by admin | Sep 28, 2022 | Blog
A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows account holders to set aside pre-tax dollars into an account to be used for eligible medical expenses. An FSA can help save money in the short-term and in the future. Below are five FSA facts you may not know:
Fact #1: FSA election amounts can be changed mid-year
If a participant experiences a change in status as defined by IRS regulations, such as marriage, divorce, birth, or death in the immediate family they may change election amounts at any time throughout the plan year.
Fact #2: An FSA is terminated if an account holder’s employment ends
While post-termination claim timelines can differ from plan to plan, a participant’s expenses incurred prior to their date of termination would be eligible for reimbursement. Any funds remaining at the end of the contribution run-out period would be subject to forfeiture.
Fact #3: There is no deadline for submitting claims
Depending on the employee’s plan design, claims can be submitted for reimbursement at any time during the same plan year that expenses are incurred. Also, participants may utilize either a grace period or carryover after the end of the plan year. Claims can be submitted for reimbursement at any time during the plan year in which expenses are incurred.
Fact #4: Over-the-counter (OTC) medications are eligible for reimbursement
This is true. In addition, OTC medications no longer need to be accompanied with a doctor’s prescription. Now, a participant must only submit a claim with the receipt for the OTC medicine.
Fact #5: A benefits debit card and claim filing are two ways to take funds out of an FSA
A simple swipe of the NueSynergy smart debit card is the most common way to use an FSA. Filing a claim through the NueSynergy participant portal, mobile app, or by email works too – however a detailed receipt is required. The receipt should include the provider’s name, service/item, amount, and the date of service. Once submitted and approved, reimbursement would be issued.
by admin | Sep 20, 2022 | Blog
A Health Care Flexible Spending Account (FSA) is a popular option for nearly everyone. This account allows you to set aside pre-tax dollars for eligible expenses, which means you don’t have to tap into your checking account when you have medical, dental, and vision expenses for you or your dependents
The following is a brief list of expenses Health Care FSA funds do and do not cover.
What qualifies
- Feminine hygiene products
- Copays, deductible payments, and coinsurance
- Doctor office visits and exams
- Hospital charges
- Prescription drugs
- Dental exams, x-rays, and orthodontia
- Physical therapy
- Over-the-counter medications and first aid kits
- Vision exams, contacts, and glasses
What doesn’t qualify
- Expenses incurred in a prior plan year
- Cosmetic procedures or surgery
- Dental products for general health
- General hygiene products
- Insurance premiums
by admin | Aug 22, 2022 | Blog
For new FSA members, there are two carryover fund options to take note of: Healthcare to Healthcare and Healthcare to Limited Purpose. Here they are followed:
Healthcare FSA to Healthcare FSA carryover
As of December 31, any funds up to $570 remaining in a Healthcare FSA will immediately carryover on the first day of the new plan year. This means that the carryover amount is simultaneously available to pay previous plan year expenses and current plan year expenses during the previous plan year run-out period.
Healthcare FSA to Limited Purpose FSA carryover
Remaining carryover funds in a Healthcare FSA as of December 31 can only be used for previous plan year dates of service until the end of the plan run-out period. Any dental or vision expenses incurred during the new plan year can be reimbursed either immediately from the new Limited Purpose FSA, or at the end of the run-out period when any remaining funds from the previous Healthcare FSA are carried over to the Limited Purpose FSA.
by admin | Aug 17, 2022 | Blog
A Dependent Care FSA, or DCA, is a flexible spending account that allows employees to contribute to a portion of their paycheck, pre-tax, to pay for qualified dependent care expenses. Here is a list of five facts regarding this account.
Fact #1: Any participant of this account can enjoy a 30% average tax savings on the total amount they contribute to a DCA.
Fact #2: Contributing money to this account starts by first making an annual election during open enrollment. From there, your employer will deduct the election amount from your paycheck before taxes are assessed in equal amounts throughout the year.
Fact #3: You can contribute up to the IRS limit of $5,000 annually on income tax returns if filing single or married jointly. If married and contributing to an account separately, you can contribute up to $2,500 each, or $5,000 total.
Fact #4: Eligible expenses for a DCA must be for the purpose of allowing you to work or look for work. Services may be provided at a child or adult care center, nursery, preschool, after-school, summer day camp, or a nanny in your home.
Fact #5: There are two methods to use funds in a DCA. One option is paying directly from your account through a benefits debit card (only if your care provider accepts credit cards). The second option is paying out-of-pocket and then file a reimbursement claim with your expense documentation.
by admin | Jul 28, 2022 | Blog
A Commuter Benefits FSA is a reimbursement plan governed by the IRS that grants employees to contribute a set amount of gross income to a designated account(s) before taxes. The two types of Commuter Benefit accounts are transportation and parking. Here are questions to consider regarding this plan.
What expenses are eligible for reimbursement from a Commuter Benefit FSA?
Transportation Accounts: Any out-of-pocket expenses for passes, farecards or vanpooling for transportation to and from a plan holder’s residence.
Parking accounts: Any out-of-pocket expenses for parking at or close to an employer’s business. In addition, parking expenses at or near a location from which a plan holder commutes by way of mass transit or commuter vehicle.
What is the maximum amount a participant can contribute to a Commuter Benefits FSA?
Both the Transportation and Parking accounts have a maximum monthly contribution of $280 for 2022. This amount varies every year.
