today’s knowledge – tomorrow's solutions...gdi ensures every call is answered by a live...
TRANSCRIPT
Today’s Knowledge – Tomorrow's Solutions
Flexible Spending Accounts (FSAs)
Today we will talk about saving tax dollars
Flex Spending Accounts
• Medical FSA • Dependent Care FSA
Limited Purpose FSA
Participant Portal for online access
Employees Save Money Using FSAs
• No taxes paid on every dollar you set aside
• Easy payroll deduction
• Eligible expenses are covered for all IRS-defined dependents Ask yourself… How about after school care for the kids? Anyone need new eyeglasses this year?
Who Can Participate?
• All benefit-eligible employees – No need to be enrolled your employer’s health plan to participate. – You may also use a Medical FSA for your IRS-defined tax
dependents.
• Exception: Health Savings Accounts – If you or your spouse plan to open an HSA in 2013, your 2012 FSA
must have a zero balance by 12/31/2012 to open an HSA in 2013.
• Limited Purpose FSA: If you or your spouse contribute to an HSA, your FSA is “limited” to dental, vision and preventive care until the HSA statutory limit has been met. For 2013, after minimum deductible of $1250 Single or $2500 Family has been incurred, the account will no longer be limited and will cover FSA general medical expenses.
Medical FSA: What’s new for 2012
The Patient Protection and Affordable Care Act (PPACA) imposes a federal Medical FSA Salary Reduction Cap of $2500 for the taxable year beginning January 1, 2013. 2012: $5000 maximum FSA election This applies to Medical FSA and Limited Purpose FSA
Use-it-or-lose-it Rule still applies to all FSAs!
2013: $2500 maximum FSA election
Dependent Care FSA • Dependent Care for (children up to their 13th birthday) who need care
while parents are working, and/or
• Elder Care for your IRS-qualified elder dependent who needs care while family members are working
The IRS limits for Dependent Care:
Max: $5000 per year for single or married filing jointly Max: $2500 per year for married filing separately
That’s $5000 a year subtracted from your taxable income! Sample of eligible expenses: Before & after school care, pre- school, day camps, fees paid to a provider in your home or their home. Sample of ineligible expenses: Kindergarten, Child Support, overnight camp, incidental babysitting.
Limited Purpose Medical FSA
• If you participate in a HDHP and you may open an HSA and enroll in a Limited Purpose FSA
• IRS rules limit the use of a Limited Purpose FSA to Vision & Dental expenses
• Why? Prevents “double dipping” from HSA and FSA for medical expenses
• Allows your HSA to accumulate for future expenses
• Use your LP FSA for predictable Vision & Dental expenses (use-it-or-lose-it)
. This estimator can help you decide how much you
spend annually on medical, dental or vision expenses.
• Is orthodontia in your family’s future?
• Does anyone need glasses?
• Contacts?
• Prescriptions?
How Much Do I Elect?
These are Some Ineligible Medical FSA Expenses
• Teeth whitening • Cosmetic surgery • Insurance premiums • Electrolysis • Hair transplant • Care from non-licensed medical professionals
AND - new since 2011: • Over the Counter medication without a written
prescription from a provider and a diagnosis
Special Notes: The Medical FSA, Limited Purpose Medical FSA and Dependent Care FSA are IRS-regulated benefits and there are rules that go along with using these plans.
Your best source of information about these plans is your Summary Plan Description
Questions?
Our Reimbursement Services Team is available. GDI ensures every call is answered by a live person during business hours, Monday-Friday, 8 am to 5pm.
Email: [email protected]
800-626-3539
GDI’s Consumer Portal
Participant home page
Action notices to you
Snapshot of elections, online claim entry and available balances.
Shortcut to
Account Details
Participant Account Inquiry Screen
The Account Summary page for detailed account activity.
Account notifications are sent via email (if you provide your email address by
clicking on “Update Profile”
Summary of demographic information, ability to update bank accounts, order debit cards for dependents, etc.
Click “Add Dependent” to add
your SPOUSE and/or
DEPENDENT
A history of all notifications sent to you to date
Forms for
your use
Thank you for choosing GDI!
More ways to find out about FSA’s:
• Your Summary Plan Description • GDI website at www.gdynamic.com • Call our Reimbursement Service Team at 800-626-3539 • Email: [email protected]