year (example: sarah1958) BenXpress will allow you to: Enroll for benefits and manage life events Access benefit information and forms Connect directly to carrier websites from one point of login BenXpress is a secure, HIPAA protected, web based enrollment program which will provide you with additional resources and information about your Fairview Park Schools benefits. 2

3 Flexible Spending Accounts What is a Flexible Spending Account (FSA)? A Flexible Spending Account allows you to pay for your family s out-of pocket medical and dependent care expenses with pretax income. You can elect to deposit a part of your before-tax income to a personal reimbursement account that you use to pay for qualified expenses incurred during the plan year. Amounts you put into your FSA plan are deducted before federal, state and social security taxes are withheld. The FSA plan year runs from January 1 through December 31. The Healthcare FSA maximum contribution is $2,500. See page 4-6 for eligible deductible medical expenses. A Dependent Care account is part of the FSA program. The Dependent Care is maintained as a separate account with separate deductions. Care must be for dependent children under age 13, for a spouse or dependent who is physically or mentally not able to care for themselves and resides with you for more than half the year, or elder care. The maximum annual deduction for the dependent care plan is $5,000 unless you are married but file separately. In this case, the maximum deduction is $2,500. All persons and organizations that provide dependent care must be properly identified and provide their name, address and taxpayer identification number. An Example Sam s family will have expenses for office visit and prescription copays that will be at least $400 this year. In addition, his wife plans to get new eyeglasses that will cost $220. And payments on his son s braces will cost $1,200 this year. So Sam knows he will have at least $1,820 in medical expenses in the coming year. Let s see how using a medical FSA can help save taxes for Sam and his family. With FSA Without FSA Sam s gross annual pay $43,000 $43,000 Less pretax FSA deduction -$1,820 -$0- Adjusted taxable income $41,180 $43,000 Less Income taxes withheld -$6,177 -$6,450 Net Pay $35,003 $36,550 Disposable income $35,003 $36,550 Sam s Out of Pocket Medical Expenses Dental (braces) $1,200 Vision (glasses) $220 Copays $400 Total per year $1,820 *FSA balance available for health care reimbursement is $1,820 Sam s net pay is lower with the FSA. But don t forget when he turns in an expense claim, that money will be there for him tax free. That adds almost $1,547 to Sam s disposable income by the end of the year! This example assumes Sam is in the 15% federal tax bracket. Your tax savings will depend on your personal situation and individual tax bracket. 3

4 Flexible Spending Accounts Eligible Medical Expenses An eligible expense is defined as those expenses paid for care as described in Section 213 (d) of the Internal Revenue Code. Below are lists which may help determine whether an expense is eligible. Deductible Medical Expenses Abdominal Supports Abortion Acupuncture Air Conditioner (when necessary relief from difficulty in breathing) Alcoholism Treatment Ambulance Anesthetist Arch Supports Artificial Limbs Autoette (when used for relief of sickness/ disability) Birth Control Pills (by Prescription) Blood Tests Blood transfusions Braces Cardiographs Christian Science Practitioner Contact lenses Contraceptive devices (by prescription) Crutches Dental treatment Dental X-rays Dentures Dermatologist Diagnostic fees Diathermy Drug addiction therapy Drugs (prescription) Elastic hosiery (prescription) Eyeglasses Fees paid to health institute prescribed by a doctor FICA & FUTA tax paid for medical care service Fluoridation unit Guide dog Gum treatment Gynecologist Healing Services Hearing aids and batteries Hospital bills Hydrotherapy Insulin treatment Lab tests Lead pain removal Legal fees Lodging (away from home for outpatient care) Metabolism tests Neurologist Nursing (including board & meals) Obstetrician Operating room costs Ophthalmologist Optician Optometrist Oral surgery Organ transplant (including donor s expense) Orthopedic shoes Orthopedist Osteopath Oxygen & Oxygen equipment Pediatrician Physician Physiotherapist Podiatrist Postnatal treatments Practical nurse for medical services Prenatal care Prescription medicines Psychiatrist Psychoanalyst Psychologist 4

5 FSA Eligible Medical Expenses continued Psychotherapy Radium therapy Registered nurse Special school costs for the handicapped Spinal fluid test Splints Sterilization Therapy equipment Surgeon Transportation expenses (relative to health care) Telephone or TV equipment to assist the hard-of-hearing. Ultra-violet ray treatment Vaccines Vasectomy Vitamins (if prescribed) Wheelchair X-Rays Eligible Over-the-Counter Drugs Antacids Allergy Medications Pain Relievers Cold Medicine Anti-diarrhea medicine Cough drops & throat lozenges Sinus Medications & Nasal sprays Wart removal medication Nicotine medications & nasal sprays Antibiotic ointments Pedialyte First aid creams Calamine lotion Sleep aids Motion sickness pills Non-Deductible Medical Expenses Suppositories & creams for hemorrhoids Advancement payment for services to be rendered next year. Boarding School Fees Cosmetic Surgery & procedures Health programs offered by resort hotels, health clubs and gyms Maternity clothing Athletic Club membership Bottled Water Cosmetics, hygiene products & similar items. Illegal operations and treatments Non-prescription medication Automobile insurance premium allocable to medical coverage Commuting expenses of a disabled person Funeral, cremation or burial expenses Illegally procured drugs Premiums for life insurance, income protection, disability, loss of limbs, sight or similar benefits Scientology counseling Social activities Special foods & beverages Specially designed car for the handicapped other than an autoette or special equipment Travel for general health improvement Stop-smoking programs Tuition & travel expenses for a problem child to a particular school Swimming pool Weight Loss programs 5

6 FSA Eligible Medical Expenses continued Toiletries (including toothpaste) Ineligible Over-the-Counter Drugs Acne treatments Lip balm (including Chapstick or Carmex) Cosmetics (including face cream & moisturizer) Suntan lotions Medicated shampoos & soaps Vitamins (daily) Fiber Supplements Dietary supplements Weight loss drugs for general well being Herbs 6

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