An account for setting aside tax-free money for healthcare expenses.
Use the below information to determine if a Flexible Spending Account (FSA) is right for you and how to best take advantage of an FSA account.
How It Works
When you enroll in a Flexible Spending Account (FSA) you get to experience tax savings on qualified expenses such as copays, deductibles, prescriptions, over-the-counter drugs and medications, and thousands of other everyday items.
Can I have an FSA and an HSA?
You can’t contribute to an FSA and HSA within the same plan year. However, you can contribute to an HSA and a limited purpose FSA, which only covers dental and vision expenses.
As per IRS Publication 969, an employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally can’t make contributions to an HSA. An employee is also not HSA-eligible during an FSA Grace Period. An employee enrolled in a Limited Purpose FSA is HSA-eligible.
As a married couple, one spouse cannot be enrolled in an FSA at the same time the other is contributing to an HSA. FSA coverage extends tax benefits to family members allowing the FSA holder to be reimbursed for medical expenses for themselves, their spouse, and their dependents.
The Value & Perks
– Election Accessibility: You will have access to your entire election on the first day of the plan year.
– Save On Eligible Expenses: You can save up to 40% on thousands of eligible everyday expenses such as prescriptions, doctor’s visits, dental services, glasses, over-the-counter medicines, and copays.
– Keep More Money: The funds are taken out of your paycheck “pre-tax” (meaning they are subtracted from your gross earnings before taxes) throughout the course of the year. Let’s say you earn $40,000 a year and contribute $1,500 to an FSA; so, only $38,500 of your income gets taxed. That means you are increasing your take-home pay simply by participating!
– Easy Spending and Account Management: Employees will receive an Ameriflex Debit Mastercard linked to their FSA. Employees can use their card for eligible purchases everywhere Mastercard is accepted. Account information can be securely accessed 24/7 online and through the mobile app.
Eligible FSA Expenses
The IRS determines what expenses are eligible under an FSA. Below are some examples of common eligible expenses:
– Deductibles
– Copays
– Prescriptions
– Teeth cleaning
– LASIK
– Glasses and contact lenses
– Band-aids
– Sunscreen
– Over-the-counter medicine (prescription required)
– Feminine menstrual care
For a full list of eligible expenses, go to myameriflex.com/eligibleexpenses.
The “Use-or-Lose” Rule
If you contribute dollars to a reimbursement account and do not use all the money you deposit, you will lose any remaining balance in the account at the end of the eligible claims period. This rule, established by the IRS as a component of tax-advantaged plans, is referred to as the “use-or-lose” rule.
To avoid losing any of the funds you contribute to your FSA, it’s important to plan ahead as much as possible to estimate what your expenditures will be in a given plan year.
Flexible Spending Accounts: Ameriflex
Dental Insurance: Sun Life
Vision Insurance: EyeMed Vision
Cancer Benefits: Colonial Life
Accident Benefits: Colonial Life
Medical Bridge Benefits: Colonial Life
Short-Term Disability Benefits: Colonial Life
Critical Illness Benefits: Colonial Life
Life Insurance: Colonial Life
Telemedicine Benefits: Call A Doctor Plus
Pet Insurance: Nationwide – Direct Billing Only
ID Theft & Legal Benefits: Legal Shield – Direct Billing Only
Student Loan Assistance Program: GradFin