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 The Flexible Spending Account options offers employees the opportunity to reduce taxable income and increase take-home pay through pre-tax deductions. These pre-tax deductions include monthly insurance premiums and funds set aside for reimbursement of expenses not covered by insurance. For more detailed information please see the summary plan description book. (25 pgs)
There are three types of accounts available to employees:
The Employee Insurance Premium Contribution Account
This account allows pre-tax treatment of insurance premiums and adjusts automatically to the group rate changes.
Employees do not need to re-enroll each plan year. The Health Care Spending Account
This account allows participants pre-tax reimbursement for the eligible health care expenses that are not covered by their medical or dental insurance plans. There is a plan year maximum contribution of $6,000.
Employees must re-enroll each plan year. The Dependent Care Spending Account
This account allows participants pre-tax reimbursement for the eligible dependent care expenses that are necessary to allow the employee and their spouse to work or attend school full-time. There is a plan year maximum of $5,000 or $2,500 if married filing separately.
Employees must re-enroll each plan year. Enrollment
Every employee must complete a form to enroll or to decline participation. Return your completed form to the Human Resource department within the first 31 days of employment, during the annual Open Enrollment period, or if you experience a qualifying event. Enrollment Form- Personal Choice Flex Submitting a Claim
Submit an eligible expense for reimbursement by completing a claim form and attaching the relevant documentation. Be sure that the claim form is complete, signed, and dated. Employees may submit their claim by mail or fax. Generally, Personal Choice processes claims within two to three days of receipt. Reimbursement checks will be mailed to the employees home address or can be credited to a checking or savings account by direct deposit.
Claim Form- Health Care Spending Account
Claim Form- Dependent Care Spending Account
End of Plan Year
The IRS states that if participants do not have expenses incurred during the plan year that equal or exceed the money they have set aside on a pre-tax basis during the plan year (April 1st-March 31st); they lose the remaining balance in their Flexible Spending Account.
The last day to submit a claim for the eligible expenses incurred during the April 1, 2008 - March 31, 2009 plan year is June 30, 2009.
Personal Choice provides a worksheet that will help in forecasting expenses before making elections.
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