Liberty Health offers Flexible Spending Accounts that are “savings accounts” that allow you to set aside pre-tax dollars to pay for your medical and/or child care expenses. The maximum contribution to the Medical Spending Account is $3,200 annually with a minimum of $520. The maximum contribution for the Child Care Spending Account is $5,000 annually with a minimum of $520.
REMINDER: You are only eligible to enroll into the Flexible Spending Accounts during the annual enrollment period and you must re-enroll every year during the annual enrollment period in order to participate in the Flexible Spending Accounts!
Flexible Spending Accounts help you save money by providing a way to pay for certain types of health care and dependent care on a pre-tax basis. There are two types of Flexible Spending Accounts:
Flexible Spending Account (FSA)
Allow employees to set aside pre-tax dollars taken through a payroll deduction to pay for expenses not covered by any insurance plan in which you may be enrolled. These pre-tax dollars are set aside in a personal flexible spending account until needed. You may contribute up to $3,200 during the benefit plan year – April 1 through March 31.
Dependent Care FSA (DCFSA)
Allow employees to set aside pre-tax dollars taken through a payroll deduction to pay for work-related child care expenses or adult dependent care. DCFSAs may be used to pay for the care of dependent children under age 13 or any disabled dependent who lives with you and who you claim on your taxes. Your total savings will depend upon your family income, tax status, and total expenses. If you have Dependent Care expenses, you may choose to claim a tax credit when you file your Federal taxes rather than contribute to a Dependent Care FSA. The annual maximum amount you may contribute is $5,000 (or $2,500 if married and filing separately) per calendar year. All DC participants are required to complete IRS form 2441 when preparing their tax returns.
If you are currently enrolled in the Health Care or Dependent Care Flexible Spending Account, your election will not carry over to the next plan year. If you wish to keep your FSA plan, you must enroll for the new plan year during the annual Open Enrollment period. If you have an FSA debit card, do not throw it away. You will use the same debit card each year. Charges will apply if ordering a new debit card. Debit cards are issued by Flores & Associates.
Unused health FSA balances of up to $640 will automatically be carried over at end of the benefit plan year to the new plan year if you remain actively employed. You do not have to re-enroll for the new plan year to receive the rollover. Please note the rollover does not apply to the Dependent Care FSA.
How an FSA or DCFSA Works
During Open Enrollment, you decide how much money to contribute to the FSA and/or DCFSA for the next plan year. This amount will be deducted in equal increments from your paycheck pre-tax.
Expenses must be incurred during the plan year (April 1 – March 31) and must not be eligible for reimbursement from insurance policies or any other source.
You will have 90 days after the end of the plan year to submit claims for reimbursement.
To find the appropriate forms such as the No-Wait Dependent Care, FSA Medical Reimbursement, or Direct Deposit, visit www.flores247.com
Eligible and Ineligible Expenses
For a complete listing of eligible and ineligible expenses, visit www.irs.gov and refer to Publication 502
Video: Flexible Spending Account
