Flexible Spending Account Management
A Flexible Spending Account (FSA) is an account established by your employer to allow you, the employee, to set aside pre-tax payroll dollars for IRS-Approved medical, dental, vision and dependent care expenses not otherwise reimbursable through another source (i.e. insurance company).
Money set aside in the Flexible Spending Account is deducted in equal increments from your payroll check throughout the plan year before taxes are calculated. This plan lets you use some of the money that Uncle Sam would otherwise take to pay for your healthcare and dependent care expenses. In addition, by setting aside these dollars you reduce your taxable income resulting in more take-home pay.
Note: Your year-end W-2 form will not reflect any contributions for purposes of federal, state, or social security taxable wages.
Type of Expenses Paid on a Pre-Tax Basis
Currently you can use your FSA for healthcare expenses not covered by your current health plan:
- Office copays
- Dental care
- Vision care
- Child care
- Elder care
For more information, please refer to the United States Internal Revenue Service website for more information on benefits that can be paid through an FSA.
Do I need to be enrolled in my employer's medical plan to be eligible for FSA?
No. You can still pay you out of pocket expenses for you and your dependents with the FSA as long as you meet the requirements.
How much of my pre-tax income can I allocate to the FSA?
For the 2017 plan year, the amount you can allocate for Dependent Care FSA is limited to $5,000 by the IRS. This amount will reduce to $2,500 if you are married and filing separate returns (other limitations may apply). You can allocate up to a maximum $2,600 of your salary annually for the healthcare FSA.
When and how do I request reimbursement from my FSA?
When you incur expenses that are eligible for reimbursement, the simplest way to request reimbursement is through the Member Portal. If you do not request reimbursement online, you may complete a Request for Reimbursement form and mail or FAX to EHIM at #248-204-6350 with the following documents:
- Copy of the receipt or statement for your dependent care expenses.
- Copy of the Explanation of Benefits or itemized bill.
- Proof of payment for healthcare expenses.
What happens if I have unused dollars left in the account at the end of the plan year?
Currently the IRS has a “use it or lose it” rule for Dependent Care FSA. This means you will forfeit any balances left in the account at the end of the plan year. However, in October 2013, the US Department of Treasury modified the “us it or lose it” rule, allowing Health Care FSA plan participants to rollover up to $500 of unused FSA funds, rather than the traditional funds forfeiture.
If a Debit Card is included in your FSA program, please refer to the Participant Portal Instruction page for more information.
For more information please contact the EHIM Medical Department Customer Service at 248-948-9900 or 800-311-3446.